Stock Alert for Eastman Kodak Co. (EKDKQ)
  • Stock Alert for Eastman Kodak Company (EK)
  • Kodak Shares pare Last Friday’s Losses
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    Doin’ something Right; Kodak Shares continue Rally

    Doin’ something Right; Kodak Shares continue Rally

    After dropping more than 50% last Friday, Eastman Kodak Company (NYSE: EK) shares have rebounded strongly this week.

    Last Friday, Eastman Kodak shares plunged more than 50% after speculation grew that the company will file for bankruptcy. The speculation was fueled by reports that the company hired law firm Jones Day. Also, the company recently drew $160 million against the credit line, raising questions about its liquidity position.

    Kodak, however, dismissed rumors of bankruptcy and released a statement after market close last Friday. The company said that it hired Jones Day to advice on its planned strategic transformation.

    Since then, Kodak shares rebounded sharply, gaining more than 100% this week. The stock is up 19.67% to $1.46 in today’s trading, with volume up from daily average of 16.89 million to 18.59 million.

    Kodak has struggled in recent years, losing money in five of the last six years. The company is planning a strategic transformation under which it plans to sell its digital imaging patent portfolio. Although analysts say that the company could fetch as much as $3 billion from a patent sale, very little progress has been made on this front.

    Earlier today, Citigroup wrote in a research note that the company’s goal for how much it may get out of intellectual property lawsuits looks to slipping further away. Citi cut its price target on the company’s shares from $2 to $1 and reiterated its Sell rating.

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