Remember Kodak? If you were born in the 2000s – it was a camera and film company that thrived in the era where you printed out pictures and not saved them on your phone.
Kodak was the first company to develop and patent the handheld digital camera in 1975 but they decided they weren’t going to launch fearing it would threaten their photographic film business and rest is history in 2012 Kodak filed for Bankruptcy
But today we are not going to discuss the past but the present and here is the Big News
Shares of Eastman Kodak surged 318 percent to $25.26 per share on July 29 – its best – after United States President Donald Trump announced the company had a deal to produce generic drugs in light of COVID-19 pandemic. The jump at one point of the day was 570 percent at $60 per share and trading was halted 20 times during the day due to high volatility.
As per CNBC “Total increase in the share price for this week alone was 1,300 percent, hitting a market cap of more than $1.5 billion from $115 million till July 27”
Here’s the Story
Trump administration wants to bring the manufacture of drug ingredients back to the U.S. to reduce dependence on other countries and ensure consistent supply.
Many of the world’s pharmaceutical ingredients come from China or India and this has been a concern for the US because of quality-control issues and pandemic-related shortages.
Here the deal
Kodak is getting a $765 million loan to start the manufacturing of drugs to treat coronavirus.
What’s a big deal in that? Imagine Company with Market Value of less than $300 Million is offered a loan of $765 million. That’s big deal friends. That’s a big deal but frankly not big enough to rally 1300 percent
Well, this wave is created by Robinhood Army and to give you brief about Robinhood it is a discount broking platform and most popular among millennials across the globe with investors median age of 29 years and Robinhood users are called Robinhood Army.
As per Robintrack.net more than 100,000 Robinhood users now hold the Kodak stock. Before the announcement, less than 10,000 users were invested in KODK. Robinhood Army was behind Tesla and now it’s time for Kodak.
We are not experts to say whether Kodak can manage to develop a vaccine for Coronavirus but it’s certainly a different road to travel for Kodak, which traces its roots back more than 130 years and of course has been synonymous with photography, imaging and film through the decades.
Did you see that coming? Of course not….
Kodak is having a moment “Smile Please”