The Kodak-Share (NYSE: A1W4RC) has really performed remarkably over the past few days. If the shares of this, hm, let’s just say company just recently at a share price of around 1.81 euros, it went off like a rocket.
The course level is currently EUR 21.89 (July 31, 2020, decisive for all courses). The share has thus achieved a performance of over 1,000%. More specifically, by 1.209%.
The much more important question now is: What is Kodak Eastman at this level? What are the reasons for this performance? And is it a good idea for Foolish companies to put a foot in this door now? Exciting questions that are now crying out for an answer.
Kodak wants to reinvent itself
Kodak and Kodak Eastman basically want to reinvent themselves. Many may still associate the name with the company that was previously the market leader in the field of photo cameras. And overslept the trend towards digital cameras. Yes, there was something … however, those responsible now want to move away from this image. Once again, I almost want to say. But I don’t want to anticipate the punch line.
In any case, those responsible have now explained accordingly: We are now more a chemical company than a former photo company. Accordingly, we now want to realign ourselves. And in the end, design basic materials for pharmaceutical products and thus get a right to exist in the world of pharmacy. Kodak has now even received a loan of $ 765 million for this. Donald Trump also patted the troubled company on the shoulder and expressed its confidence. Well, that can only go well.
However, there doesn’t seem to be a lack of visions. With the help of Eastman Kodak, the US government in the form of Donald Trump plans to make the United States the world’s largest medical device manufacturer and provider. A definitely exciting vision. But what is it about this dream … ?!
Many will say: Kodak wants to reinvent itself
Kodak, Kodak … wasn’t there something a few years ago? Yeah right! Entering the pharmaceutical industry is not the first step to reinvent yourself. If you take a closer look at the chart, you will see another such movement that shows that the scheme is actually not as new as it seems.
No, because in 2018 it was said: We make blockchain! The peak of the Bitcoin boom suddenly turned to digitizing photos and securing rights with the help of the blockchain. A supposed billion dollar business for the company. And the stock. And maybe also for investors.
What has happened in the meantime? It has become very quiet around Kodak Eastman and the blockchain. The share corrected from EUR 8.20 after the Bitcoin boom to EUR 1.81 in the meantime. Well, as I said: Until now. Because now there is another vision.
You may notice: I am rather skeptical
In any case, what is new is that Kodak will receive $ 765 million to actually reinvent itself. But will that be enough? Another question. It is also strange that this realignment comes at a time when health products are in demand. And that in 2018, blockchain became an issue in the Bitcoin boom. A prankster who thinks evil. Maybe it’s just an unfortunate timing.
In any case, I am skeptical about the long-term potential. A look at the share price shows it. And after oversleeping the digital camera, Kodak Eastman’s stock has at least historically shown that the disreputable story repeats itself rather than that there is a turning point.
The post Kodak share rises more than 1,000%: is the share now a buy ?! appeared first on The Motley Fool Germany.
Vincent does not own any of the stocks mentioned. The Motley Fool does not own any of the stocks mentioned.
Motley Fool Deutschland 2020