Kodak stock skyrockets after large hedge fund’s stake purchase
Kodak shares climbed 25% on the news Tuesday. The stock is now up nearly 70% this year.
Kodak stock, which was trading at just $ 2.62 before the loan was announced, climbed to $ 60 within days before falling sharply. The stock is now trading around $ 7.50.
Kodak, once a leading American industrial company, a member of the illustrious Dow, went bankrupt in 2012 and exited Chapter 11 a year later.
But since then he’s just a shell of himself. The company briefly tried to cash in on the cryptocurrency craze a few years ago when it launched KodakCoin.
Nonetheless, the fact that DE Shaw, a well-respected investment firm, took a stake in Kodak is remarkable.
On the one hand, DE Shaw bought its stake after the government loan was suspended. He therefore did not invest at the height of the feeding frenzy of day trader Kodak.
The company is also mainly known for its so-called quantitative investments, which means that it examines more statistical data than basic research into the demand for a company’s products.