The shares of the camera company Kodak gained 30 times value in two days with the effect of revealing the agreement reached with the American government.
The shares of Kodak, a company that once dominated the photography industry worldwide, have experienced a dramatic rise in recent days.
This rise, which is the kind that will bite the rises in altcoins seen in the crypto money markets, is directly related to the announcement of US President Trump that Kodak will start producing pharmaceutical active substances in the USA and will give the company a loan of 765 million dollars.
At a press conference at the White House, Trump pointed out that a large percentage of the drug ingredients are currently produced in India and China, but can be produced cheaper within the country, saying, “This agreement will be loaned to 765 million dollars under the Defense Production Act for the agreement we reached with Kodak. . ” used the expression.
Kodak’s shares began to rise before the deal was announced. This brought along allegations that information was leaked from within. While the statement came on Tuesday, there was a large increase in the trading volume of Kodak shares on Monday.
The shares of Kodak, which were traded at $ 2 levels on Monday, have reached up to $ 60 as of yesterday. In a period of about two days, some investors and traders had a profit opportunity of approximately 3000 percent.
Robinhood users attack Kodak shares
Prior to this increase, there were approximately 9,300 users holding Kodak shares in the popular stock trading application Robinhood. At the end of the exponential increase seen on Wednesday, the number of investors who entered the Kodak share increased to over 72 thousand.
Similar buying spree happened several times this year. For example, shares of the car rental company Hertz declined after they declared bankruptcy in late May, but after a while it rose more than 900 percent in nine. At the time, the share of Robinhood investors in Hertz shares almost tripled.
George Canboy, chairman of the asset management company Brighton Securities, who made an assessment of what happened at Kodak, said, “Last week the value of the company was $ 100 million. So if you had 100 million dollars, you could buy the whole Eastman Kodak. Currently, one share is worth $ 33 and the market cap is around $ 1.4 billion. At the summit seen this morning, it was $ 2.6 billion. ” said.