3 Reasons To Avoid Kodak Stock
Kodak stock has popped a whopping 575% between July 17 and pre-market trade on July 29. The stock rose even more in morning trade on July 29 — soaring 16.4-fold since July 17 to $38.
That upward move was sparked by July 28 news that the photography pioneer is borrowing money from the government to manufacture ingredients for generic drugs such as the malaria treatment hydroxychloroquine.
And it was super-charged by the Robin Hood effect. By 11 a.m. on July 29, “43,000 users of the investing app had added Kodak to their accounts in the previous day — …20 times more than the next most-popular stock, Actinium Pharmaceuticals,” reported Bloomberg.
Should you buy the stock today? I see three reasons not to:
- Kodak’s financial performance and prospects are poor
- Demand for generic malaria drug ingredients may be weak
- Kodak has a long track record of poor management