Update: after soaring as high as $60/share, Kodak stock has encountered some major turbulence which sent it into a bear market seconds after it exploded higher by 500%, and was last trading around $29.71. Meanwhile the stock has been halted 14 times in the first 90 minutes of trading.
14 halts and counting:
Here are the biggest winners: the top holders of KODK stock as of this morning:
And speaking of holders, someone may want to ask "Jimmy" Continenza some questions:
One person who apparently did not get in on the action is the king of daytraders, Dave Portnoy himself:
Would it have killed Don to give me a heads up that Kodak was gonna turn into a drug company and get a billion dollars for it? pic.twitter.com/Y6Q9L1Rf6t— Dave Portnoy (@stoolpresidente) July 28, 2020
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Yesterday morning we reported that the formerly giant and now tiny Kodak had received a $765m loan from the government to shift to producing chemicals needed for local production of generic medicines, a step taken to ensure that the US is no longer solely reliant on China and India for such inputs, and which sent the stock sharply higher on Tuesday, we had a simple question: why was the stock not much higher: after all with a market cap of just a few hundred million, this stock was about to be a call option on a US-government funded shift to non-China supply chains. And sure enough, we asked as much well before today's market open, when the stock was trading at around $13/share.
If Trump plans to use Kodak as the anti-China stock with full government backing, shouldn't it be trading at $100?— zerohedge (@zerohedge) July 29, 2020
We also noted that once Robinhooders discovered the company's upward momentum, it would soon become the most popular stock on the retail-focused brokerage.
KODK be a top 10 RH stock in a few days pic.twitter.com/VDyAwb1cV1— zerohedge (@zerohedge) July 29, 2020
Well, we were right, because less than an hour into trading, Kodak stock was half way to our "target", and has been already halted no less than 10 times...
... amid relentless surges in volatility, which have sent the stock which was trading at just $2/share a few days ago above $50, one of the biggest stock spikes in history.
And here's the reason why: it took a day, but as we predicted, the message finally funneled through to the biggest price setting force in the market today: Robinhood, where 43,029 users bought the stock in the past 48 hours. As Bloomberg calculates, the activity was 20 times more than the next most-popular stock, Actinium Pharmaceuticals Inc. Roughly 27,000 of the additions came over a four-hour span earlier Wednesday.