#TheZooHasGoneNuts: Kodak — after Crypto-Scheme in 2018 Caused Shares to Surge 300% Before Recrashing — Gets Trump-Pump Worth 2,190% Before Recrashing

#TheZooHasGoneNuts: Kodak — after Crypto-Scheme in 2018 Caused Shares to Surge 300% Before Recrashing — Gets Trump-Pump Worth 2,190% Before Recrashing

Insiders front-run the announcement. Locust-swarms of Robinhood traders pile on top. Taxpayers brace themselves. Shaking my head while holding my nose.

By Wolf Richter for WOLF STREET.

Yesterday or today was probably the first time that many Robinhood traders had contact with something antediluvian called “Kodak,” and boy did they jump into it.

People who have been around this zoo for an additional two years remember that Kodak last was infamous for a crypto-insider-stock-grant scheme when it announced in January 2018 that it would create its own crypto, called KodakCoin, which at the peak of the crypto-idiocy, caused its stock to quadruple in two days, from $3.10 to $12.40, before it re-collapsed. As you’d expect from an outfit like this, on January 8, the day before the announcement, seven independent directors had awarded themselves huge stock grants.

So, on Monday, Kodak’s shares [KODK] closed at $2.62, up 25%. On Tuesday, President Trump’s announcements started. By Wednesday morning, shares hit $60 for a microsecond, a 2,190% gain in less than two days, before giving up nearly half of it and closing at $33.20. This chart shows the daily action, including the effects of the KodakCoin-scheme:

But this time it’s real fiat money, so to speak, not cryptos, and in a big way, and it smells, with Trump pulling strings personally, with Trump himself announcing on TV to the world that this outfit would get a $765-million loan from the US government, under the Defense Production Act, the first such loan the government issued.

At the White House briefing, Trump said, “Today my administration has taken a momentous step toward achieving American pharmaceutical independence — a very, very big, big step — a focus of our campaign to bring America’s critical supply chains and medical manufacturing back to the USA.  We’ve been working on this for a long time.”

And after a lot of blah-blah-blah, the President got to the nuts and bolts: “Kodak will now produce generic active pharmaceutical ingredients, which is a big deal. Using advanced manufacturing techniques, Kodak will also make the key starting materials that are the building blocks for many drugs in a manner that is both cost-competitive and environmentally safe. We’ll be competitive with almost all countries, and soon with all countries.” Etc. etc.

Continue Reading / Wolf Street >>>

Sharing is caring!

Wolf Richter

In his cynical, tongue-in-cheek manner, he muses on WOLF STREET about economic, business, and financial issues, Wall Street shenanigans, complex entanglements, and other things, debacles, and opportunities that catch his eye in the US, Europe, Japan, and occasionally China. WOLF STREET is the successor to his first platform… TP-Title-7-small-200px …whose ghastly name he finally abandoned in July 2014. Here’s the story on that. Wolf lives in San Francisco. He has over twenty years of C-level operations experience, including turnarounds and a VC-funded startup. He earned his BA and MBA in Texas and his MA in Oklahoma, worked in both states for years, including a decade as General Manager and COO of a large Ford dealership and its subsidiaries. But one day, he quit and went to France for seven weeks to open himself up to new possibilities, which degenerated into a life-altering three-year journey across 100 countries on all continents, much of it overland. And it almost swallowed him up.