Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Eastman Kodak (NYS: EK) have roughly doubled, with today's high so far of $1.63 representing a nearly 109% jump from Friday's close of $0.78, before somewhat pulling back after the company denied the rumors of a bankruptcy filing.
So what: Last week, the stock was absolutely destroyed on reports that Kodak had hired Jones Day for restructuring advice, losing more than half its value as "restructuring" typically refers to "bankruptcy." The idea of the 123-year-old camera-maker going bust is believable within the context of investor unrest, cash shortage fears, and dubious business model.
Now what: Kodak has said it "is committed to meeting all of its obligations and has no intention of filing for bankruptcy," while company spokesman Gerard Meuchner added that Kodak is making a coupon payment today. Today's bounce is just that: a bounce. Kodak has far more potential negative catalysts than positive ones, and this Fool thinks shares will continue their downward trajectory even after today's jump. Kodak doesn't belong in your portfolio, but feel free to watch its downfall with our watchlist service.
Interested in more info on Eastman Kodak? Add it to your watchlist byclicking here.
At the time thisarticle was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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