Home » Economy » Tweets and articles sent Kodak shares surging before official announcement of government loan
Tweets and articles sent Kodak shares surging before official announcement of government loan
Kodak CEO banks $80 million on stock rally
Kodak CEO Jim Continenza added about $80 million to his net worth so far this week after his company’s stock surged on the announcement that it would help produce generic drugs.
A day before Eastman Kodak Co. received a $765 million loan from the U.S. government, shares of the onetime photography giant were already on the move.
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On Tuesday morning, The Wall Street Journal reported that Kodak would receive a U.S. loan to produce drug ingredients. The news, officially announced by the company and Trump administration on Tuesday afternoon, more than tripled the value of the company's stock.
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But less than a day before the announcement, the stock was already moving higher on heavy volume. More than 1.6 million shares of Kodak were traded on Monday, a big jump from an average daily volume of 231,000 shares a day during the previous 30 trading days. The stock price gained 25% that day.
The early activity was suspicious to some traders. It came well ahead of the announcement the next day. But some market observers know why the Kodak stock moved early: tweets and news stories from television stations in Kodak's hometown of Rochester, N.Y. Some of those tweets and stories were quickly deleted.