Kodak gets loan; Stock Triples in Value!

[markjwyatt]

I don't know what it means the CEO buying stocks five weeks before news was leaked,...

Kodak says it is part of his normal stock purchase plan. The truth will come out on this.

...but I doubt that Kodak will be making hydroxychloroquine. They aren't going to manufacture drugs (as I read it), they will by synthesizing precursors for the manufacture of drugs. Second, hydroxychlorquine is a political football and what we hear about it's lack of efficacy might not be true....

They will make Active Pharmaceutical Ingredients (API), so it could be hydroxychloroquine, but likely not the tablets.

Whether it works or not is between a patient and their doctor. Not Twitter, not Google, not YouTube, not Cf-ingNN, or FOX or anybody else.

I tried to stay neutral .

 

[markjwyatt]

The same could be said for either existing pharmaceutical firms or any synthesizing firm.

True, but most US firms depend on foreign sources because generic APIs are not very profitable. Kodak supposedly has a contract in hand, and the US government will back them as a means of achieving a national security priority.

 

[wyofilm]

Kodak says it is part of hi normal stock purchase plan.

I hope that is true and I have no reason to doubt it. You are right above - the stock purchase will be fully vetted.

 

[wyofilm]

The same could be said for either existing pharmaceutical firms or any synthesizing firm.

I bet every chemical manufacturing firm in the US has been approached. Some will just get contract work. Some like Kodak will get infrastructure loans AND production contracts. All of this is in effort to bring back critical (thus strategic) industries back to the US. Even more so in the face of this pandemic.

 

[wyofilm]

I hope it at least bailed out some Kodak retirees also. Too bad Ron could not be here to see this day.

Until Hollywood stops buying film because of this deal. The mean orange man had a hand in it after all.

 

[MattKing]

The real challenge with any attempt to restore local production capacity is that for it to work there needs to be acceptance as well of purchasing at something higher than the lowest or "best" price.
If you leave it up to just the market, that won't work well.
So you need subsidies, and you risk running afoul of agreements like NAFTA or its Trump replacement, which prohibits government subsidies in return for granting unfettered access to other markets.
The US currently pays the highest prices in the world for prescription drugs - both proprietary and generic. Just think how high those prices are likely to get if you force purchasing from higher priced local manufacturers.

 

[Pat Erson]

"Kodak Government Deal On Verge Of Collapse: DFC Says "Recent Allegations Of Wrongdoing Raise Serious Concerns"

https://www.zerohedge.com/markets/k...s-recent-allegations-wrongdoing-raise-serious

 

[Nodda Duma]

I see Kodak *still* hasn’t learned its mismanagement lessons dating back to (at least) the 1980s.

 

[jtk]

I wonder if Bauch (formerly Bauch and Lomb) and Apotex will count as US companies.

It seems to be benefitting FUJI in TEXAS at least as much as Kodak (whoever that is) in the frozen north.

 

[David A. Goldfarb]

This thread has required a lot of pruning. It would be good for Photrio to have a place in the open forums to discuss developments about Kodak without it veering off into politics, elections, and the current U.S. administration. Yes, I know it's hard, because everything is political, but for the sake of the forum we've long maintained a policy that those things--no matter how relevant they may be--are best discussed elsewhere, not on Photrio.

Please don't troll and by the same token don't feed the trolls. If you're thinking of posting something that mentions a politician or a person holding elective office, it's most likely off topic for Photrio.

 

[jtk]

David G, thanks for your wisdom and energies.

 

[DonJ]

"Kodak Government Deal On Verge Of Collapse: DFC Says "Recent Allegations Of Wrongdoing Raise Serious Concerns"

https://www.zerohedge.com/markets/k...s-recent-allegations-wrongdoing-raise-serious

Kodak CEO bought 47,000 shares one day before the announcement. He's been a regular buyer, but his timing in this case was incredibly stupid.

 

[wyofilm]

Kodak CEO bought 47,000 shares one day before the announcement. He's been a regular buyer, but his timing in this case was incredibly stupid.

The stock purchase might have been a scheduled purchase, but then one wonders about the announcement timing. We'll see.

 

[GRHazelton]

As someone noted earlier, Kodak has had a specialty chemical division for .... decades! I remember seeing their ads in Scientific American when I was not yet a teenager, a long time ago.

 

[Deleted member 88956]

The real challenge with any attempt to restore local production capacity is that for it to work there needs to be acceptance as well of purchasing at something higher than the lowest or "best" price.
If you leave it up to just the market, that won't work well.
So you need subsidies, and you risk running afoul of agreements like NAFTA or its Trump replacement, which prohibits government subsidies in return for granting unfettered access to other markets.
The US currently pays the highest prices in the world for prescription drugs - both proprietary and generic. Just think how high those prices are likely to get if you force purchasing from higher priced local manufacturers.

Have you seen how drugs are priced for US market? This is what needs to get fixed as pricing has nothing to do with production cost, but is directly linked to health care market, hospital stay costs etc. The only country in the world that gets this raw deal from drug makers. Same drug from same maker elsewhere sells for a lot less and this is openly discussed at press conferences.

 

[Ian Grant]

Have you seen how drugs are priced for US market? This is what needs to get fixed as pricing has nothing to do with production cost, but is directly linked to health care market, hospital stay costs etc. The only country in the world that gets this raw deal from drug makers. Same drug from same maker elsewhere sells for a lot less and this is openly discussed at press conferences.

It's a problem in many countries, here in the UK the NHS pays way more for some over the counter drugs compared to prices we pay in chemists and supermarkets. Of course there are other issues in a largely privatised market like the US there there's no co-ordinated approach.

What's missing from this thread is the details of the close links between Trump and Kodak from the day he took office and the Kodak CEO becoming one of his his economic advisers. From our point of view as photographers it's not ideal if it leads to instability.

Ian

 

[Kino]

Uh oh! The loan is on hold and the stock plunged 30% more!

https://www.cnn.com/2020/08/10/investing/kodak-loan-pause/index.html

 

[George Mann]

I don't see how the deal itself could be unlawful, the big question here is whether or not the CEO is guilty of insider trading?

 

[Rlibersky]

Lucky me I shorted the stock when it went up so stupidly. Even if they get the loan does it warrant a 2500% jump? Probably not. If there was monkey business some heads will roll.

 

[Arthurwg]

Seems like something's gone wrong.....

 

[DonJ]

Probably not. If there was monkey business some heads will roll.

You can't count on that these days.

 

[mshchem]

https://finance.yahoo.com/news/kodak-alert-bragar-eagel-squire-205800436.html

If you want in on the class action lawsuit, get on board. What a nightmare

 

[Kino]

The tread didn't start out that way, but suddenly information emerged that was unavoidably political in nature. I do think enough initial cited information was given for any reader to do their own research.

I don't see how potential malfeasance in a potentially lucrative contract for Kodak suddenly loses its relevance when it's suddenly revealed to have political implications. It could have disastrous results for anyone who wants to continue to have Kodak products in their life.

 

[David A. Goldfarb]

I don't see how potential malfeasance in a potentially lucrative contract for Kodak suddenly loses its relevance when it's suddenly revealed to have political implications. It could have disastrous results for anyone who wants to continue to have Kodak products in their life.

The key is to keep it close to the original topic. If it’s about the administration and Kodak, that’s relevant and fair game, but if it’s about the administration and everything else, then take it elsewhere. Unfortunately, it usually takes only one or two posts to get from the former to the latter.

 

[pentaxuser]

As a photography forum I presume our main concern is the effect it will have on Kodak's continued ability to be a film company.

So if malfeasance is proved what is the likely outcome for Kodak in terms of its viability?. What are the likely consequences and does anyone have any idea backed by real knowledge

Does it make Kodak's future seriously more precarious or is there grounds for believing that little will change? In a nutshell should Kodak film and chemical users be concerned (a) that Kodak will make a smaller range of film and/or need to charge more for its film and chemicals sold under its name or (b) cease to exist as a film maker ?

Thanks

pentaxuser