Did Eastman Kodak Company Just Get Bailed Out?

Eastman Kodak (KODK) just popped around 300% today, but has been slowly pulling back given the outsized leap. The company is currently trading at a $406 million market cap, up from the sub-$100 million market cap it was sporting yesterday.

The news propelling this company forward is the potential $765 million government loan to help them producer generic drug materials & chemicals. Note the word potential as nothing has been actually verified and confirmed.

https://www.thestreet.com/investing/kodak-kodk-stock-government-loan-generic-drugs

Despite being a blast-from-the-past champion, the company had actually been improving its balance sheet a bit over the past few years as noted in the increasing shareholder equity. Yet it continues to be heavily outweighed by liabilities, and it's a curiosity that they would get such a large loan from the government for a line of business that seems a bit outside of their primary line of business which resides in print-related technologies.

As understandable as it would be for some of the chemical segments to translate into drug-related businesses, to have such an outsized loan amount on the line seems a bit odd to say the least. It would be nice if its true, but call me skeptical until all the "i's" are dotted and the "t's" are crossed...

Posted Using LeoFinance