Kodak
By Wed, Jul 29, 2020
Hey Scoopers,
The market lost a bit of its Monday’s excitement after investors overcame the second stimulus cheques’ news. — More on that in the “Overall Market” section.
Beyond the overall market, weed stocks are high again, while investors took some of their tech gains. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, Kodak Pharmaceutical is a thing now. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: All three indices finished Tuesday in the red. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price is back under the 11,000, but the hope of Bitcoin hitting $20,000 again is still widespread.
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Monday’s Excitement Eroded
The excitement of the stimulus package faded on Tuesday, and all three indices finished the day in the red.
Weed Stocks Are Going High Again
So, what happened?
Shares of Canopy Growth (Ticker: CGC) were up more than 13% on Tuesday. A few days ago, we discussed the launch of guidelines by the FDA, which may have brought attention to weed stocks. Additionally, analysts are getting ready for the quarterly earnings releases, and hope that the COVID-19 pandemic and shelter-in-place anxieties have boosted the revenue. Canopy Growth has been pushing its virtual presence in the U.S. with the launch of its shopcanopy.com’s website.
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Locking That Gain, We Suppose
So, what happened?
Shares of AudioCodes (Ticker: AUDC) ended Tuesday down by more than 16%. The company “develops and sells advanced and converged voice over IP and data networking solutions, products and applications.” It released its quarterly earnings report and beat expectations both on revenue and earnings. So, what’s up with you investors who are selling off the stock? Is it investors locking their fantastic 60%+ gain year-to-date? We don’t know yet, but we will surely find out in the next few days.
Kodak Pharmaceutical Is A Thing Now
So what happened?
Remember Kodak (Ticker: KODK)? You know, when cameras were these bulky things you bought to take pictures? It’s no surprise to any of us that with the rise of smartphones, Kodak lost its primary source of revenue. However, the company has been hanging around.
The news broke that Kodak just got more than $700 million in loan to pivot to the pharmaceutical business. The company’s market valuation is $120 million, and the loan value is more than seven times its market cap. The plan is for the company to use the loan to manufacture ingredients for American-made drugs. The justification is that the company has extensive manufacturing facilities to produce chemicals and is ready to produce drug ingredients.
Ever wonder who the investors in Kodak were before this loan? They are getting nearly a 200% gain in one day.
Do you own Kodak in your portfolio? Our email address is members@tradestocks.com.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
