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SEC is Investigating Whether Eastman Kodak (NYSE:KODK) Executives Violated Insider Trading Laws

$KODK #Kodak #USA #NYSE #Stocks #Trading #Markets

Eastman Kodak
Ticker: NYSE:KODK
Price: $7.64

Company News

The Securities and Exchange Commission (SEC) is investigating whether Kodak executives violated insider trading laws when disclosing a $765 million loan from the federal government. While the loan was announced on July 28, the company’s stock skyrocketed in price the prior day as the volume of Kodak shares traded increased drastically.

The U.S. International Development Finance Corporation announced on Aug. 7 that it was pausing the loan to Kodak after news of the SEC probe and the announcement of an internal company investigation came out earlier that day.

The Kodak loan was furnished under the Defense Production Act, a 1950 law giving the president broad authority to direct U.S. companies to make specific products during times of national crisis. President Trump invoked the law in April to address shortages of medical products and equipment needed to fight the coronavirus pandemic and tasked Navarro with overseeing its use.

Kodak, as a publicly traded U.S. company, is required to carefully disclose information that will materially affect the price of its stock. The Wall Street Journal reported that Kodak shared news of the loan with reporters in Rochester, N.Y., home of its headquarters, the day before the formal government announcement without specifying it could not be published until then.

Business Summary

Eastman Kodak Company is a global commercial printing and imaging company with technologies in materials science, digital imaging science and software, and deposition processes.

The Company provides hardware, software, consumables and services to customers in graphic arts, commercial print, publishing, packaging, electronic displays, entertainment and commercial films, and consumer products markets.

The Company operates through seven segments: Print Systems, Micro 3D Printing and Packaging, Software and Solutions, Consumer and Film, Enterprise Inkjet Systems, Advanced Materials and 3D Printing Technology and Eastman Business Park.

The Print Systems segment comprises two lines of business: Prepress Solutions and Electrophotographic Printing Solutions.

The Micro 3D Printing and Packaging segment comprises two lines of business: Packaging and Micro 3D Printing.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 8.18.

The projected upper bound is: 19.83.

The projected lower bound is: -4.35.

The projected closing price is: 7.74.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 17 white candles and 30 black candles for a net of 13 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 6.4642. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.03. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 11 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -87. This is not a topping or bottoming area. The last signal was a sell 11 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

EASTMAN KODAK CO closed down -0.790 at 7.640. Volume was 10% below average (neutral) and Bollinger Bands were 441% wider than normal.

Open     High     Low     Close     Volume
8.340    8.350    7.560   7.640     1,414,265
Technical Outlook
Short Term:        Oversold
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period      50-period       200-period
Close:           11.60          6.07            3.58
Volatility:      194            524             281
Volume:          3,361,864      2,785,428       734,475

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

EASTMAN KODAK CO is currently 113.2% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of KODK.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on KODK.N and have had this outlook for the last 15 periods.

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