BBTrader29

KODK Snapback

Short
NYSE:KODK   Eastman Kodak Company
KODK had a massive run up on news, now we are seeing the sell off post news. It became extremely overbought and overextended beyond the bollinger band zone. I expect it to fall back to $18 before it can stabilize again. It had a 110M market cap before the news dropped of a 750M loan. On its run up to 60/share it became a 2.5 Billion market cap. A proper evaluation after a loan of that magnitude is around an 860 million market cap if you include the new loan, with 44million shares available that makes a proper valuation around 18-20/share. On the chart you can see how it gapped up to 18/share before it ran up to overextended levels.
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