Eastman Kodak's (KODK, $14.88) shares plummet, after $765 million loan gets blocked

Shares of Eastman Kodak Co. fell about -40%, after the U.S. government blocked a $765 million loan to the company.

The U.S. International Development Finance Corp (DFC) was planning to make the loan to the technology and pharmaceutical company.The loan was supposed to be going towards making drug ingredients for use in possible COVID-19 vaccines. But the loan was blocked  because of “alleged wrongdoing” by executives. Democratic lawmakers asked federal regulators to investigate securities transactions made by the company and its executives.

“Recent allegations of wrongdoing raise serious concerns,” U.S. International Development Finance Corp (DFC) tweeted on Friday.

Tickeron's analysis of KODK:

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.

The Momentum Indicator exceeded the 0 level on July 21, 2020. Traders may consider buying the ticker or exploring call options. In 73 of 102 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 72%.

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where KODK's MACD histogram became positive, in 27 of 35 cases, the price rose further within the following month. The odds of a continued Uptrend are 77%.

The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 25 of 39 similar backtested cases where KODK's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 64%.

The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on July 28, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 11 of 15 similar cases where KODK's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 73%.

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 20 of 26 cases where KODK's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 77%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 29 of 37 cases where KODK's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 78%.

The Aroon Indicator entered a Downtrend today. In 218 of 248 cases where KODK Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 88%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 54%. During the last month, the daily ratio of advancing to declining volumes was 2.04 to 1.

The Tickeron Valuation Rating of 9 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: KODK's P/B Ratio (-26.01) is very low in comparison to the industry average of (2.61). P/E Ratio (1.40) is within average values for comparable stocks, (112.29). Projected Growth (PEG Ratio) (0.02) is also within normal values, averaging (2.38). Dividend Yield (0.00) settles around the average of (0.19) among similar stocks. P/S Ratio (0.06) is also within normal values, averaging (4.43).

The Tickeron PE Growth Rating for this company is 13 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. KODK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KODK’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock worse than average.

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