2 Reasons to Sell Eastman Kodak Stock
Shares in Eastman Kodak (NYSE: KODK) have been resuscitated after an internal probe found no evidence of insider trading before the announcement of a $765 million defense production loan to help the company manufacture key pharmaceutical starting ingredients. But while Kodak looks red hot, investors should think twice about hopping on board. The company still faces an ongoing SEC probe into potential wrongdoing, and its poor operating results leave little to fall back on if the deal falls through.
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On Sept. 15, law firm Akin Gump announced the findings of its review into the actions of Kodak and its directors and executives in the lead-up to the company's defense production loan announcement on July 28. Among other issues, the probe focused on whether CEO Jim Contineza engaged in insider trading by purchasing Kodak shares in June, as well as the legality of Kodak's decision to award stock options to Contineza and other executives on July 27.
Source Fool.com
