Wednesday was a huge day for shares of Eastman Kodak, which rose more than 300%, closing at $33.20 per share.
The big run-up, which followed the tripling of the share price on Tuesday, came after the announcement this week that the federal government will loan Kodak $765 million to help it gear up to produce ingredients used in generic drugs.
George Conboy from Brighton Securities said it’s not a total surprise that Kodak stock is skyrocketing.
"You’ve got investors hungry for good news, and this is certainly good news for Kodak," Conboy said. "Whether that news is good enough to sustain a rise this vertical is a real concern for investors".
One of Conboy's clients recently bought some Kodak stock. He did not want to be identified, but Conboy said the client likes what he’s heard so far about Kodak’s move into pharmaceuticals.
“I have patience, and hopefully it’ll turn around. I’m 94 years of age, so I don’t have a lot of time left," the client said.
Asked whether he believes that he'll see some profit during his lifetime, the client said, "I plan to, that’s the reason for my investment.”
Conboy said his advice generally is that if an investor wants to put a modest amount of money into the stock, into what is a speculative situation, that’s okay as long as they don’t go into the investment assuming the stock will continue to soar.
