Eastman Kodak Shorts Get Squeezed
Shares of Eastman Kodak (NYSE:EK) closed over 6.0% higher at $3.05 and were trading as high as $3.17 in after-hours trading. Kodak shares have been volatile since the company mentioned on July 20 that it was soliciting interest for a portion of its patent portfolio. Although there are no fundamental reasons for the stock to pop so strongly, it’s clear the high short interest played a role as many shorts may have been squeezed on the late rally into yesterday’s close. The stock is already down over 4% in today’s trading.
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Kodak currently does not have earnings. The company also trades at a sales multiple of 0.12 which is much lower than its industry rivals.
On the technical front shares trade well below their declining 200 day moving averages and above the declining 50 day moving average. The MACD shows a bearish crossover while RSI is pointing up at 56.