3 Reasons to Sell Eastman Kodak Now
In July, Eastman Kodak (NYSE: KODK) stock soared by more than 1,000% on news that it would be receiving a $765 million loan under the Defense Production Act to manufacture active pharmaceutical ingredients (APIs) for generic drugs. Not even three months later, the stock is now down more than 70% from its all-time highs, resulting in devastating losses for investors who bought at the wrong time. There are now multiple class action lawsuits pending against Kodak.
When a struggling company fails to turn around, its inability to properly handle opportunities is often one big reason. Let's look at three red flags facing Kodak, and why investors should stay well away from the stock.
Image Source: Getty Images.
Source Fool.com