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Another Kodak Moment: SEC Probing Kodak Loan Disclosure, Stock Surge

Old_JoeOld_Joe
in Other Investing
The Wall Street Journal is reporting that the SEC is probing the Kodak loan disclosure and stock surge

Selected excerpts from that article:

The Securities and Exchange Commission is investigating the circumstances around Eastman Kodak’s announcement of a $765 million government loan to make drugs at its U.S. factories, according to people familiar with the matter.

The price spike briefly produced a potential windfall for company executives who owned stock-option grants, some of which were granted on July 27, the day before the loan was officially announced.

The SEC’s investigation is at an early stage and might not produce allegations of wrongdoing by the company or any individuals, the people familiar with the matter said. Among the areas being probed by regulators: how Kodak controlled disclosure of the loan, word of which began to emerge on July 27, causing Kodak’s stock price to rise 25% that day.

Comments

  • msf
    "some of which were granted on July 27 the day before the loan was officially announced."

    As I wrote a few days ago, let's put that "some" in perspective.
    On July 27, right before the news hit Kodak granted options with an average exercise price of $4.67 (most with a $3 exercise price) to company insiders amounting to about: 1.75M to James V. Continenza, Chairman and CEO, 45K to each of David E. Bullwinkle CFO, Roger W. Byrd VP, and Randy Vandagriff, VP
    https://www.secform4.com/insider-trading/31235.htm
    KODK traded as high as $60 after the options were granted. The inflated price may fall all the way back to earth (it's down to $14.40) before these execs cash in by exercising their options.
  • Old_JoeOld_Joe
    Not only that, but how could anyone named Bullwinkle be suspected of anything nefarious? :)
  • carew388carew388
    Yes-were Rocky, Natasha and Boris granted options as well?
  • Derf
    Probably !! Plus a few more !
    No option here, Derf
  • Old_JoeOld_Joe
    Mark my words: Snidely Whiplash is behind this somehow, from his current position as a White House advisor.
  • carew388carew388
    Is that Larry Kudlow with a handlebar mustache?
  • Old_JoeOld_Joe
    edited August 2020
    Stephen Miller, I'm thinking.

    image

    Just add the mustache!

    image
  • msf
    Love OJ's pictures.
    Shares of Kodak plunged Monday after a US agency suspended a loan intended to support the former photo giant's launch of a new pharmaceutical venture.
    ...
    The Wall Street Journal has reported that the Securities and Exchange Commission is investigating Kodak's disclosures about the loans and is expected to probe the company's awarding of stock option grants to executives on July 27.
    Agence-France Presse wire story.
    https://au.finance.yahoo.com/news/kodak-shares-slump-us-loan-195029583.html

    WSJ article cited in report:
    https://www.wsj.com/articles/u-s-agency-sidelines-planned-765-million-loan-to-kodak-amid-probes-11597018204
  • MikeMMikeM
    I've talked to a few of my ex-Kodak friends and we are all heart sick about this. If anyone knows Kodak's history, management has sucked for at least the last 30 years. This greedy bastard-CEO fits that bill completely.
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