Kodak’s stock plummets 40% in pre-market trading!

Shares of Eastman Kodak Co. (KODK.US) plunged 40% in pre-market trading today. Rapid sell-off is followed by reports that Kodak’s $765 million loan agreement with the U.S. government has been put on hold. Kodak is said to be involved in some wrongdoing. The Congress and the SEC are reportedly investigating the deal in terms of its disclosure of the loan on July 27, which caused shares to surge 25% the same day. “Recent allegations of wrongdoing raise serious concerns," the U.S. International Development Finance Corp (DFC) said in a tweet Friday night. “We will not proceed any further unless these allegations are cleared.”

Eastman Kodak Co. (KODK.US) shares surged more than 1,000% amid the loan announcement. In recent days stock was still very volatile. Due to recent allegations, Kodak is set to open with a huge bearish gap today. Source: xStation5

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