Hello traders! Barrie Einarson here with today’s exciting market mover: $KODK. Eastman Kodak, a name many associate with iconic photography and more recently as a meme stock, is making waves again—and for good reason.To Subscribe: https://go.trade-ideas.com/SHQ
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The Catalyst

Kodak announced a major financial move: the termination of its overfunded U.S. pension plan. This decision, backed by $3.5 billion in assets against $2.3 billion in liabilities, is expected to deliver an after-tax gain between $530 million and $585 million. The company plans to use this windfall to reduce debt and reinvest in its business.

In another strategic move, Kodak has agreed to sell private equity and other illiquid assets worth $764.4 million to the Mastercard Foundation for $550.6 million in cash, with additional buyers acquiring $87.3 million in assets. These developments have sparked renewed interest in the stock.

The Trade Setup

Our AI alert at $5.93 flagged this opportunity before any major pullback. From there, $KODK soared to $6.70, delivering a tremendous percentage gain. The stock’s ability to hold around the VWAP (Volume Weighted Average Price) has been particularly impressive, signaling potential for further upside.

What’s Next?

At nearly 10% gains from the alert, $KODK is showing strength, with VWAP acting as a key support level. Late-day momentum could lead to another breakout, so it’s worth watching closely.

Key Takeaways

Kodak’s bold moves to streamline its finances are breathing new life into the stock. As traders, the focus now is on how well it holds key levels and whether this momentum can sustain further runs.