ROCHESTER, NY – Brighton Securities chairman George Conboy has said people buying Eastman Kodak stock right now could take the plunge.
“Time will tell if the loan will take place,” Conboy said. “Time will tell if Kodak can do it. And time will tell if investors made a smart bet in buying these stocks. Far too early to know today.”
Even though the US International Development Finance Corp found no conflict of interest in its investigation, Conboy said there was no guarantee that the $ 765 million federal loan for the company to start manufacturing pharmaceutical products is always respected.
“If I were to read the tea leaves on this deal, I would suspect the loan has become political enough that a change in administration could mean the incoming administration has other priorities or chooses not to make the loan. .I wouldn’t bet my money this is going to happen, ”Conboy said.
When the deal was first announced in July, White House Trade Advisor Peter Navarro said it happened in “Trump’s time”, hailing it as a victory for the administration. Trump. That’s why Conboy thinks it’s become political.
Kodak CEO Jim Continenza said the company plans to move forward with its pharmaceutical business regardless of the outcome of the government’s plan. Conboy said he believes the company wouldn’t be able to do it without the loan.
“It would be great if Kodak could expand into this line of business,” said Conboy. “However, it will be difficult for them as a business to get the capital to do so unless they can get that loan. They don’t. Seems likely the market will provide the kind of capital. that Kodak needs for this business. ”