What happened

Shares of Eastman Kodak (NYSE:KODK) rose 10.3% in November, according to data from S&P Global Market Intelligence. The stock climbed in conjunction with momentum for the broader market. 

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Kodak posted third-quarter results on Nov. 10, with sales coming in at $252 million for the period (down 20% year over year) and the company reporting a $13 million sequential increase for its cash balance. However, the earnings report doesn't appear to have had much of an impact on the stock's performance, and record-setting gains for the broader market appear to have been the biggest factor behind last month's double-digit rally. 

Blocks with arrows pointing straight ahead, up, and down.

Image source: Getty Images.

So what

Investors buying Kodak stock are probably more focused on the drama surrounding the company's push into chemicals production than the business's recent sales and earnings results. Kodak stock soared in July following news that it had a secured a $765 million loan from U.S. International Development Finance Corporation (DFC) to produce generic chemicals used in the production of hydroxychloroquine, a drug that had been touted as a potentially effective treatment for the COVID-19 respiratory illness.

However, the loan was paused following allegations of insider trading at the company and malfeasance by DFC officials, prompting steep sell-offs for the stock. Kodak stock has seen volatile trading as news related to subsequent investigations has emerged. 

Now what

Kodak has skyrocketed in December's trading. The company's share price is up roughly 62.5% in the month, as of this writing, thanks to renewed optimism about the loan and the business pivot to chemicals production.

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The Wall Street Journal published a report on Sunday indicating that the U.S. International Development Finance Corporation had found no evidence that DFC officials had broken protocol in setting up the loan to Kodak. The finding seemingly improves Kodak's chances of securing the contested loan.  

Kodak stock has climbed roughly 152% this year despite volatile swings, and the company now has a market capitalization of roughly $907 million. 

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