Eastman Kodak (NYSE:KODK) stock is in focus again today. Amid an otherwise declining market, shares are eking out a 2% gain. This move comes on news that Kodak has taken a minority stake in Wildcat Delivery Technologies. Wildcat is focused on developing a breakthrough electric vehicle (EV) “super cell” battery.
The specific “super cell” technology that Wildcat is working on is actually quite intriguing. The company is designing a battery that will provide 90% more energy density over comparable batteries. Over the long term, the hope is this technology will help accelerate EV adoption.
Further, Kodak’s investment in this battery technology company appears to align with other, similar investments. The company’s focus on designing high-quality printers and other tech has allowed it to carve out a unique niche in its industry. Expanding this business model to align with other high-growth sectors appears to be good business.
Let’s dive into whether KODK stock may be worth a speculative look at current levels.
KODK Stock Surges on Key Investment
The stock market isn’t playing too friendly with investors today. June’s consumer price index (CPI) reading showed that inflation hit 9.1% during the month. That’s a fresh four-decade high. For investors in equities, higher interest rates mean higher discount rates — and a higher probability of a recession.
However, on an individual stock basis, investors are always able to find outperformers. Today, KODK stock is one such winner amid the sea of red. It could prove to be a well-timed strategic pick.
All told, the obvious verticals of Kodak’s investment appear to make sense. In fact, in order for the company to survive and thrive, one could even argue an investment like Wildcat should have been made years ago.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
