Sunday April 11, 2010
I suggested using Eastman Kodak for our study of price earnings ratios.
Gee the price of the stock has doubled since last summer, heck it doubled since last november,
why? Here is a link to their earnings picture. But more than that is going on, EK also reflects the desire of consumers to spend money. Social Mood is a part of the picture here. Let's take another step back at the bigger picture.
The vertical bars at bottom represent volume in the stock. As you can see, the black bars picked show a huge increase in buys pushing the stock price higher. Note the horizontal blue arrow. It spotlights the $7.50 area. One can see the stock hesitated there on the way down, that will no doubt serve as resistance now on the way up. So we have positive social mood, see below, coupled with improved earnings, but a long way to go to recover.
This indicator was created by Bloomberg Business Week. Optimism index has doubled in the last year, this help consumer oriented firms like Kodak.
Professor Elam 
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