Eastman Kodak (KODK) , which has jumped 300% from around $3 to over $12 in the last two days is a good case study in some of the wild short term trading that has occurred since around the end of November.
What triggered the move was an announcement that KODK was going to establish a blockchain digital ledger that would allow ownership rights to be attached to photographs and for the photographers to be paid royalties in the form of a cryptocurrency. It would prevent unauthorized use as the photos could be tracked with blockchain.
Obviously a good idea but none of this exists yet and it is likely that companies that provide stock photos will try to do the same thing.
The CEO of KODK has pointed out that the move in the stock is probably not justified but none of these fundamental issues much matter to the active traders in the stock.
What you have to understand here is that traders are not focused at all on the business. They are focused on other traders. The only reason to keep buying is if you feel there will likely be more buyers that are willing to pay a higher price. If you are trying to analyze the stock based on balance sheets and cash flows you are clueless. It doesn't matter right now. What matters is 'blockchain' and "Initial coin offering'.
I have no qualms about trading stocks like this. They are very high risk but offer very high returns. At some point they will die an ugly death but the 'experts' almost always underestimate the power of momentum in trading like this. Take a look at Riot Blockchain (RIOT) which was supposed to collapse long ago. It is still up substantially and may actually set up for another trade.
Maybe this sort of trading is a sign that the market is close to an ugly top but that isn't today's concern. Today's concern is finding some good trades and stuff like KODK has been paying off for aggressive speculators.