Eastman Kodak Company (EK)

printers will drive revs

Going for a come back

Rated 1 star.

Weak Group Rotation Pick

cnbc.com 20 Stocks with the Biggest Potential To Drop target price: 2.94

Right now, the market cap of this company is less than 10% of the annual revenue. This company is in the process of reorganizing and is much leaner and meaner. This stock will explode in the future after their pipeline of new products is released and the earnings explode.

new ink technology

bull

This portfolio tracks the performance of good vs. evil companies.

Evil attributes:
-5th worst polluter in U.S. (http://www.peri.umass.edu/toxic100_index/)
-Expelled from Better Business Bureau

This is a bit speculative for me based on the possibilities for OLED; which are admittedly arguable. I'm betting that the negative aspects of OLED will get worked out to the point that one of two things will happen:

* The tech itself will become price competitive and have enough quality to compete with other methods of creating larger screens.

* New applications will be found and the market for smaller screens where it does work well now will expand whenever we finally reach some economic recovery.

My assumption? That their patents and licensing deals are solid resulting in great deals and royalties, etc. (And others won't find end run ways around patents of substantially different tech that leapfrogs.)

Risks besides those mentioned: Other under performing businesses don't suck all the wind out of them.

I'm going to nibble a bit at $2.62.

Thoughts?

This stock was chosen as part of a group of stocks based upon criteria which focused heavily on dividend yield, cash flow, and balance sheet information.

Film is dying and they have already sold off the majority of their profitable businesses to ITT, J&J, Hidelberg, Carestream, Kodak Chemical, & others including pharmacuticals. Also, film no longer has the 50+ % profit margin that it had in it's hey day. When movie theaters go all digital there won't be enough demand left to continue coating film at all. The technology is there now, but it is not economical for theater owners to invest that much to go digital. The producing/distributing companies make/risk most of the profits while the theaters are left with the concessions (popcorn) as their profit centers.

Contrary to popular opinion, Kodak pioneered digital photography (largely with space/government applications). However, they were faced with a deadly dilemma. Pioneering and promoting consumer and commercial digital photography would shorten the life of their cash cow (the world leading film) and allow others to quickly build on their technology. Continuing to promote film for these applications would allow others to have a major foothold in the new field while the film business tapered down. They chose/defaulted to the latter.

Kodak still has some great research but has not demonstrated the ability to bring any of it to market so they are not using the Kodak Brand franchise for any benefit. In fact even research has recently been crippled by outsourcing and laying off machinists and model makers. The scientists/engineers and others are not allowed to use drill presses, milling machines, etc. so much effort is dead in the water.

Kodak built it's name and Brand thru marketing but they don't have any the marketers left and far less capability. They reported that they tore down and imploded 200 buildings (many very large and modern) last year to get them off the tax roles as well as selling off a very large manufacturing complex about 5 years ago. This is a long way from the company that was part of the Dow 20. They used to increase dividends regularly, finance research and new products from earnings, pay a wage dividend to employees based on earnings and carried no debt. They are trying hard to be a very lean efficient company but they still have some of the responsibilities of their former structure and have yet to find a way to materially cash in on what was once rated the top Brand name in the USA.

for kcks, I'll grab a few. Will make money.

Projected revenue, EPS, and dividend contraction show lack of management confidence in the company's future. Also, I haven't seen Kodak cameras nearly as often as Sony, Canon, or any other digital camera for that matter. Photo paper is not enough to keep this company afloat. Big red thumb.

trend PS test

Call me silly, but I just came back from vacation and everywhere I went I saw Kodak products. I don't just mean consumer level cameras in kiosks, but everywhere. I was impressed by the speed and quality of the print of a souvenir picture taken after I choose it from several taken on a monitor. I asked what the printer was and was told it was a Kodak 6800 Dry Process printer. That made me look again at this company on my return. Yes, it is a risky call; yes, they have been under performing for a while; yes they are predicting a loss over the short term; yes, they have had to adjust debt; but, they have been around a long time and they are not just the "film" company they used to be. I think they will not only survive, but come out of this as a leader in digital imaging and more importantly a leader in my CAPS scoring.

High debt, constantly decline revenue. The business is facing a big challenge and couldn't meet the earning expectation. It looks Kodak couldn't adopt the fast developing market and find the business path. Compare all the key finical ratio with the competitors and the industry, future cash flow and business growth is under question.

I think the worm has finally turned on this one. Up 28% and 20% the day before. Volume is very good going up. The company CFO just let the employee's know that the company's in good shape. 2 billon in cash and only 1.3 billion owed. It really looks like a good stock for a take over as the market cap is only 960 million.

Never caught onto the digital camera revolution and, in my opinion, is not likely to recover.

The final nail in the coffin will be when cinema goes digital, which will happen in the next 5-10 years.