Eastman Kodak: Next Insolvency?

[traveler_101]

I've explained in detail the situation when producing film even with a loss might be beneficial. It was explained in a was that even someone with no background in economics would understand. Even then you didn't understand and yet you have the guts to call on my knowledge of economics. Absurd.

Now your sources tell you that there is no supply agreement between KA and EK?! I have to tell you, your sources know nothing. And you obviously have no grasp on how much influence a $3bln creditor can have on a $1bln business.



Except you, obviously.

In 2014 they saw a dwindling (yet still profitable for some years) demand and they wanted to stop producing film while it was still highly profitable?! Not even Kodak is crazy enough not to take $200m from the table. Yet, you still believe some PR bu****** over simple business logic...

Talking sense to you is futile.

Wow that's a heavy artillery barrage. I guess the other guy has a dug a deep foxhole and will eventually pop up again.

Seriously, let me just ask you a question. I see your point about operating at a loss to offset liabilities.

"For Eastman Kodak it may still be better to produce film even at a loss. If you don't have much knowledge of basic economics just imagine a situation where EK must pay KA $100m in film supplies. If EK must spend $150m to produce film for themselves and KA then EK only has to earn $51m by selling film on the market. It's economics 101 - even only covering variable and some part of fixed costs is still better than shutting down the production."

But how long is EK bound by a Chapter 11 agreement? Even if the agreement should last until EK liquidates its financial liability to KA doesn't its fulfilment ultimately depend on EK's ability to get financing for operating. I mean operating at a loss makes economic sense, as you say, but doesn't that also depend on a bank's or financier's willingness to back the firm - which itself depends on some faith or calculated belief that the firm will turn it around? At some point if EK doesn't turn a profit the bank pulls the plug - right?

 

[Ted Striker]

Just wait until 2019. That year Kodak HAS to buy back all its preferred stock at $17.50/share unless magically their common stock is at that price. Kodak has nowhere near the available cash to make that conversion and so that is why it is one of the most shorted stocks out there. That's also why we see such hair brained schemes like Kodak Coin. These are very very desperate times.

 

[sepiareverb]

But 3200!

🙄

 

[Phil_F_NM]

Putting aside the usage of film for video...

Film is film. Motion picture film. Video is video. Electronic capture.

Phil Forrest

 

[Corran]

Great, pedantry. I'm out.

 

[Ted Striker]

Kodak shares getting pounded hard today, -12% in heavy trading. This after -20% the past 5 days and a whopping -52% the past 30 days.

Kodak Coin to the rescue?

 

[KM-25]

Just so you are all aware, if the unusually blowhard style of anti Kodak sentiment made above this post looks familiar, it's because it probably is.

This is from a person who does this type of thing to the point of making people on other forums want to either punch a wall or vomit, he was banned from here under his old screen name. On that note, the person's normal screen name is "Rattymouse" and is active also at APUG and Fredmiranda.

Just ignore the online photo world’s biggest troll and you’ll be fine. And so will Kodak for that matter…

 

[ptpdprinter]

Just so you are all aware, if the unusually blowhard style of anti Kodak sentiment made above this post looks familiar, it's because it probably is.

This is from a person who does this type of thing to the point of making people on other forums want to either punch a wall or vomit, he was banned from here under his old screen name. On that note, the person's normal screen name is "Rattymouse" and is active also at APUG and Fredmiranda.

Just ignore the online photo world’s biggest troll and you’ll be fine. And so will Kodak for that matter…

None of which changes the fact that Kodak's stock is down again today, for those who may be interested.

 

[KM-25]

None of which changes the fact that Kodak's stock is down again today, for those who may be interested.

His incessant negative commentary about Kodak is very rarely empathetic, so he seems to really take joy in spreading bad news among those who care deeply about this craft and the company.

Who the hell benefits from that kind of delivery, facts or not? Certainly not this community I would imagine.

 

[bluesun267]

I agree wholeheartedly with KM-25.

I hate this thread.

I spent the better part of the last 2 decades worrying about the imminent demise of film and I'm done. The fact is no one posting here has special powers, anymore than anyone did in 2012, 2005, 1999 or 1899.

 

[Ted Striker]

None of which changes the fact that Kodak's stock is down again today, for those who may be interested.

Well, when you can't deal with reality, shoot the messenger.

 

[bluesun267]

Well, when you can't deal with reality, shoot the messenger.

Ready, aim, fire!

 

[Bill Clark]

I hope the title of this thread doesn’t happen.

Stock price is only one indicator. And to measure it only for a day, doesn’t give me much of an impression; tho some pundits, looking for eye balls to watch or read their report seem to get more sometimes, when they believe they are ringing the alarm bell. Today the dow went down 380.83 points, not a good indication of anything. Unless you base your decisions on one day. Then go for it.

I base my investments on what it will do for decades.

 

[HHPhoto]

Just so you are all aware, if the unusually blowhard style of anti Kodak sentiment made above this post looks familiar, it's because it probably is.

Daniel, to whom you are referring, which person do you mean, "Ted Striker"?

Cheers, Jan

 

[Ted Striker]

I hope the title of this thread doesn’t happen.

Stock price is only one indicator. And to measure it only for a day, doesn’t give me much of an impression; tho some pundits, looking for eye balls to watch or read their report seem to get more sometimes, when they believe they are ringing the alarm bell. Today the dow went down 380.83 points, not a good indication of anything. Unless you base your decisions on one day. Then go for it.

I base my investments on what it will do for decades.

You are correct, a single day is not indicative of much. That is why I described the past week and past month (-44%). I'll add the trailing year as well, -64%. The trend is pretty clear.

Using a time frame of decades is not rational. No one could have predicted the first bankruptcy of Kodak in that time frame and would have lost 100% of their investment.

 

[Ted Striker]

Ready, aim, fire!

😱 You got me!

 

[ian_watts]

Ready, aim, fire!

Maybe you could arrange a firing squad so that more of us could take part?😀

 

[valdas]

Maybe you could arrange a firing squad so that more of us could take part?😀

If you are shooting, shoot film...

 

[mani]

There's a lot of hate for Kodak on this forum, but if I wanted to be in this business, I'd rather be selling film right now, than digital cameras...

 

[ptpdprinter]

There's a lot of hate for Kodak on this forum...

Abandonment issues?