Eastman Kodak: Next Insolvency?

[Ted Striker]

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...

This is a thread about a stock price. I can't see any hate here. You are imagining it. Only you can understand why you need to invent what is not there.

The only way someone would hate Kodak here would be if they invested a lot of money in Kodak and then watched their investment dwindle down to nothing as their equity vanished.

I dont invest in speculative stocks like Kodak. Analysts have given Kodak shares the lowest possible rating. Additionally, Kodak has the lowest rated bonds as well. Those are pretty clear signs for me to not put my money there. Others with greater tolerance for risk (and loss), might feel differently. All power to them.

 

[mani]

I'm with KM-25 on some of the participants on this thread.

 

[HHPhoto]

This is a thread about a stock price.

No, it is not. At least not exclusively.
As I am the OP, I can clearly say my intention was not a discussion focussed on stock prices.
My intention was to discuss the whole current situation at Eastman Kodak and whether or how it could affect us film enthusiasts and Kodak film customers.

Cheers, Jan

 

[Ted Striker]

No, it is not. At least not exclusively.
As I am the OP, I can clearly say my intention was not a discussion focussed on stock prices.
My intention was to discuss the whole current situation at Eastman Kodak and whether or how it could affect us film enthusiasts and Kodak film customers.

Cheers, Jan

Your point is well made. The title of the thread is insolvency and so that can be discussed in many different ways, only one of which is the stock price. The price that the market assigns share value is a *forward* looking price and so is a predictor of future value. As the share price drops precipitously it is a strong indicator of the poor health in any company. However, it does not indicate an actual failure until other events also take place.

 

[Ted Striker]

By the way, Kodak reports their earnings on 3/7. The last report was pretty bad, showing across the board drops in revenue and losses in many of their businesses. Analysts predict more of the same, with even heavier losses. However, the reality will come from Kodak, not the analysts. Perhaps there will be a surprise move to the upside.

 

[valdas]

As the share price drops precipitously it is a strong indicator of the poor health in any company.

No, not necessarily. Very often general stock market trend affects individual company stock prices even if it is a company with the good financial health and strong fundamentals (especially during a significant market correction/crash). Of course, if the drop is in contrast to the overall market direction...

 

[Ted Striker]

No, not necessarily. Very often general stock market trend affects individual company stock prices even if it is a company with the good financial health and strong fundamentals (especially during a significant market correction/crash). Of course, if the drop is in contrast to the overall market direction...

There are suitable reference points that investors can use to judge the financial health of a company. The overall market was up nearly 20% last year while Kodak fell -60%. I doubt anyone would suggest that such a dramatic fall in share value has anything to do with market trends and instead has only to do with the poor financial prospects of Kodak. They chose to compete in commercial printing as their core business. That market is in decline true, but I see no evidence of their competitors falling in share price by anywhere close to 60%.

 

[mani]

Troll warning all over this now.

 

[ptpdprinter]

How is he a troll in a Kodak bankruptcy thread? He's talking about Kodak's likely bankruptcy. Now, if he said everything is going swimmingly, that would be a troll.

 

[Ted Striker]

How is he a troll in a Kodak bankruptcy thread? He's talking about Kodak's likely bankruptcy. Now, if he said everything is going swimmingly, that would be a troll.

I've posted nothing but facts and opinions based on the topic of this thread. A thread that I did not even create. My responses in posts where I quote someone have been nothing but respectful.

I'd say that the people who cannot handle this fact are instead the trolls. It is they who are entering threads and trying to disrupt them and this forum. Rather than argue against the statements made in the thread, they launch personal attacks.

It is transparent.

 

[Skiff]

We must have a look in the coming days at the Q4 results of Eastman Kodak.
They will be published on their webpage:
http://investor.kodak.com/

Then we will know more precisely how the situation at Kodak is developing at the current stage.

 

[Ted Striker]

We must have a look in the coming days at the Q4 results of Eastman Kodak.
They will be published on their webpage:
http://investor.kodak.com/

Then we will know more precisely how the situation at Kodak is developing at the current stage.

The results are out and it is more of the same from Kodak. Total revenues continue to decline and the film and consumer division are losing more money than ever, from -2 million dollars to -6 million dollars.

Consumer and Film Division (CFD) revenues for the fourth quarter were $47 million, flat compared with Q4 of 2016. Operational EBITDA declined from negative $2 million to negative $6 million.

For the year, revenues for CFD were $198 million, down from $221 million in 2016. Operational EBITDA for the division was down $32 million for the year, driven by the continued expected decline in the consumer inkjet business and higher film manufacturing costs associated with a vendor transition.

 

[creenus]

This is the sort of thread that makes me wince. Angry crabbed people hurling insults at each other. Yecchh ...

Almost makes me miss Roger's ranting. 😉

Almost.