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I was wondering if anyone has considered doing a short play on Kodak?
I know there was a bankruptcy rumor and stock is quoting around 0.47
Now, they do hold about 20 thousand tech patents and I would believe it can be a good takeover target.
Any thoughts?
The takeover rumors have been there for many months but no buyers. It is almost too late for a buyer.
I'll confess my sins on EK.
When the stock was higher I bought Jan. 2013 $3 calls. Paid 87 cents and they are now worth maybe 5 cents. I did buy $3 puts and $1 puts and made a little on those, along the way. Yesterday I was going to buy 1000 shares for 40 cents.
Then I decided to go with the April 50 cent calls for 22 cents. Better to lose 22 cents than 40 cents.
I've been watching Kodak since the legal matter started. The court was to rule in late October but the judge presiding died, or retired. He was anti-Kodak in their suit against Apple and Rimm. So, getting a new judge sounded good. The court ruling was scheduled by Dec. 31st. Then the bomb shell that the court was going to delay another 9 months to Sept.
The stock took a hit because the rumors were that Apple or Rimm would want to buy the stupid company for a measly $1B or $1.5B in order to avoid losing in court. And Bill Gates is connected to Kodak in some way. Maybe on their BOD?
For $5.00 per share or only $1.2B, you can have all their patents, their existing printing business and the Kodak name which is over 100 years old. And seen in all major cities world wide. I visit remote areas of Asia and see Kodak everywhere I go.
So, why have none of these deep pocket companies willing to pay $5 per share or even $4?
The news yesterday was that if they can not sell the patents in the next few weeks, or by early February, they will declare bankruptcy.
That eventually means shareholders get nothing.
So, I am risking $220 that the patents will get sold. Even though I know the CEO has ruined this American icon and will only use the money he gets from the patents to try to get the company back where he wants it. Unfortunately he is 5 years behind the times, as far as technology.
An analyst on CNBC said the patents were worth $1.0-$1.5B but the sale of those would best be done after a bankruptcy, so it would not help shareholders. Part of EK's problems are their benefits packages for the thousands of employees they have hired in the last 100+ years. They are losing money every quarter and just borrowed about $500M a few months ago, and that sent the stock down.
So, if you wish to speculate on a patent sale before a bankruptcy, then buy some shares or some options. However, this is high risk. Usually the good assets that a sinking company has, are sold after the bankruptcy to pay their debts, etc. and not to give to shareholders.
I know my $220 is down the toilet but what the heck.
If you want a get rich or die trying biotech, check my new thread.
I would think CEO was an idiot to kill such an iconic brand.
Now, what would happen to Kodak Theatre?
Anyways, probably, no one is interested in their patents, because they are really printing related, for eg, "reducing grease on blah blah.."
I will check out you Biotech thread..I was looking for some penny stocks too..I thought, odds are better here than a power ball ticket
$4 per share by Apple gets Apple out of the legal action between EK and Apple. It then lets Apple keep the legal action between EK and RIMM.
Also, $1B to Apple is pocket change.
They have more cash than any company in the world.
EK has patents for digital photos, for digital cameras.
Why does Apple not want Kodak technology on their phones?
Also, Samsung is in a bitter war against Apple.
Samsung is filthy rich too. I am puzzled as to why no one buys EK.
Unless they think they can buy the parts in the banktruptcy court which leave shareholders with $0.00.
The EK CEO has a big ego and he thinks he can turn the company around. He has had since 2005 and has failed. This stock was over $9 in 2010.
Now 41 cents due to the CEO.
I have a good risk/reward options trade on Groupon. Will post of the Groupon thread.
$4 per share by Apple gets Apple out of the legal action between EK and Apple. It then lets Apple keep the legal action between EK and RIMM.
Also, $1B to Apple is pocket change.
They have more cash than any company in the world.
EK has patents for digital photos, for digital cameras.
Why does Apple not want Kodak technology on their phones?
Also, Samsung is in a bitter war against Apple.
Samsung is filthy rich too. I am puzzled as to why no one buys EK.
Unless they think they can buy the parts in the banktruptcy court which leave shareholders with $0.00.
The EK CEO has a big ego and he thinks he can turn the company around. He has had since 2005 and has failed. This stock was over $9 in 2010.
Now 41 cents due to the CEO.
I have a good risk/reward options trade on Groupon. Will post of the Groupon thread.
If available, have you considered preferred shares?
If available, have you considered preferred shares?
I have not found any preferred shares. This story mentions 1 preferred share was paid to shareholders back in early August. I entered the stock after that dividend date.
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August 1, 2010
We previously listed Antonio Perez as a CEO that needs to be let go.
I am puzzled as to why no one buys EK.
Unless they think they can buy the parts in the banktruptcy court which leave shareholders with $0.00
This confuses me too. I mean I get that they want to buy the parts in bankruptcy court and "get a better deal," but really, can they? The equity trades for almost nothing, anyway, and I would imagine they could get a better deal on a full package at this point. My guess is that patent sales for EK will be highly competitive much like patent sales have been for many other companies in recent memory.
The reason people don't want to buy the patents now is of fear that they will buy them and get locked up in bankruptcy court. But this is not an issue if they simply buy the whole company.
Personally I am with you, I don't really understand why this company wasn't sold off long ago. Perhaps, much like with Yahoo, it is delusional management, as you mentioned...
Why isn't there a shareholder revolt or something? Why wasn't there a revolt a couple years ago when companies were getting acquired for patents while EK was in freefall?
This confuses me too. I mean I get that they want to buy the parts in bankruptcy court and "get a better deal," but really, can they? The equity trades for almost nothing, anyway, and I would imagine they could get a better deal on a full package at this point. My guess is that patent sales for EK will be highly competitive much like patent sales have been for many other companies in recent memory.
The reason people don't want to buy the patents now is of fear that they will buy them and get locked up in bankruptcy court. But this is not an issue if they simply buy the whole company.
Personally I am with you, I don't really understand why this company wasn't sold off long ago. Perhaps, much like with Yahoo, it is delusional management, as you mentioned...
Perez the CEO is the problem.
If they go into bankruptcy, the court will "sell" assets to pay people owed money.
After bankruptcy, Nortel patents and patent applications were sold to a consortium consisting of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony, for a cash purchase price of US$4.5 billion. That was after the stock went to zero. Well, it is 2 cents on the pink sheets.
EK does not make a profit and loses money every quarter, and just recently borrowed 1/2 billion $.
Someone who knows how to make it work, use the patents, and wants to keep the Kodak name should be willing to pay more than $1.00 a share = only $269M.
Maybe Warren Buffet will save a company that opened it's doors in 1892.
I'm very tempted as well. Hoping for a SIRI type last minute bailout. It would also be a shame for such a long standing company fall. Especially when they've done so many positives for the world.
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