Here's the headline:
Kodak Takes Next Steps toward Successful Emergence
Company to Focus Primarily on Commercial, Packaging and Functional Printing Solutions and Enterprise Services
Initiates Sales Processes for Personalized Imaging and Document Imaging Businesses
Discussions Continue on Digital Imaging Patent Portfolio, which May Be Sold or Retained
Here's the translation, a line at a time:
1. Kodak is fighting for survival, which is by no means assured.
2/3. The Document Imaging, Kiosk, and other businesses on the chopping block have to be THRILLED! If buyers can be found, they'll have escaped the EK soap opera.
4. The digital patent portfolio will be retained. ("...May be Sold or Retained..." is foreshadowing for "...Will be Retained...").
So, since the IP auction was unsuccessful, they get to pay all the lawyers and consultants, and move on with the task of getting smaller.
Managers will probably come out with another bonus plan next week.
I'm waiting for the pumpers to spin this. Come one Pro, who is the MORON now? If billions were still sitting on the auction table this PR would never been issued. Kodak has admitted that the auction was a failure and they're now working alternate solutions. While Kodak still might survive in some form, the lottery ticket many of you thought you were holding will likely turn out to be worth just what 99.9999% of most lottery tickets are worth. Zero!
Yes, I'm waiting for the spin indeed. A lot of pumpers keep spinning as is they are in it for the long haul, but fact is I really don't see a long term revenue flow that would drive stock prices higher. The pumpers won't admit it but they really are looking for the quick flip and the employees and retirees be damned so they can get that money. The joke may be on them if they don't jump off the spinning wheel before the stock is cancelled. And yes, look for AP to find ways to grab even more money on his way out the door as the boat sinks.
Document Imaging is Kodak's most profitable business on an earnings as a precent of revenue basis. This means they need to raise cash by selling the next most valuable asset after the Patents. It is worth 400M. Kiosk (RSS) is worth between 200-300M and Paper and output is 300M. Buyers could be PitneyBowes for DI, DaiNippon for the other two in a package deal. EIS is the santa clause business you saw in the mall and thrill ride pictures at Disney and Universal. Probably worth 40M tops (Maybe Pro will buy it from the profit he made on EK/EKDKQ.PK/EKDKQ).... So Basically, there is a Billion if they can execute the sales.
So by selling their most profitable BU what would that gain them? I hope you do realize that Kodak still has to continue making money in the future. Too many of you seem to think that a one time cash transaction translates in to X number of dollars per share. That may be true if the entire company is being sold, but if piece are sold off and future business prospects are in the toilet then the PPS will reflect that.