While Pro seems to have disappeared to contemplate how he can spin the latest developments with his convoluted optimism and foretelling hindsight, we have yet another ridiculous business plan that might lead to liquidation. Seriously, what is Kodak thinking? They will leave one division in a highly competitive printing space that HP, EPson, Canon, all well financed competitors, have their eye on? And what happens when margins shrink there? They can't rely on any other cash generation as they already cut off their other legs.
At least stuck in quicksand longs like myself, who just can't come to grips with the psychology of such a stupid investment, can hand on for another 6 months. The shares aren't likely to go up much but then they don't face near term cancellation either with the unknown recoveries of businesses being sold by Lazard well into next year. Of course, we all know by now that the Patents won't be sold
unless by some miracle Apple loses their appeal (something I have been saying needs to be fully resolved all along), Kodak lowers their expectations under pressure from creditors, and Kodak does NOT retain any license from the sold patents to prevent a later takeover for the that license. We still could see some licensing deal from many companies in a consortium, but I suspect many of those companies would risk instead the long term slow moving litigation rather than shell out 100M each.
Who could have contemplated going into this a couple years ago that Kodak, with valuable assets, and relatively modest debt, could not have stabilized the cash flow, sold some patents etc. Perez took hold of a company in decline but one with great prospects for a turn around with many opportunities unfolding in the digital space. Instead, we have perhaps the worst management team in modern corporate history destroy such a venerable brand.
Forget Pro. Use your own brain. If Kodak's patents were so valuable, why hasn't anyone bought them? And if, by chance, we have a short-term pop in the stock price over the next day or two, use that opportunity to SELL.
Pro is alive and well on the old message board. just google "yahoo kodak message board" and you will find him. BTW, Pro did just as expected and spun this as the best news ever. According to him, Kodak will be billions in the black and the stock will be $10 ps thanks to the latest moves. Kodak could announce Chapter 7 tomorrow and Pro would still suggest going all in, as that is all he can do.