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EASTMAN KODAK CO Message Board

  • stockboardguy stockboardguy Apr 25, 2013 12:15 PM Flag

    UNXL/KODAK Deal proving to be MASSIVE! This is just 1 facet of the deal!

    Hey Bond Boy Butt Buddies, read em and weap!

    •The $40 million that UNXL nets from the sale will be far more than sufficient to enable it to quickly and confidently build-out its plating and production lines and finance its newly-announced venture with Kodak to produce the touch-sensor films in Rochester. A rapid increase in production is the name of the game right now because the faster UNXL can ramp up, the more product it can churn out, the larger market share it can capture, the more billions it can earn in a touch market. This $40 million will be more than enough to fund the $12 million or so that UNXL will add to Kodak's contribution to outfit their new plant. In a conservative back-of-the-envelope calculation, this is enough to buy and install three new plating lines and 30 new printing lines, together able to turn out at least 2.5 million units (i.e. square feet) a month, on route to the Kodak-UNXL goal of 10 million a month. Two and a half million square feet a month equals 30 million units a year. Let's chuck out 20% for possible loss, waste, and quality-control rejects. That leaves 24 million units a year. At $20 a square foot, the stated price (far below the industry average), that comes out to $480 million in annual revenue from just UniBoss. Since an entire UniBoss production line only needs four employees per shift to run (two for plating and two for printing), labor costs are low and margins are high. Let's be harsh and deduct $180 million for materials, operations, amortization, depreciation, and taxes. That leaves $300,000,000 bottom line net income. Divide that by the 15,378,000 shares to be outstanding by 2014, and you have earnings of $19.50 a share. Apply to that a P/E multiple of 20, which is very low for a company growing like this, and you have a PPS of $390! Let me write that out so you know it's not a typo -- three
    hundred and ninety dollars per share. We can also make the calculation

    SBG

    Sentiment: Strong Buy

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    • kidkodak@ymail.com kidkodak Apr 25, 2013 6:59 PM Flag

      You lost me at 15,378,000 shares? How'd the float shrink so much? 1 for 20 reverse split? In that case your price target need to be divided by 20. Then again, those PROfits will belong to the bond holders......

    • All the upside from any profits generated by the partnership with UNXL will go to the NEW owners of Kodak.

      SBG, If you understood anything about what happens in a ch.11, then you would realize that any future upside in Kodak will go to the creditors, who will be the new owners of Kodak.

      I think the numbers posted about Uniboss are unrealistically high, since there is at least one competing process.

      But, even if they were realistic, ALL the benefits would flow to the NEW owners of Kodak!!!!

    • SBG....you lost the Bond-O's when you used the word facet. They don't look at things from different angles. They have tunnel vision to match their limited IQ....
      I appreciate you trying to reach out to them...maybe it's time you just start to let them go...

      Sentiment: Strong Buy

    • We can also make the calculation from the market side, a market for touch screens alone estimated by industry experts to reach 18 billion dollars by 2018. If UNXL can take a mere 10% share of this market, that is $1.8 billion gross annual revenue. Chop that down a full 60% for expenses, G&A, etc. and you get $720 million net income a year. Divide that by 15,378,000 shares, and the EPS is $46.80. Multiply that by a P/E of 20 and you have a price per share of $936 by 2018!!!! If you use a not-unreasonable P/E of 30 for this hot and growing stock, the valuation rises to $1400 a share! (No, I haven't been toking up on #$%$, and I never drink anything harder than Diet 7Up.) If you are an extremely skeptical investor, then whack the price in half again to account for some assumed Asian competition, quantity discounts, and product price erosion, and you a still looking at a 20-fold increase from 35 to 700. Now maybe you can understand why UNXL made the Nifty Nine in the Big Money Poll and joined the ranks of Apple and Google.

      SBG

      Sentiment: Strong Buy

 
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