After settle the law suits, the bad news is behind it. IMN had an operating profit last quarter which is a good improvement sign. When the economic recovers, IMN's stock price should return to normal mean price of $15. It is not bad to enjoy nice 3.5% dividend and potential $6 gain when the economic recovers next year. IMN is a good buy.
WTF Peter, You don't get it, do you? Flunkie can't find his ass with both hands, let alone pull IMN out of the "Brand Management" tailspin. Think about it- which direction has IMN gone in general since the big roll out in 1996? It was generally down, reflecting that IMN was in a tough business and also because IMN made all those stupid decisions such as mongo sized headquarter building, Kodak patent lawsuit, purchasing lame little companies, poor marketing decisions, misguided R&D plans, yup-yup plant managers, and so on. But then, when did the dive get even worse? (answer hint- when did Frank become CEO?).
So, tell us Peter- Just what magic do you think that Flunkie Boy going pull to make IMN a success?
Under the management structure of Imation little has really been done to cut expenses. The easy decisions have been made and some of those decisions are suspect. If they really want to get serious they need to start by the elimination of the 6% pension that is in place for all employees. After that they could examine their vacation policy of up 5 weeks for most employees. How can you get anything done when everybody is on vacation. Use it or lose it, the building is vacant in November and December. Months that are very busy for a Branded Management company. Next you could start cutting out the old 3m fossils that live to add more process management. Are they serious about making money or just providing paychecks to the good ole boys.
Under current management(Frank R) this company is a loser. They have blown though almost $500 million in cash,lost significant top line and destroyed two great brands. Their current plan to turn into a CE based brand company is laughable.Given a little more time they will blow through their remaing cash(the $53 mill to Philips will help expedite that) and be sold off in pieces if there is any value left.In addition through the settlement with Philips they loose any benfit of the cross license and profit and revenue from GDM.You may want to do some research before considering this co a good buy. Dont depend on the anaylst they seem to have even less of a clue on whats going on. They ask the same old tired qustions of management and ignore the failures.
Do u know the details of the settlement? I have not been able to confirm anything other rhan the $53mil. I am interested to know what happens to their cross license. Is it still valid? My understanding is that the key manufactors have signed a capacity license.