Earnings will be coming out in about 45 days and I can not wait to hear that kodak is cash flow positive. Everyday you hear about more companies that are coming to Rochester and more importantly Eastman Business Park.
My estimate is that by year end the Business park will be worth north of 400 million. Kodak can get financing with a secured loan on EBP for 300 million. Then kodak can take another 300 million of the 580 million available and they can pay off ALL the long term debt IN FULL.
This can save Kodak over 50 million a year in interest payments that will show up directly on the bottom line. (Currently kodak is paying approx 15 million a quarter in interest).
Kodak is officially turning the corner in the second half of the year, and I for one am going to be part of it.
Has anyone ever thought that LVS should buy out Amaya (ticker AYA parent company of pokerstars/full tilt poker). This would be such a perfect fit.
LVS is a powerhouse in brick and mortar gaming. And AYA has a de facto monopoly over global poker play, and is set to double revenue in poker alone over the next 4 years according to their last earnings call. Plus they have a large opportunity to cross sell sportsbook and casino games globally.
AYA biggest opposition is Sheldon Adelson and his big lobbying power, that is (for now) preventing AYA to enter the US market. By taking them over and and allowing them into the US he would crush the online market.
LVS can take over AYA with a share/cash deal for about 5-8 billion and make their money back within 5-6 years. With the opportunity for LVS to double its EPS in the next 5-6 years.
Bottom line online is where the growth is at. Brick and mortar casinos are expensive and cost billions just to get the doors open and take an average of 3-5 years to build. For the cost of roughly one one physical casino LVS can add to the EPS today.
Kodak does not give away the presses, they sell them under cost and them they make the money selling the ink to the companies. Now one can argue, why would anyone but the ink from the company... but these are 100k and up devices and if you use none kodak ink you will void the warranty.
During the last call the CEO said that they will turn the corner into profitability (cash flow positive) over the next quarter or so. The next few months are going to be big in Rochester.