http://www.ProfitableInvestingTips.com - Investing in Kodak During Bankruptcy - The 131 year old company that invented the personal camera has filed for bankruptcy. For the astute investor it might just be time to consider investing in Kodak during bankruptcy proceedings. As the picture taking world has moved to digital Kodak has had problems keeping up. Even before this foreign companies like Fuji were undercutting the price of Kodak film and cutting into its profit margins. The company is running on credit and running out of that so it has filed for protection while undergoing restructuring. For the individual interested in investing in Kodak during bankruptcy there are a couple of useful things to think about. Like Motorola, this old company has a very large number of patents. In fact, Eastman Kodak has a large number of patents in the digital realm. As in all stock investing a little background is important.
When Kodak decided to catch up in the digital imaging business it eventually filed over a thousand patents. If you are investing in Kodak during bankruptcy you will be largely investing in the value of these patents. Some of them Kodak is selling the rights to and with some of them it is suing to enforce its patent rights. Kodak has already won a lawsuit against LG and has filed patent suits against Apple, Blackberry, RIM, and HTC. As the company states, it could win significant royalty payments if all of the lawsuits work out in its favor. On the other hand Kodak needs to cut its costs and increase its sales of new and old products in order to thrive in the years to come. For one of the old time dividend stocks this is brand new day. This brings up the issue of whether it might be wise to invest in Kodak during bankruptcy only for the short term or long term as well.
Fundamental analysis of Kodak could include some of the following. If Kodak gains significant royalty payments and improves its business picture it could be a great long term play at a currently low price. On the other hand the stock price could pop up with new royalty payments only to languish again if the company cannot reshape itself and regain profits. Kodak has not invested in its traditional film business for eight years. Nevertheless it still sells film. The company has offshore subsidiaries which are not included in the bankruptcy proceedings. The company has about five billion in assets and almost seven billion in debts. Although Kodak has moved into the business of making ink jet printers for both personal and commercial/industrial use it has yet to profit from this business segment. For someone to invest in Kodak during bankruptcy and turn a long term profit Kodak needs to make at least one of its business segments profitable. An attractive aspect of reorganization, for Kodak, would be to reduce its pension fund obligations. This old company has many retired employees and the sum of its pension obligations runs to a quarter of a billion dollars a year.
2. The 131 year old company that
invented the personal camera
has filed for bankruptcy.
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3. For the astute investor it might
just be time to consider investing
in Kodak during bankruptcy
proceedings.
www.ProfitableInvestingTips.com
4. As the picture taking world has
moved to digital Kodak has had
problems keeping up.
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5. Even before this foreign
companies like Fuji were
undercutting the price of film
and cutting into Kodak’s profit
margins.
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6. The company is running on credit
and running out of that so it has
filed for protection while
undergoing restructuring.
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7. For the individual interested in
investing in Kodak during
bankruptcy there are a couple of
useful things to think about.
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8. Like Motorola, this old company
has a very large number of
patents.
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9. In fact, Eastman Kodak has a
large number of patents in the
digital realm.
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10. As in all stock investing a little
background is important.
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11. When Kodak decided to catch up
in the digital imaging business it
eventually filed over a thousand
patents.
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12. If you are investing in Kodak
during bankruptcy you will be
largely investing in the value of
these patents.
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13. Some of them Kodak is selling
the rights to and with some of
them it is suing to enforce its
patent rights.
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14. Kodak has already won a lawsuit
against LG and has filed patent
suits against Apple, Blackberry,
RIM, and HTC.
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15. As the company states, it could
win significant royalty payments
if all of the lawsuits work out in
its favor.
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16. On the other hand Kodak needs
to cut its costs and increase its
sales of new and old products in
order to thrive in the years to
come.
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17. For one of the old time dividend
stocks this is brand new day.
www.ProfitableInvestingTips.com
18. This brings up the issue of
whether it might be wise to
invest in Kodak during
bankruptcy only for the short
term or long term as well.
www.ProfitableInvestingTips.com
19. Fundamental analysis of Kodak
could include some of the
following.
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20. If Kodak gains significant royalty
payments and improves its
business picture it could be a
great long term play at a
currently low price.
www.ProfitableInvestingTips.com
21. On the other hand the stock
price could pop up with new
royalty payments only to
languish again if the company
cannot reshape itself and regain
profits.
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22. Kodak has not invested in its
traditional film business for eight
years.
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24. The company has offshore
subsidiaries which are not
included in the bankruptcy
proceedings.
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25. The company has about five
billion in assets and almost seven
billion in debts.
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26. Although Kodak has moved into
the business of making ink jet
printers for both personal and
commercial/industrial use it has
yet to profit from this business
segment.
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27. For someone to invest in Kodak
during bankruptcy and turn a
long term profit Kodak needs to
make at least one of its business
segments profitable.
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28. For someone to invest in Kodak
during bankruptcy and turn a
long term profit Kodak needs to
make at least one of its business
segments profitable.
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29. This old company has many
retired employees and the sum
of its pension obligations runs to
a quarter of a billion dollars a
year.
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30. This could be substantially
reduced in bankruptcy
proceedings.
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31. In addition, Kodak is expected to
split its business into consumer
and commercial parts, making it
easier to sell one or both.
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32. For more insights and useful
information regarding investments
and investing, visit
www.ProfitableInvestingTips.com.