Special Situation Investing

Thursday, May 04, 2006

(EK) Eastman Kodak Plans Sale of Health-Imaging Business

From the article:

Created a year after the discovery of X-ray film in 1895, the unit accounts for nearly one-fifth of Kodak's overall sales but its operating profit plunged 21 percent last year as margins tightened. A sale would wipe out most or all of Kodak's $2.6 billion in debt, analysts noted."

"...Shannon Cross of Cross Research in Short Hills, N.J, the business might fetch $1.5 billion to $2 billion"

"...Buckman, Buckman & Reid in New York who thinks the unit "can bring at least $4 billion.""

"...Kodak lost the equivalent of $1.04 a share in the January-March quarter"

Not a pretty picture, but it could be an opportunity. Legendary Bill Miller is banking on the stock making a recovery. For those who don't know, Bill Miller he has beaten the S&P 500 for 15 years straight. His picks include Dell and AOL (back when it was going up).

Some general background on the Eastman Kodak situation.


Post a Comment

<< Home