Efforts by Kodak's management to stabilize the capital structure are not enough to save the company.

The company's financial and operating risk keeps rising, which raises a question regarding its ability to report as a "going concern enterprise. The Eastman Kodak Company NYSE: KODK used to be an iconic brand synonym with photography and cinematography, but disruptive technological innovations led the company into a downward spiral that ended up with a Chapter 11 bankruptcy in These disruptive forces include the evolutionary transformation of the film camera to a digital camera and the convergence between the digital camera and the cell phone.

The digital camera eliminated the necessity to buy photo film, and the convergence with mobile phones eliminated the need to print pictures.

Eastman Kodak Co - NYSE:KODK - Stock Quote & News - TheStreet

Two ironies in the Kodak story highlight how management was unable to transform its business model, although it had all the financial and technological resources to do so. The first irony in the story is that a Kodak engineer, Steve Sassonwas the inventor of the digital camera in It was not as small as we know it, but it was evident that this was the direction where the industry will go.

In the beginning, management disregarded Sasson's innovation, but later they understood its significance and started investing in its development. However, by that time Kodak already lost its first entrant advantage, as well as the opportunity to build significant core competencies with the technology it invented. Another problem was that management did not anticipate that this technology will cannibalize the company's iconic core product, the photo film.

It didn't take any action to adjust Kodak's business model, which could have minimized the impact of revenue cannibalization from the emergence of the digital camera.

The second irony was that management indeed recognized the disruptive power of cell phones and the emerging trend of sharing photography in a digital format. It tried to position the company appropriately and capitalize on the changing forces in the industry by acquiring Ofoto in Although the company management had the right technology and intentions, it failed to execute.

Instead of developing a strategy that would incorporate the digital format into the business model, it continued to push consumers to print photos.

In recent press releases and call transcripts, Kodak's management tried to emphasize that the emergence from bankruptcy is a fresh start for the company and that the focus is on transformational innovation, just like it was in the past. In reality, it appears to be more focused on implementing a survival strategy, which is appropriate for a company that is in financial distress. Recently, management made an announcement about the revival of the iconic Super 8 camera and about the release of the camera-centric smartphone Kodak EKTRA.

Since the new products will only serve a very small niche market of camera and film enthusiasts, it's hard to believe that they will significantly impact Stock options ex dividend date top and bottom line.

It's also hard to believe these products will be innovative enough to transform both industries. In my opinion, Kodak's management is unable to develop significant core competencies that could enable the company to restore the competitive advantage it had in the past.

It's only a matter of time before history repeats itself and Kodak once again goes out of business.

Kodak - Wikipedia

The shares are convertible into 5. In my opinion, the pre-payment will improve Kodak's capital structure, and the WACC will decline by approximately bps.

Ultra trend forex indicator (setup)tutorial.mp4 my opinion, it overestimated the amount, since it didn't incorporate the annual tax savings Kodak has from such interest expense.

Recent Divestment Q3 Inthe company how to buy eastman kodak stock to divest the PROSPER unit, is xm forex legit is part of the Enterprise Inkjet Systems segment.

Kodak will maintain its VERSAMRK product, which is not only less advanced technologically but also under rapid decline from a price and volume perspective, according to management. Stock broker administrator jobs also unclear why the company is divesting PROSPER, since it has features that can lead to stable and recurring forex volatility index. The results of operations of the Prosper business are presented in the following table:.

Kodak's financial and operational risk keeps rising as a result of high debt levels, past legal liabilities, and the constant decline in revenues. Fundamental Chart data by YCharts. As presented in the table below, Kodak's Z-Score is 1. A Z-Score below 1. Altogether, it raises questions regarding the company's ability to report as a "going concern enterprise. KODK Altman Z-Score TTM data by YCharts. From an operational risk perspective, revenue declined by According to management, the forexten para kazanan in revenues was a result of increasing competition as well as negative volume and pricing pressure.

KODK Revenue Quarterly data by YCharts. On a comparable basis, gross margins rose to According shanghai stock exchange ticker symbol CEO Jeff Clarke, the increase in gross margins is a result of the decrease in aluminum prices, which represent the majority of Kodak's raw materials. Based on the downward trend in us dollar to chinese yuan exchange rate trend and the cyclical and unpredictable nature of commodity prices, investors should view the increase in gross margins as a one-time event.

In the third quarter offinished goods increased by 1. According to management, this disparity is a result of Kodak's cyclical revenue features, but in my opinion, this is a sign of declining demand, which is affirmed by the downward trend in revenues. KODK Raw Materials Inventory QoQ Growth data by YCharts. Management continues to facilitate new partnerships and joint ventures.

InKodak initiated a partnership with Alibaba NYSE: They established a new entity, in which Kodak holds Management consistently changes the interest rate assumptions, which leads to an inaccurate representation of the total periodic pension cost and the net pension obligation. Furthermore, based on the annual reportthe allocation of the pension assets is not reflective of the 7. Most of the pension assets are allocated to investment grade corporate and government bonds, while equities only represent a small portion of the asset allocation.

Kodak also lacks transparency regarding where it classifies the various components of the periodic pension expense on the income statement expected return, current service cost, interest cost, amortization of past service cost.

It is within the GAAP accounting rulesbut creates a blurry picture regarding the company's real core operating income and earnings quality. Kodak can use this VIE to manipulate accounts receivable balance and inflate cash. It raises a question regarding what the real purpose of the VIE is. The outstanding liabilities significantly exceed Kodak's market capital, and all indicators point toward a future bankruptcy.

The recent release of the smartphone and the camera are not enough to reverse the downward trend in revenues, and management will have to continue divesting its assets in order to show earnings growth. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha.

I have no business relationship with any company whose stock is mentioned in this article. Long Ideas Short Ideas Cramer's Picks IPOs Quick Picks Sectors Editor's Picks. Not A Kodak Moment Anymore - Short The Stock Jan.

Summary Efforts by Kodak's management to stabilize the capital structure are not enough to save the company. History will repeat itself, and Kodak will head into bankruptcy within the next months. Historical background The Eastman Kodak Company NYSE: Investing IdeasShort IdeasConsumer GoodsElectronic EquipmentAccounting ConcernsBroken ModelImminent BankruptcyShort.

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