When the best thing about Eastman Kodak stock (NYSE: KODK) is that it launches a cryptocurrency and blockchain platform, you know what this business is about.
When one of the best things to say about Eastman Kodak (NYSE: KODK) on the market is that they are about to launch a cryptocurrency and mining pull platform, the direction that is being pursued is pretty clear. inside the company.
As everyone knows, Kodak has been out of bankruptcy since 2015, but even if they went out of business, Kodak, which was once a worldwide benchmark through products marketed as performance films or cameras. , this seems to be blocking itself again just to save itself, especially since it would be restructuring in terms of jobs.
Almost everyone in the stock market and derivatives are keeping their eyes on the figures to be reported from the first period of the year on May 9, more precisely the figures on the profit in the first quarter of this year.
Skepticism has spread among investors and they do not expect any speculative results in terms of profits.
Kodak seems to have much lower returns than expected
As we know, however, Kodak relies on something for the expected growth. And here we can say that it has greatly diversified its targeting area regarding the digital market. We can remember their business with boards that do not have Sonora processes, which seems to have grown well in 2018, more precisely by 19%, which has led to an increase in profitability by up to 8% in a single year, and it seems that the lawn has been the same for some time.
Among the various activities that the new Kodak performs, there is the ink jet realized by the Prosper division, which managed to bring a return of 8% last year and which maintains its trend at this level.
Ultrastream is the project from which Kodak expects much and in which Kodak places great hope in what represents the annual reported profit. Ultrastream is the division that has as its central project, the ultramodern inkjet printer, but also that sells light blocking or electronic printable materials.
If we look closely at these projects started by Kodak, it seems that things are really good. But even in these conditions, if we look at the overall picture of Kodak stock, they continue to decline. If we look at last year’s figures, we see that Kodak fell by 4%, which would result in a nominal loss of 16 Million Dollars, compared to the profit reported for 2017 when it was 97 million dollars .
However, adjusted for currency fluctuations, depreciation of trade names related to the sale of its Flexographic Division packaging, freight costs, changes in workers and other factors, Kodak reported last year a gain of $ 1 million in operating EBITDA against a loss of $ 10 million last year.
It is obvious that Eastman Kodak has many activities with many moving parts, especially as it seems to be very efficient in what it means to reorganize in bankruptcy but may need to sell many owned businesses in order to get rid of it permanently. situation and it has much more to prove until it is considered an important player in the digital photography market of this millennium.
Eastman Kodak a road with obstacles and successes
We all know that Flexographic was for Eastman Kodak one of the main values and with the sale of this business, Eastman Kodak was greatly depreciated. Despite the fact that Eastman Kodak managed to get $ 340 million, what he managed to receive was, however, far from what he had hoped for, which is $ 400 million, also considering the fact that Eastman Kodak, at the time of the transaction initially used the short-term debt, added in the final evaluation of Eastman Kodak.
Without having a deep understanding of the stock markets, we can all realize that Flexographics was one of the few profitable Eastman Kodak businesses and the figures are resounding for Kodak, only last year Flexographics managed to reach a figure of business of $ 148 million.
If we can remember, not long ago, Eastman Kodak, was how much to sell the Prosper business before, more precisely, the negotiations were held with those from Xerox who were rumored to want to buy Prosper. An agreement that fell due to the fact that Eastman Kodak considered that what it had received as a sale value of Prosper was well below what Kodak wanted.
No less important would be Eastman Kodak’s movements during this period. By far the most important move was to bring in a new CEO after, at the beginning of the year, he woke up with the previous CEO’s resignation. Especially since these days Eastman Kodak seems to be looking for a new CFO.
Stay away from Kodak stock for the moment
Eastman Kodak being in such a complicated situation, it’s no wonder the market doesn’t give Kodak much growth in stock. And it would also be easy to understand this skepticism, after last year Kodak stock lost half the nominal value of the shares, reaching $ 2.40 per share price.
And those who do market analysis, seem not to be optimistic even in what is expected in the future, expecting an annual loss of 12%. That’s if we calculate the estimates for Kodak over the next five years.
The imaging company, has an equally unfavorable evolution, short-term shares have reached 22% with a weight of 20 days.
If we take all these aspects into consideration, Eastman Kodak stock is not a worthwhile transaction, at least not at this time, as it seems that stock volatility will continue to increase, and uncertainty is likely to indicate a downward trend.