Re: [Leica] Kodak stock is down(way down!) this morning.

[John Nebel <nebel@csdco.com>]

Seth Rosner wrote:
> Hello John:
> 
> I've got a serious inquiry below.
> 
> ----- Original Message ----- 
> From: "John Nebel" <nebel@csdco.com>
> 
>>The Sinar rep stopped by a few weeks ago and helped with some problems,
>>solved with software, and quietly pitched their newest, the Sinarback 54
>>which has upgraded anti-blooming and improved dyes on the sensor.  Sinar
>>paid Kodak for the R&D and got exclusive rights on the chip for a year.
> 
> 
> Does this suggest that perhaps Kodak's proprietary digital technology is
> world-class competitive? I'm truly curious since I've been following Kodak
> shares as a possible investment in my retirement account.
> 
> Of course film has been their massively important product since forever and
> the yellow box  is among the most recognized signatures in the world (after
> Coke, IBM and Ferrari!!). That franchise is only dead (long term) if Kodak
> cannot develop a credible, competitive digital business. They have very
> capable R&D people working to do just this.
> 
> If the Sinar-licensed chip is this good, it is possible that this vertical
> drop in Kodak shares offers a very good buying opportunity. Assuming the
> dividend ($1.80/annum, payable semi-annually) is safe, at yesterday's
> closing price, the return is 6 1/4 %, about four times what the local
> savings bank is paying.
> 
> Interesting.
> 
> Seth
> 
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Seth,

Sinar regards Kodak chips as the best, that part is clear.  Whether or 
not Kodak can make enough money from their digital business to offset
shrinkage in other areas is quite a different question and one can only 
guess.

As you say, they are quite a capable company but they have to be blessed 
by the imaging marketplace and keep costs under control to keep that 
dividend stream going.  6 1/4% is nice.

John

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