EKDKQ - Eastman Kodak Company (Penny Stock)

[BadThad]

Nice dip today, about 7%, need to more DD, but this is one solid company. I might bottom play the dip. Overall, the stock price is HUGELY depressed and trading near it's low of $2, this was an $80 stock!

Eastman Kodak Company - Google Finance

Current stock price: $6.19

[BadThad]

Stock continues to slip this afternoon even though an upgrade is published today:

S&P RAISES OPINION ON SHARES OF EASTMAN KODAK TO HOLD FROM SELL
(Standard & Poor's)
EK will raise up to $700M as KKR agrees to purchase up to $400M in 10%-10.5% notes and will also receive warrants to purchase up to 53M EK shares. Separately, EK will offer $300M of convertible notes to institutional buyers. Though these deals will likely dilute shareholders significantly (up to 30%), we believe they help to alleviate concern that EK would have difficulty redeeming its 2033 convertible notes (holders can sell back to EK in Oct. '10). We raise our target price to $6.50 from $2.50 using an updated EBITDA multiple slighly below that of peers.

Current stock price: $6.01

Some very serious short interest:

Percent of Float-- 14.39%

[BadThad]

Details on the $700 million:

Kodak leans on KKR to raise $700 million
7:08p ET September 16, 2009 (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Eastman Kodak Co. said late Wednesday it aims to raise $700 million through a series of transactions that include selling $400 million in secured debt to private equity firm Kohlberg Kravis Roberts & Co. in exchange for a major stake in the company and two seats on Kodak's board.

Kodak said the infusion of fresh capital would be used to refinance debt and fund its ongoing transition from traditional film photography to digital imaging.

According to the plan, KKR has agreed to buy up to $400 million of Kodak's senior secured notes, due 2017. Kodak, in turn, has agreed to issue KKR warrants that would allow the firm to buy up to 53 million shares of Kodak common stock, or nearly 20% of Kodak's 268 million shares outstanding.

Kodak, at its discretion, may also issue KKR up to $300 million for senior secured notes, which would then reduce the number of underlying warrants available to KKR to as few as 40 million.

The agreement stipulates that KKR must hold however many warrants and common shares it acquires for at least two years.

Proceeds from the transactions will be used to buy back Kodak's existing 3.375% convertible senior notes due 2033, shoring up the balance sheet and freeing capital for what the company called core investments.

Investors, focused the dilution of Kodak's stock, sent its share skidding as much as 3.6% in after-hours trade. The shares rose 4.5% ahead of the announcement to close at $6.68, leaving them 1.5% higher for the year to date.

But Kodak stock is still down 51% from where it was trading a year ago, significantly underperforming a 4% decline by the S&P 500 Index over the same period.

Kodak also said it was standing by the earnings outlook update it issued in July, which predicted a 12% to 18% decline in 2009 revenue and a loss for the year.

The company suspended dividend payments in April following a $360 million first-quarter loss from continuing operations. It lost another $191 million in the second quarter and no longer provides quarterly earnings outlooks.

[BadThad]

Still slipping, down over 5% to $5.62.

[BadThad]

Seems to have found a bottom around $5.30.

Current stock price: $5.51

[BadThad]

Big drop on outlook today, good chance to get in. This could be a nice little bounce play.

Current stock price: $7.20 (down over 13%)

[Timbo]

I really like this one, trading very near the low. Have a position at the 3.70s, earnings are up soon and the recent dip have drawn in lots of buyers with some good volume. Been lots of chat on the boards so I believe we will see a good bounce, this company has been beaten badly but is trying to turn it around.

[BadThad]

I forgot about this play! LOL

All my attention has been with BP, RIG, BAC and a couple others. Too many stocks to follow anymore.

[Timbo]

Originally Posted by BadThad

I forgot about this play! LOL

All my attention has been with BP, RIG, BAC and a couple others. Too many stocks to follow anymore.

Kinda like being a kid in a candy store. I'm out with a nice profit but have it on watch, I learned to cash in the chips instead of holding.

[BadThad]

Originally Posted by Timbo

Kinda like being a kid in a candy store. I'm out with a nice profit but have it on watch, I learned to cash in the chips instead of holding.

Yep, it's always good to take the money and run.