KODK - Eastman Kodak: Potentially Significant Cash-Injection Results In Renewed Interest
2024-03-26 12:38:39 ET
Summary
- Eastman Kodak's stock has rallied over 28% since January, outperforming the S&P500.
- The potential unlocking of a $1.2 billion pension surplus could significantly improve Kodak's financial position.
- Despite growing gross margins and profitability, negative sales growth and technical resistance pose challenges for the company.
Intro
We wrote about Eastman Kodak Company ( KODK ) in January of this year when we implied that investor sentiment had become too bearish in the 'Print' & 'AMC' provider. Although a sustained pattern of multi-year lower lows had become the norm in KODK, we pointed out that the stock's valuation was now approaching bargain-basement levels. Evidence of the stock's compelling valuation was the stock's 18%+ GAAP earnings yield and the sizable gap between Eastman Kodak's share price and the underlying book value per share. Given some encouraging announcements we will get into later in the article, shares of KODK have rallied over 28% since our most recent commentary on the 4th of January this year. This a sizable return given the S&P500 has returned just over 11% over the same timeframe....
Eastman Kodak: Potentially Significant Cash-Injection Results In Renewed Interest