Future Stock Performance of Eastman Kodak

Eastman Kodak may potentially file for bankruptcy to resolve its ongoing cash-flow shortage, depending on results of negotiations among management, creditors and major shareholders. The stock (EK) currently has negative equity, or book value, after years of net losses, meaning that the company doesn't have enough assets to repay all its outstanding liabilities, and as a result, leaving nothing to shareholders in the case of a bankruptcy. The stock fell to $0.78 the prior day, Friday 9/30/2011. Trading was heavy with volume doubling the average trading volume and equaling about 20 percent of the number of shares outstanding.

Noticeable shareholders include Bill Miller's Legg Mason fund, Bill Gates' charitable foundation and KKR, the private equity firm. If any of these shareholders intervene with proposals of restructuring the company's operations, the company may have a chance to survive and grow again. The company's business is not focused as it is now, spreading between digital and traditional imaging. Previous efforts by current management to venture into the printer business has not paid off at all.

The stock rebounded to $1.34 again on heavy volume Monday today, indicating that some investors are betting on the survival of the company. More corporate actions should provide further guidance as to the stock's future direction.