Dueling Fools

Dueling Fools
April 7, 1999

A Kodak Moment
Kodak price (4/6/99): $62 15/16

Say Duel Cheese! Eastman Kodak (NYSE: EK) has been a household name for generations, but if you set up the tripod today, are shareholders still posing with smiles?

This week we bring you a pair of snapshots from opposite camps. Paul Larson (TMF Parlay) likes the big picture, while Bill Barker (TMF Max) thinks the shares are simply out of focus.

Who will strike the best pose? You get to decide. And don't miss this week's Duel Flashback, where we see whose engine ultimately overheated in our Ford (NYSE: F) Duel.

You Get to Vote!

Once you've read the arguments and the rebuttals, it's your time to cast your vote. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.

[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]

The Bull...
Picture this. Imagine being able to buy one of America's premier companies at half the valuation of the rest of the market. This company has a long history of innovation and one of the most recognized brand names on the planet. Plus, the stock would pay you triple the dividend of the S&P 500. You don't have to stretch your imagination too far since that is the situation today with Kodak.
The Bear...
Take a company that has been showing a weakening top line for about a decade, has lost pricing power, is bleeding market share, has cut dividends, and has nearly the same price per share that it showed more than a decade ago, and then realize that that is the good part of the story. The real problem with Kodak is that it is in an industry that is completely doomed over the very near future. Why, I ask, would anybody want to invest in that?

Results for last week's FDX Duel

Answer Percentage
I can't make up my mind


TMF Parlay's Bull argument


TMF Edible's Bear argument


They were both excellent


They were both lame