Eastman Kodak Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of photograph pioneer Eastman Kodak (NYSE: EK  ) were spotted jumping for joy today, gaining as much as 13% in intraday trading on heavy volume.

So what: Eastman Kodak investors are waiting breathlessly today for a decision from the U.S. International Trade Commission on whether to review a judge's ruling on Kodak's patent suit against Apple (Nasdaq: AAPL  ) and Research In Motion (Nasdaq: RIMM  ) . Kodak alleges that phones from the two companies violate a patent on for previewing images. In January a judge ruled against Kodak, but there are obviously high hopes that the ITC will decide today to review that ruling. According to Bloomberg, Kodak CEO Antonio Perez sees the potential for $1 billion in royalty payments if the ITC rules in its favor.

Now what: Obviously a favorable ruling in this case doesn't fix the problems at Eastman Kodak. To a large extent it's still a buggy-whip company trying to adapt to the age of autos. However, the company has been using its royalty income to help fund its push into products other than camera film. Adding a fresh $1 billion to that revenue stream would give the company a bunch of extra firepower in its efforts.

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  • Report this Comment On March 25, 2011, at 9:18 PM, TMFKopp wrote:
  • Report this Comment On March 26, 2011, at 9:16 AM, khaledmrd wrote:

    Kodak is not just patents,even has 11,000 Global patents in many areas.

    Kodak Transformation to digital with huge Inkjet & other technologies line-ups in 2010 /2011, Home, commercial, office, packaging, Kiosks, Pro lab,express digital stores all this investing since 2005 with billions.

    Two New Kodak Trademarks Issued in 2011 for Computer printers ""Hero" & "Kodak" so more Printers coming

    Kodak moved units like Digital Capture & Packaging to Singapore and new industrial/ R&D Base in China, also big in Document imaging & Software development

    going big into India and Brazil and acquiring companies and developing partnerships even in Europe .

    said they have more Patents settlements & Sales for non core Business & Assets could bring in 100s of millions in 2011 like Sensor Business the CEO said will sell on 3rd Feb.

    70+ SKUs 2011 Gadgets device ,etc Social network

    R&D 8 Countries,

    Material Science

    Micro Devices

    2011 innovation:

    3D/2D Laser Projection

    3D Dimensionalization, taking film that was captured 2D converting to 3D in post-production.

    3D Dimensional Printing / Coating text & images a raised or 3D effect for Kodak latest commercial printing ranges

    Functional Printing manufacturing like Screens & other ranges

    Also kodak 2011 Smart packaging with layers printing, touch see other layer

    Three 2011 Kodak Global Deals Flextronics, IBL & Konica-Minolta

  • Report this Comment On March 31, 2011, at 9:17 PM, gorval64 wrote:

    Why isn't anyone nor any mainstream financial news outlet such as Bloomberg, Reuters, the Wall Street Journal, or Forbes reporting the crucial fact that the chief judge in Kodak's ITC case has a clear conflict of interest that should serve as legitimate and sufficient grounds by itself for having him and his opinions in the case to be immediately dismissed? Judge Paul Luckern used to be an employee of Kodak and worked for it as a chemist. This fact can be easily found and verified.

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