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 embattled photography company Eastman Kodak
So what: According to MDB Capital Group, Kodak's digital-imaging patents could be worth about $3 billion (or five times worth the entire business), triggering plenty of takeover speculation among investors. It's no secret that the film photography specialist has struggled to stay relevant in the digital age, but given the voracious demand for intellectual property of late, Kodak's best move might just be to sell out to an innovation-hungry giant like Microsoft
Now what: I wouldn't get carried away in the optimism just yet. As my fellow Fool Rich Duprey noted yesterday, Kodak's board just approved a plan that would dilute shareholders if someone tries to acquire 4.9% of the company, effectively giving management the ground to "dig in to protect its own interests." Without the absolutely glowing prospects of a takeover, Kodak's heavy loss-generating main business and worrisome $1.2 billion pension shortfall just aren't worth being exposed to.
Interested in more info on Kodak? Add it to your watchlist.
