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Eastman Kodak: Bargain Buy or Value Trap?

http://www.fool.com/investing/general/2011/01/24/eastman-kodak-bargain-buy-or-value-trap.aspx

Sean Williams
January 24, 2011

To really understand a stock, you just have to get down and dirty, break out your pencil, and really weigh the risk-versus-reward potential of the company you're following. I propose we take a closer look at the good and the bad at Eastman Kodak (NYSE: EK  ) , to see whether the stock is a good value or a potential money pit.

The good
I know what you're thinking and yes, there really are good points to be made for Eastman Kodak. For instance, inkjet printers are now Eastman Kodak's bread-and-butter business, and growth in that segment appears to be gaining momentum. Eastman has been going toe-to-toe with Lexmark (NYSE: LXK  ) and Hewlett-Packard (NYSE: HPQ  ) , emerging with 23% commercial and 26% consumer growth in its inkjet business based on its most recent quarterly report.

Perhaps Eastman Kodak's truest wild card lies in its intellectual property value. Eastman Kodak recently struck deals to cross-license its technology with Samsung and LG Electronics. It's also pursuing patent litigation against Apple and Research In Motion (Nas