The company has long been criticized for its underperformance in the digital age. Earnings have lagged and Kodak stock has lost 16% over the past 10 years, dividends included, while the S&P 500 has gained 160%.
In an effort to get back into the game, CEO Daniel Carp introduced a structure today that he says will help "build entirely new businesses that will position us for growth." This includes a new Commercial Printing division to be headed by former Hewlett-Packard
Two things here. First, much credit goes to Carp and team for finally positioning the company to meet the digital age head-on. Second, it's hard to know whether to trust that they'll actually be successful. Ten years of disappointment is enough to make anyone skeptical.
The stock is beaten down enough, however, that the rising "Teacup Index," the 6.3% yield, and this realignment have put the company back on my radar.