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 Eastman Kodak
So what: Bad news keeps piling on Eastman Kodak shareholders; the stock has headed straight down this week. We saw a similar fall yesterday, after Kodak received an unfavorable ruling on a patent suit, but this time earnings disappointed the market. Revenue was down 25% in the fourth quarter, to $1.93 billion, and earnings per share from continuing operations of $0.12 was 88% lower than last year.
Now what: Kodak's transition into an intellectual-property-licensing company has been anything but smooth, as this two-day plunge indicates. For the speculative investor, buying on the dip may seem like a tempting proposition, but catching a falling knife is never easy. I may be tempted to buy a few shares when the market settles down, but for today, I am going to stay away, for fear we may see the stock plunge further tomorrow.
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