Insightful Inve...'s  Instablog

Wow, the market always knows how to keep us on our toes.  Just when it seemed that the first article I published may have given some lousy advice, solid facts and reasoning looks to have prevailed. Since I published my article on September 1, Eastman Kodak had risen initially from $3.17 to $3.25, but then continued it's slow slide to $2.69 intra-day on September 12.  However, in the last half hour, the stock more than made up for those losses hitting a high of $3.29 before closing at $3.05.  The rally looks to be continuing in the after-hours market as its back up to a $3.25 high on a heavy 500,000+ shares already traded.  There's no specific news that has come out yet, but looks to be related to the patent sale that we brought up in the original article (http://seekingalpha.com/article/291057-eastman-kodak-options-make-money-off-this-volatility-safely)..

My original thesis still holds where Eastman Kodak's patents alone, make this stock worth at least $5/share on a comparable basis against the Nortel patent buy by Apple, Microsoft, and Research in Motion collectively and the Motorola Mobility sale to Google.  Add in a valuable brand name, revenue generating film business, and valuable real estate regarding its massive headquarters in Rochester which is put at cost on its balance sheet, Eastman Kodak's value finally looks to start being discovered by Mr. Market.




Disclosure: I am long EK.