Seeking Alpha

HIS MONEY's  Instablog

HIS MONEY
Send Message
View HIS MONEY's Instablogs on:
  • Kodak Patent Sale (Or Sales) And The Restructuring Of An American Icon?

    Kodak has more than one lot of patents for sale, correct? So, there may be more than one bid winner here? In fact 218 may sell solo as a third lot.

    Considering this seemingly forgotten factoid, the WSJ may have alluded to the initial bids for the lesser of the two (maybe three) lots.

    Earlier reports from later last year allude to a small lot of patents possibly selling for 1 BIL.

    It was recently reported that Android owns 85% of the existing smartphone market share. Will Google, Samsung, and the bunch, allow Apple and MicroSoft to obtain IP that could enable them to chip away at 85% of the existing and future smartphone market? Seems highly unlikely to me. Apple will not go down with a fight, and they assuredly did not ask MicroSoft and Intellectual Ventures to join forces if they honestly believed they could obtain this potentially Android damaging IP on the cheap Thus, Kodak should see a nice pay and so should investors holding long positions as pertinent news hits the wire.

    In any case, it seems plausible to me that we see the lesser valuable lot to one bidder around 500 MIL, while the larger lot of digital imaging patents selling for around 1.2 to 2.2 BIL; this assuming the inclusion of '218.

    This scenario would net Kodak 1.7 to 2.7 BIL. Add this to the 1.2 BIL Kodak reported in it's cash coffer in it's latest 10Q filing, and perhaps some additional asset sales, and Kodak may be able to satisfy it's immediate creditors at .50 on the dollar and re-reemerge from BK by year end.

    The bigger question at hand is this; what will Kodak do to remain viable in 2013? Commercial printer sales, and perhaps OEM manufacturing for other printer brands? There should still be some viable revenue in film, the old cash cow that created this icon in the first place. Kodak has always been a pioneer in manufacturing and packaging ingenuity. It is also said Kodak is renowned for the highest quality in printer ink. Perhaps ink becomes an OEM specialty as well? The infrastructure is already in place, so the decision to exit the digital camera business and refocus on printing actually prove to be a very wise decision on the part of the existing BOD after all.

    I am certainly not advocating that Kodak will return to the good ole days when Kodak stock traded in excess of 35.00 per share. Nor am I asserting that Kodak will reemerge as the blue chip stock that once donned the Dow Industrial Average.

    What I am advocating are the facts as I see them. Kodak (EKDKQ) closed today's session around .345 with a market capitalization of approximately 100 MIL. This seems rather low for a company with approximately 4 BIL in sales, 1.2 BIL cash in hand, and listing over 5 BIL in assets. Add in the sale of it's digital imaging patent portfolio for an amount between 1.7 and 2.7 BIL, and we may see a thriving dog with trading in excess of 1.00 per share as early as next Monday; i.e. the deadline in which Kodak is scheduled to release news concerning the patent sale. Kodak may never again be King of the Jungle, but in the end, a thriving dog is better than a defeated lion.

    Disclosure: I am long EKDKQ.PK.

    Tags: KODK
    Aug 08 9:32 PM | Link | Comment!
  • Yippy, Inc. (YIPI.PK): Merging With MuseGlobal To Improve The World Of Online Search. YIPPPPEEE!!!

    Yippy, Inc. (OTCPK:YIPI) recently announced merger with MuseGlobal, Inc., a leading provider of content integration, positioning YIPI to compete with the big boys (Google, HP/Autonomy, etc) via a patented technology that many believe will revolutionize the way online search engines process, sort, and deliver the mass amounts of data available in the ever expanding world of online search.

    "Big Data is a major problem for search engines. If you can't cluster search results and dynamically rank and normalize unlimited information sources whether it is a consumer search engine such as Bing or Google, or an enterprise model like HP/Autonomy, in my opinion you're out of the game of search in 3-5 years. The future is Data Virtualization or Data as a Service in the cloud," says Rich Granville, the YIPI CEO.

    "Google is far less effective today due to their index growing from 3 billion pages in 2003 to 50 billion in 2011. It is information overload, and clustering is the only logical answer to that problem."

    "We are in a position to underprice and out-produce the competition by unimaginable numbers through our Data Virtualization model. We're talking 50% savings across the board for data services provided by companies such as HP/Autonomy. We have the finest programs, services and client attention available anywhere. Welcome to the Cloud," says Kristina Bivins of MuseGlobal, Inc.

    YIPI.PK had increased on record volume from under $1.00 per share heading into the month of June, to over $2.20 per share, just 8 trading days later, on June 12th. That is over 100% return in 8 days on a cloud play. After all the companies registered trademark is "Welcome to the Cloud".

    During trading today, YIPI suffered a short terms market sell off to an intraday day low of just below $1.00 per share. It is my opinion that market maker short selling tactics were used to induce panic selling. It appeared to work, but YIPI.PK has a very small float of approximately 8 MIL shares and bulls were easily able to take the stock back and drive the price back up to close at over $1.50 per share.

    YIPI.PK 's small float of 8 MIL shares, recent merger with MuseGlobal, recent acquisition of Macte Labs, proprietary search technology acquired from Visimo (an IBM Company), the fact that IBM still owns a 10% stake in YIPI, and the fact that I have personally used yippy.com for online research and can vouch for the advantages the technology brings to the end user, all combine to make me and many others very bullish on YIPI.PK.

    Also worth nothing, YIPI.PK should no longer have the .PK on their ticker since they uplisted to the OTCQX in May 2012.

    Disclosure: I am long OTCPK:YIPI.

    Jun 14 2:50 AM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

  • $PSUN lowered Q4 EPS guidance to a loss of .12 to .17... analyst were expecting a loss of .11... one word FAIL
    Dec 5, 2013
  • IMO DIP financing may be $JCP only path for obtaining cash to fund 2014 ops... even Kodak had over 1 BIL cash at BK filing.
    Sep 25, 2013
  • $EK to be trading again soon under this ticker??? IMHO there will be hidden shareholder value in new equity offering... $KODK
    Aug 20, 2013
More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.