Steve Chiotakis: Kodak's gotten a warning from the New York Stock Exchange that it will get booted off the big board if it can't boost its average stock price above a dollar a share. The company's had some deep financial issues and now faces the
prospect of delisting.
James Angel is professor of finance at Georgetown University. He's with us from Washington.
James Angel: Good morning.
Chiotakis: What does it mean for a company to be delisted? What does that mean?
Angel: Well it means that a stock exchange -- like the New York Stock Exchange -- says, "Your stock will no longer be traded on our platform." It still might be worth something, but it will be traded in a place where you'll find stocks that don't qualify with the listing standard of the major stock exchanges.
Chiotakis: This is a moniker -- though -- for a company -- right? -- that's not very positive.
Angel: No. It's a very bad sign. Very few companies that are delisted ever rise from the ashes.
Chiotakis: So let's talk about -- then -- why Kodak is in the ashes -- as you say? What happened to this once very powerful film company?
Angel: Well, technology has changed. Kodak had a near monopoly on the film business. But with switch away from film to digital, they really have not made the transition.
Chiotakis: You're talking about celluloid film, right?
Angel: So, you're talking about a company where it's comparative advantage was the secret mastery of all the chemistry in the film process. But now, they're just another competitor in digital cameras.
Chiotakis: Will it survive James?
Angel: I don't know. I try to stay out of the crystal ball business, but the omens do not look good.
Chiotakis: James Angel, professor of finance over at Georgetown University in Washington. James thanks.
Angel: Thank you.