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Steve Chiotakis: Eastman Kodak’s stock has been slammed this week. The company went to its bankers and used $160 million of its credit line. It’s a small amount, but a problem because investors didn’t know Kodak was that strapped. Now they’re worried about the company’s future.
Here’s Marketplace New York bureau chief Heidi Moore.
Heidi Moore: We have Facebook photos, iPhone cameras and instant uploads — so it’s not surprising that a company that made its name on photographs is struggling. But in the case of an icon Eastman Kodak, it’s still hard to believe.
Scott Dinsdale is an analyst with KDP Advisors.
Scott Dinsdale: You know, I get a lot of calls saying, people saying, wow I can’t believe this is happening, Kodak’s such a great company. I think the thing that’s been surprising to me is the emotional attachment investors have had to the company.
Kodak has been trying to re-imagine itself.
Dinsdale: They’re trying to personal printers, they’re going into commercial printers, they’re going to try and save what they can of the photo business.
But the makeover is taking too long. Dinsdale has been warning investors for a year that Kodak is in trouble.
Dinsdale: Wow, they’re getting close to the end of this cliff and they’re really starting to pick up speed. It really does look like they’re going to run out of money, and probably within the next six months.
Dinsdale believes Kodak’s iconic name is worth money. But probably only if the company is cut up in pieces.
In New York, I’m Heidi Moore for Marketplace.