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.

Good morning.

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.