Bankruptcy has not been friendly to Kodak. The once-important camera company — now a printing company — is worth less than 20 cents a share today, a completely different picture than its glory days in the mid-1990s, when the price briefly surged beyond $90. Now that the share price is so low, would it be wise to invest in the company in hopes that it emerges from bankruptcy protection? Matt Krantz over at USA Today says no, and writes,
Some investors figure that companies that were as large and powerful as Eastman Kodak can’t just vanish. And because of that, they think that when they see the shares trading for just 22 cents that they can’t miss. But investors who assume this are missing a few key points that wind up resulting in huge losses and disappointment.
When companies undergo bankruptcy restructuring, common stockholders are last in line for what’s left of the remaining company. It’s pretty common for the common shares to be delisted from a stock exchange and ultimately be moved to a lightly regulated marketplace. That’s what’s happened with Kodak shares. Some shareholders find getting out of these positions can be costly or troublesome.
He says that while it’s possible that Kodak will succeed in its plans of emerging from bankruptcy next year, it’s unlikely that anyone still holding on to shares in the company will see their wallets getting fatter.
Ask Matt: Are Eastman Kodak shares a bankrupt bargain? [USA Today]
Image credit: Illustration based on Kodak Building in Rochester, NY by Viktor Nagornyy
Reuters is reporting that US-based investment firm TPG Capital has expressed interest in pouring $1 billion into Olympus in a joint deal, and has notified other possible suitors including Sony, Canon, Fujifilm, and Panasonic.
Nearly all of Olympus’ profits are generated from its dominant 70 percent share of the global market for flexible diagnostic endoscopes. The steady cash flow from that business has allowed it to prop up its digital camera business, which is on course to lose money for a second straight year.
TPG would consider taking over the other less desirable parts of the firm to facilitate a deal. This could include the digital camera operation, which is in need of a major overhaul, including job cuts, the person said.
It’s interesting that the camera division is one of the “less desirable parts” of Olympus, since that’s what most consumers know the company for.
TPG willing to invest $1 billion in Olympus [Reuters]
Image credit: OLYMPUS E-P1 by DORONKO
If you’re looking for a fun photography-related way to invest some money, you might want to look into photobook collecting. The Guardian writes that prices have been soaring in recent years, and not just for expensive rare editions:
Photobooks are expensive to produce and, while demand is too small to warrant long print runs or multiple reprints, it is large enough that the books remain desirable, soon become scarce and can eventually be very valuable. This means new editions costing between £20 and £60 can double or triple in price in as little as two to five years. In 10 or 20 years – and if the work of the photographer becomes particularly fashionable – the price may increase even more.
[...] one of the great things about photobook collecting is discovering the work of emerging photographers whose early books may become sought after. A good place to look is among the current boom in self-published titles.
They also list a number of currently in-print photobooks that can help you get started.
Photobooks – affordable collectibles that are soaring in value [The Guardian]
Image credit: Paris Photobook by rthakrar