Eastman Kodak Delisting Notice a Non-Event
Lately, it seems like this blog is becoming all Eastman Kodak(EK) all the time. Odd for a stock we don’t even own. Some Kodak bulls have commented that we interpret every piece of Kodak news negatively, so we felt we should comment that today’s announcement that Kodak has received a continued listing standards notice from the NYSE is insignificant and should not factor into any appraisal of the company’s prospects. There is nothing surprising about the notice; it merely states that the company’s average stock price has been below $1 for 30 consecutive trading days- something anyone with a calendar and internet access ought to have known. It has no bearing and passes no judgement on the company’s prospects.
Kodak has 6 months to remedy the situation. By that point, either the stock will have rebounded above $1, or the company’s financial situation will be dire indeed. We continue to think that Eastman Kodak is likely to file for bankruptcy this year- but this delisting notice has nothing to do with it.
Disclosure: The author holds no position in EK
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