Kodak dropped from Dow

**Tom Johnston** · 2-Apr-2004, 18:40

I think some (Bill, in particular) may be missing the point. The thread is not about the wisdom of making any particular stock investment. The thread is about the health of Kodak and how that can impact on photographers. Being removed from the Dow can be an indication of company performance and how investors perceive that performance and that, ultimately, can have an impact on the availability of products that we use. I think that is the point not whether someone should or should not invest in Dow stocks, index funds, etc.

**George Stewart** · 3-Apr-2004, 13:10

In the not to recent past I made predictions of Kodak's removal from the Dow and ultimate bankruptcy. As half has come true, I stand firm on the rest of the prediction. This was made shortly after they droped their own line of MF digital backs. Imagine, we're just a few short years into the digital revolution and Kodak has already retrenched in digital. They're a paper and chemistry company with a culture built around cash-cow products with life spans measured in decades. They will be unable to adjust the corporate culture and learn about tight margins and products that last only about 18 months before becoming obsolete. They're obese and don't comprehend what needs to be done to run in the marathon they've found themselves in. their competion are lean, high tech companies that have been hardened by years of tight margins and worthy competitors.

They couldn't even make their own cameras. They had to buy Chinon to make P&Ss. Their SLR is only assembled by them (body and chip made by other companies).

George

**Francis Abad** · 3-Apr-2004, 13:27

George, "YOURS" on the second half of the prediction. Being part of an index does not necessarily imply solvency, nor does being thrown out of it imply impending Ch. 11. It is merely perception ruthlessly marketed by fund managers in order to make people believe that there is less risk in an index or in its individual components than those not in it. Educated traders know this to be false - especially post dot.com fiasco. Volatility is everywhere, in blue chip or not. People perceived Enron to be a great buy, almots blue chip even. Not even at zero! Believing that any index is representative of the market is naive. Being dropped from an index is a wake up call for sure. And just like Apple in the late 80s early 90s I believe Big Yellow will bounce back. I will take those warrants at 1 cent please!!

**Francis Abad** · 3-Apr-2004, 16:24

Hedge fund managers (most of them anyway) are only really good at TWO things: taking their management fees and cooking the books.

**Christopher Nisperos** · 5-Apr-2004, 15:10

Friendly correction re: "using a horse-driven sleigh" It's horse-drawn.

Sorry, but that's the only valuable contribution I can make to this thread. I don't know my Dow from an Enron in the ground. I thought Dow was a chemical company and Nasdaq a town near Damascus.

George Eastman's biography says that his suicide note read, "Why wait?". Ironic. That's the same phrase used by EK executives over the years when deciding to discontinue certain products.

End of humorous interjection. Please continue with the Eastman spinners.