Kodak's Blurry Future

Think of Eastman Kodak (EK) and what comes to mind? Camera film, which virtually no one uses anymore. Kodachrome, that household brand name of yesteryear, will be officially phased out by the end of 2009. While the old stalwart has made various attempts to continue its market dominance into the digital age, it's been in a tailspin over the last decade.

This former Dow Jones industrial average stock has been declining steadily, even during robust market years, and now sells for a mere $4.25 a share.

In September, short positions on EK increased by more than 12 million shares--tops on the market--amid rumors the 120-year-old firm could go out of business.

A major debt refinance plan announced in late September failed to impress investors. The stock has continued its descent, falling 35 percent over the last month. The company will very likely report a fourth-straight quarterly loss in late October.

EK is quickly backpedaling to its historic low of $2.00 back in March. Hop aboard the shorting bandwagon while you can.

Action to Take: Short Eastman Kodak (EK)

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