Sunday, November 27, 2011

Today's Major Market Move: Eastman Kodak (EK) Down 79% for the Year

The worst performing stock in the S&P 500 in 2011 would not be a surprise to most people. Eastman Kodak (ticker: EK) is down almost 80% for the year and is on the verge of becoming a penny stock. Here's a list of the worst performing equities in the S&P 500:

Click here to go to the live table.

I'm not sure what the rules are for removal from the S&P 500 but EK has to be perilously close. Looking at EK's earnings over the past 4 years, we see why the stock price has not performed well. Only 4 out of the past 15 quarters have seen positive earnings and the next 3 quarters are projected to be in the red as well.

Click here to go to the live chart.

At the beginning of the month the company announced they were going to try to generate more cash by taking on more debt and putting more effort into monetizing their patents. This article from the NY Times indicates that many analysts are concerned about their cash position and burn rate.
But investors were most concerned about how quickly Kodak was spending its cash, and on Thursday, the company said it had $862 million left at the end of the third-quarter, 10 percent less than it had at the end of the second quarter.

The company expects to end the year with $1.3 billion to $1.4 billion in cash.

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