Kodak gives shareholders a reason to smile
June 24, 2008 by Tisa Silver
Filed under Finance
In one of few bright points in today’s morning session, Eastman Kodak has announced plans to buyback up to $1 billion of its outstanding stock.
News of the buyback sent shares flying as high as $14.45, representing a 17 percent increase from yesterday’s close of $12.34 per share.
Buybacks usually indicate a firm’s belief that shares are currently undervalued and the stock is poised for an increase. In recent days Kodak’s stock was trading at a 52-week low of $12.20, so it appears that this buyback couldn’t have come at a better time…say cheese :)
Shouldn’t a company with a dying business be devoting its capital to a long term approach to grow the company rather than buying back stock to give shareholders something to smile about.
I feel a little skeptical about this buyback I believe its just a ploy to get stock prices up. Kodak was trading at a 52 week low and there company was not looking to great. Kodak to a chance in buy back the stock in hopes that it would pay off.. and it looks like they gambled right.
Kodak may be at a higher price now, but the public has to wait and see if it will hold. Who knows maybe they will be even worse off than before.
It really does seem like this was just a ploy to beef up the stock price a little. Like the previous post said they’re dying. They don’t have a long term approach, just keep their head above water. Even the word “Kodak” evokes imagery of old time photographs. All of their products are stuck in the middle of the shelf somewhere between sony and canon. But who knows, maybe they know something we don’t.