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January 5, 2011

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No Time for a Picture


Kodak (EK,$EK) on the Brink of Bankruptcy and ValuEngine Rates it a Sell
Eastman Kodak Company is engaged primarily in developing, manufacturing and marketing consumer, professional, health and other imaging products and services. The company is made up of the following operating segments: Consumer Imaging, Kodak Professional, Health Imaging, and Other Imaging. Once an industry giant and symbol of US intellectual and technical mastery, Eastman Kodak now teeters on the brink of bankruptcy--again. The firm has been unable to replace its film business as that medium has been supplanted by digital imaging. Kodak's forays into digital picture frames, digital cameras and sensor systems, and other new products (such as printers) have not been able to staunch the bleeding from the balance sheet. ValuEngine has issued a SELL recommendation for EASTMAN KODAK on Jan. 05, 2012. Based on the information we have gathered and our resulting research, we feel that EASTMAN KODAK has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE P/E ratio and momentum.

Based on available data as of Jan. 05, 2012, we believe that EK should be trading at $3.1. This makes EK 84.82% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For EK, we base this on actual earnings per share (EPS) for the previous four quarters of -$2.68, forecasted EPS for the next four quarters of -$1.86, and correlations to the 30- year Treasury bond yield of 3.04%.

ValuEngine Forecast Target Price*


1-Month 3-Month 6-Month 1-Year 2-Year 3-Year 0.49 0.47 0.46 0.45 0.4 0.34

Expected Return
3.97% 0.44% -1.17% -5.07% -15.60% -27.64%

Valuation & Rankings


Valuation 1-M Forecast Return 12-M Return Sharpe Ratio 5-Y Avg Annual Return Volatility Expected EPS Growth Market Cap (billions) Trailing P/E Ratio Forward P/E Ratio PEG Ratio Price/Sales Market/Book Beta Alpha 84.82% undervalued 3.97% -91.53% -0.83 -80.11% 96.36% 30.65% 0.13 n/a n/a n/a 0.02 n/a 1.71 -0.92 Valuation Rank 1-M Forecast Return Rank Momentum Rank Sharpe Ratio Rank 5-Y Avg Annual Rtn Rank Volatility Rank EPS Growth Rank Size Rank Trailing P/E Rank Forward P/E Ratio Rank PEG Ratio Rank Price/Sales Rank Market/Book Rank Beta Rank Alpha Rank 100 99 2 7 6 13 65 45 1 n/a n/a 98 n/a 22 2

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MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 70.78% 29.22% 36.63% 12.29%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
-0.34% 0.13% 0.09% -0.56% -0.92% 0.11% -0.07% -0.43% -0.39% 0.08% -0.70% -0.02% 0.40% -0.58% 0.21% -0.59%

MTD
-0.28% 0.16% 0.15% -0.49% -0.70% 0.14% 0.00% -0.37% -0.31% 0.19% -0.59% 0.02% 0.50% -0.52% 0.29% -0.52%

YTD
-0.28% 0.16% 0.15% -0.49% -0.70% 0.14% 0.00% -0.37% -0.31% 0.19% -0.59% 0.02% 0.50% -0.52% 0.29% -0.52%

Valuation
2.08% overvalued 12.17% undervalued 5.54% undervalued 2.82% undervalued 3.88% overvalued 6.85% undervalued 7.74% undervalued 6.25% overvalued 11.78% overvalued 12.24% overvalued 12.33% overvalued 0.91% overvalued 6.33% overvalued 4.45% overvalued 1.65% overvalued 10.14% overvalued

Last 12MReturn
-10.23% 8.31% -25.20% 5.37% -13.18% -19.69% -6.40% -2.44% -6.37% -8.64% 7.16% -9.99% -16.25% 1.85% -16.19% 2.65%

P/E Ratio
15.77 22.69 28.98 28.36 34.97 42.78 22.91 19.03 20.44 23.87 28.77 14.78 35.87 21.8 30.11 23.94

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