Kodak shares are down nearly 90 per cent since 2007. They plunged nearly 25 per cent last week after an earnings miss.
Now Citi predicts another 11 per cent decline in 2011. Analyst Richard Gardner names five reasons for reiterating a sell rating.
First, 25-year high silver prices are raising producer costs.
Second, high camera inventory will reduce sales.
Third, people aren’t buying point-and-shoot cameras anymore.
Fourth, printing plates are getting cheaper.
Fifth, growth businesses like inkjet printers will not be profitable until 2012, according to Citi.
Obviously, the biggest thing dragging down Kodak is the shift from film to digital cameras. It’s still not clear whether Kodak can survive as a company, with bankruptcy odds at 5.7% last summer according to Audit Integrity.