Is Bankrupt Eastman Kodak (EKDKQ) Worth 8-Fold More?
Interestingly, after falling as low as $0.28 per share after filing bankruptcy on January 19th, shares of Eastman Kodak (Nasdaq: EKDKQ) [formerly (NYSE: EK)] have been quietly creeping higher. Today shares are up 6.8 percent to $0.44.
Apparently there are plenty of investors that see value in the stock even with the bankruptcy filing, which normally involves little or no value being assigned to the common stock holders. One investors in particular thinks the stock is actually worth more than 8-fold more than what it is currently trading for.
On Thursday, Wapiti Partners, L.P., a beneficial owner of more than 1,000,000 common shares of Eastman Kodak, announced that it formed an ad-hoc equity committee of common shareholder.
The committee was formed "to protect the substantial interests of common shareholders and will seek to organize an effort to ask the United States Trustee to appoint an official equity committee."
Wapiti said it is taking this action because its analysis of Kodak’s assets and liabilities indicate there is at least $979 million ($3.63 per share) of value (net of all debt and legacy liabilities) available for common shareholders.
Investors should be careful, as the company themselves isn't saying if the stock has any value.
"At this time, Kodak cannot comment directly on the impact of the Chapter 11 filings on the value of the Company's securities. You may wish to consult a professional investment advisor with questions regarding your personal investment decisions."
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Apparently there are plenty of investors that see value in the stock even with the bankruptcy filing, which normally involves little or no value being assigned to the common stock holders. One investors in particular thinks the stock is actually worth more than 8-fold more than what it is currently trading for.
On Thursday, Wapiti Partners, L.P., a beneficial owner of more than 1,000,000 common shares of Eastman Kodak, announced that it formed an ad-hoc equity committee of common shareholder.
The committee was formed "to protect the substantial interests of common shareholders and will seek to organize an effort to ask the United States Trustee to appoint an official equity committee."
Wapiti said it is taking this action because its analysis of Kodak’s assets and liabilities indicate there is at least $979 million ($3.63 per share) of value (net of all debt and legacy liabilities) available for common shareholders.
Investors should be careful, as the company themselves isn't saying if the stock has any value.
"At this time, Kodak cannot comment directly on the impact of the Chapter 11 filings on the value of the Company's securities. You may wish to consult a professional investment advisor with questions regarding your personal investment decisions."
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