Ok, I've hit the $7 to $9 price target for Kodak (18.7% capital appreciation) well before my "6 to 9" month time frame (less than one month). I guess it's not really hard to find an undervalued stock which will recover quickly in these volatile times. Also, don't forget that this stock has recently been giving a regular bi-annual dividend of $0.25c since late 2003 (so consider this in your valuation).
However, my 6 to 9 month outlook remains optimistic. My rating:
If you are looking for divdend income (as many are in the current environment) I'd rate this a buy (yield is currently at 6.9, but will probably drop - hopefully due to stock price increase rather than dividend drop).
If you are looking for capital gains, I'd rate this a hold. *AND* watch the news on their printer product development and sales. It's the only thing that can save them or make them different from everyone else.
Trading spread (unchanged):
Sell @ $9 (based on yield and PE)
Optimizing After-Tax Returns on Options
1 year ago
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