Apple Loses in Kodak Patent Suit but Kodak Stock Falls
by Tyler Goering
July 19, 2011
After a Premarket Surge, Kodak Hits 52 Week Low
Eastman Kodak had a good morning before the bell with positive news regarding its patent infringement case filed by Apple in January 2010. The U.S. International Trade Commission issued a notice terminating its investigation into alleged patent infringement on camera design based on a complaint by Apple. This led to a 5.2% jump premarket but these gains were quickly lost during the rest of the day as the Wall Street Journal published a scathing review of the company's bond holdings.
With only $1.3 billion in bonds, investors are worried that Kodak's move into consumer printers and cameras would alleviate some of the pain felt by the loss of the companies prized film manufacturing industry. While executives tried to assure investors that bond repayment was possible by the 2013 due date, many were not willing to wait, deciding instead to pull funds leaving the stock with big losses.
At the close of the market, EK was down to 2.31, -8.53% for the day and looked like it would have trouble rebounding as investors grow increasingly skeptical as to whether Kodak can fix the holes left by the consumer switch to digital film.