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Bankruptcy of Eastman Kodak

  • #1
  • First Post: Edited 9:18am Oct 31, 2011 8:37am | Edited 9:18am
How much is the probability of bankruptcy of Eastman Kodak like General Motors?

There are rumors about it, but the company officials deny (though it is normal scenario for bankruptcy). Recent approach for selling patents can work; but is it significantly probable to witness another bankruptcy in the Wall street?
  • #2
  • Edited 9:35pm Nov 6, 2011 6:22pm | Edited 9:35pm
There is actually an indicator for this, with a reported success rate of 72% accuracy predicting bankruptcy within two years called the Z-score.

I don't know all of the input variables for the Z-score, but , if you had a strategy that involved long term options, you could create a fixed downside for yourself, and short a company that's highly probable to go bankrupt.
  • #3
  • Feb 21, 2012 12:07am Feb 21, 2012 12:07am
Quoting etrade
How much is the probability of bankruptcy of Eastman Kodak like General Motors?

There are rumors about it, but the company officials deny (though it is normal scenario for bankruptcy). Recent approach for selling patents can work; but is it significantly probable to witness another bankruptcy in the Wall street?
This post of yours was prescient.

"The number one take-away from Kodak’s bankruptcy is this:
By not selling the company, management messed up an opportunity to save the company image and protect investors. Kodak failed because management attempted a nearly-impossible recovery rather than a well-timed and strategic exit." [ChartProphet, SeekingAlpha]


How true!
  • #4
  • Feb 21, 2012 7:57pm Feb 21, 2012 7:57pm
Quoting beachallstar
There is actually an indicator for this, with a reported success rate of 72% accuracy predicting bankruptcy within two years called the Z-score.

I don't know all of the input variables for the Z-score, but , if you had a strategy that involved long term options, you could create a fixed downside for yourself, and short a company that's highly probable to go bankrupt.
Hi.. Is there any indicators similiar to Z-score that can be applied to countries? I know Z-score is for corporations
  • #5
  • Mar 18, 2012 11:29am Mar 18, 2012 11:29am
Quoting ccreative
Hi.. Is there any indicators similiar to Z-score that can be applied to countries? I know Z-score is for corporations
not sure if you can apply it countries but one sure indicator will be bailouts that was executed ie Greece bailout is a strong indication of the strength of the country's economy but whether they will default (bankrupt) is another matter
  • #6
  • Last Post: May 19, 2012 4:21pm May 19, 2012 4:21pm
One interesting thing about EK is that they actually invented the digital photography initially a long ago, but the management has rejected the idea to rebuild the business because the company was a leader of film photography already. They frozen any further development and kept the invention in secret so that no any company can promote digital photography. As you know it was a huge mistake, then digital photo arise, EK drop to floor with their OLD film technologies. This is what happens with companies stopped in their evolution.
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