Eastman Kodak Company (EKDKQ)’s Ready for Another IPO, but Are Investors?

Though in a high-growth space, the company will face fierce competition from the gorillas in the industry. Competitors like Canon Inc. (ADR) (NYSE:CAJ) were quick to embrace digital technologies and by now are seasoned veterans. Canon has many divisions it can lean on if one — say, commercial printing — becomes sluggish. Eastman Kodak Company (OTCMKTS:EKDKQ), to a degree, will not have these luxuries. As for investors, Canon Inc. (ADR) (NYSE:CAJ) is a mega cap with a chunky 4.7% dividend that is likely the more risk-averse pick. The stock may be down more than 18% over the last 12 months, but there are signs of improvement on the horizon.

Canon recently signed a more-than-$110 million contract with the Department of Defense, and as fello Fool Rich Smith notes, this could be just a fraction of the contracts coming Canon Inc. (ADR) (NYSE:CAJ)’s way. Another advantage Canon will hold over Kodak: a beautiful balance sheet, with current assets handily covering total liabilities.

But just because there are other attractive companies in the space doesn’t mean that Kodak will be a bad stock to own. Investors should closely examine the S-1 filing (offering documents) when it becomes available to get an understanding of what this new iteration of Kodak really is, and more importantly, what it’s worth. It’s too early to say get behind the stock (or not), but this may be a special situation worth watching.

The article Kodak’s Ready for Another IPO, but Are Investors? originally appeared on Fool.com is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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