Originally Posted by Photo Engineer
As I have said on several threads "The Street" wants Kodak out of the film business and will keep pushing for it to happen. The analysts covering the Company are young, tech-savvy, Blackberry toting financial professionals. They consider film to be a dead technology and they have enormous influence on Kodak's share price.
Until and unless the film division is sold (whether to outside investors or via a MBO) it will be viewed as an albatross around Kodak's neck by the financial community. The analysts are only interested in financial performance and have no "sentimental interest" in the Company preserving what is perceived to be a dead business line.
The only equation anyone analyzing the Company cares about is whether the discounted present value of the remaining cash flow of the film business is greater than a likely sale price. Perez is arguing that this is still the case and so the film division should be kept in order to finance the Company's switch to digital.
When the time comes that the PV of the DCF is only about equal to a sale price (actually will still have to be somewhat higher to make it attractive) will the film division be spun off.