Could Kodak Rise from the Grave?

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Could Kodak Rise from the Grave?

A Case Study Analysis

In business school we analyze various case studies to analyze why companies fail and others succeed. The purpose is to gain knowledge and experience without having to go through the pain ourselves. Essentially don't make the same mistake. These case studies are like Pokemon, you gotta collect them all.

One such company fell prey to being fat and lazy at the top, in fact it had developed one of the first products that lead to its downfall. In 2016 they generate over 1.5 billion in revenue (383 million in profit, 16 million in net income) not bad, but their stock really performs poorly and crashes more and more everyday. Hard to believe, but their market cap is 227 million as of writing this article. Let that sink in, this company has FUD written all over it. So why should you even look at it? What is this company? Let's take a look:

The company is Kodak. Since the advent of the digital camera and camera phone, they have been bleeding money and share price in stock. January 9th they announced the creation of "Kodakone" a cryptocoin created for the purpose of monetizing photos. The main reason why photos are plagiarized and stolen all the time are solved (potentially) with blockchain tech.

Can't charge very small fees for photos due to cc companies
No way to monitor the photos and see if they are used in other places easily
Sketchy sites from which to purchase them or not really compiled in one place
All of these problems are solved with Kodakone. from ICODROPS:

"The KODAKOne image rights management platform will create an encrypted, digital ledger of rights ownership for photographers to register both new and archive work that they can then license within the platform. KODAKCoin allows participating photographers to take part in a new economy for photography, receive payment for licensing their work immediately upon sale, and sell their work confidently on a secure blockchain platform."

This allows photographers to charge pennies for their photos and a marketplace to post them. The tech is also supposed to scour the internet for plagiarism.

https://icodrops.com/kodakone/ and https://kodakcoin.com for more information.

$2million in presale
Team looks pretty good as well

Market size:
https://www.popphoto.com/news/2013/0...t-every-minute
2014 Data:
880 BILLION photos will be taken
27,800 photos are uploaded to Instagram every minute
208,300 photos uploaded every minute to facebook

Take that stock with a market cap of ~$250 million and now if each photo is sold and 0.001 is charged as a fee then that would add another $800+ million in revenue.

Add a typical 12-17 multiplier most stocks have and that means the market cap could easily reach $11 billion resulting in a 48X multiplier, but most tech stocks have a multiplier of 30-40 (unless they are google or netflix which could be 100+) making market cap around $35 billion and the potential gains 15700% or 157x.

Take in consideration tech companies golden number is the $600 billion mark and you are talking about 2600X (260,000%) gains.

Invest $1000 and you would then have $2.6 million.

Let those numbers sink in...that is a huge potential for revenue even if it is in fractions of a penny per photo. I'm sure it is even more now and as other countries adopt more and more this will get huge.

Just a thought...but I'm not a financial advisor. What do you think?

'The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.'