Yes, I started a small position in PRD last week. For most people though, it's a stock to bypass. Too many negatives. (-g-, Sorry.)
Management-- man, they really get criticized by everyone. They do well for themselves it seems, yet the stockholders and employees suffer. No matter who's running the business, the management team cannot deliver performance. An on going problem for at least a decade. In addition to the Kodak and Fuji conventional film war, Polaroid now of course has the digital camera boom to contend with.
Here are three aspects of Polaroid which I am considering, or have considered:
1. They're really a technology company. The boom will be in their smart cards, other things-- not instant film. (I'm still trying to understand if this is a reasonable argument. I suspect they will be tied darn close to instant photography.)
2. PRD's I-Zone Instant Pocket Camera is the Number 1 selling camera
in the USA. After only 2 months in the market, according to PRD's press release. (This is one reason I bought the stock). PRD also claims the #2 and #3 "fastest selling" cameras. Counter argument: Data is for a short period of time, nobody knows if the sales have "legs", and there is some question whether sales - the camera, the film - will actually translate to bottom line profits. Some people say it could very well be profitless. PRD has not ever been able to produce another significant and profitable new product, I suspect.
3. In the four previous times in the past 14 years when PRD was at this level, the stock rallied. I'm betting it will happen again. Counter argument: pretty poor reason for buying the stock. Especially as the company may have been stronger in earlier years.
Paul |
