Normally, more than 50% of Kodak profits come from film for still cameras. Movie film is a totally different market. Kodak has many of the ingredients for a successful short sale--declining or flat film sales, mediocre, rather uninovative management. The current price, in my view, already reflects the bad news. Therefore, even though the stock doesn't have much promise on the up side, it also may have little further risk of going lower. Additionally, Kodak is a component of the Dow Industrials and is likely to perform with that group, or possibly just a bit less than the average of the DJIA. Considering that many analysts believe the DJIA will begin to pick up later this year, and that Kodak is a DJIA component, I don't think a short sale is a very good idea at these prices.
I had a short position in Kodak in October, 1987. It sure helped me survive that crash. Shorting is very dangerous, as the losses can be infinitely large. The time to short is when the market is at VERY high levels, not where it is now.
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