July 1, 2011
Sorry, No Jackpot
Eastman Kodak's hoped-for billion dollar windfall didn't happen last night. Yesterday the US Int'l Trade Commission was set to rule on Kodak's patent claim against Apple and Research in Motion. In an ambiguous decision, the commission affirmed part and reversed another part of a previous ruling, and set yet another deadline for a final decision. I hope Kodak hasn't spent that billion yet, because it looks less and less like they are ever going to see it. Watch for the stock to take a hit today. The shares have been trading as if each one came stapled together with a lottery ticket. But that ticket has been scratched off and, so far at least, it hasn't been a winner.
Up Next: Earnings Season
Within the next few weeks you will see 2nd quarter earnings reports from most major companies. There will be the typical mixed bag, but the theme will be better, stronger, higher. Look for dividend increases as well. The US economy continues to recover and grow, and investors can be increasingly confident about the strength of well managed companies.
Now How About the Rest of Them?
Lee Farkas, convicted of bank and mortgage fraud, has been sent to prison. Good enough; justice served. You might ask "Who is this guy, did he wreck Bear Stearns? Did he bankrupt Lehman Brothers? Was he behind the mismanagement at AIG?" The answers would be no, no, and no. He ran a mortgage company called Taylor, Bean & Whitaker. Who? Right, you never heard of them. Now that Mr. Farkas off to jail, when will they go after the criminally incompetent idiots who blew up the mortgage and banking sectors? Hello, Preet Bharara - we're waiting.
Brighton Securities wishes you a happy 4th. We hope you enjoy a wonderful long weekend with family and friends.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).