Eastman Kodak (NYSE:EK) Picture Perfect Opportunity to Start First Quarter 2007
Eastman Kodak Company (NYSE:EK) is the world's foremost imaging innovator. With sales of $10.7 billion in 2006, the company now focuses on its digital transition and traditional products and services to take, print and share pictures anytime, anywhere.
The companies first quarter earning were enough to get the stock to break through significant levels of resistance. From here, the stock has pulled back nicely and in doing so has presented us with an opportunity to buy back in on solid support levels. The magic number of Kodak's stock here is $27.09. At this level (which EK is fast approaching), the stock should see strong support. I look for the bounce to occur very close of this number. The graph below illustrates the resistance level and clearly shows the declining volume levels as the stock sells off into our buying range.
Sector: Consumer Cyclical
Current Price: $27.53
Moving Average Price Compare
EK is trading above its 50 week moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.
The 13 and 50 week moving averages indicate that EK is in a bullish trend. This is because the 13 week moving average is above the 50 week moving average.
The MACD for EK currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9week moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.
The RSI recently dropped to 60.17% from above the critical level of 70. This signals that EK is no longer overbought and the internal strength of the stock appears to be waning.
Notice the declining volume as the stock consolidates its recent run up here. Some of the lesser volume is because of the shortened holiday trading week but still a good sign that as the stock closes in the support level marked above, it will hold. This presents a solid company in the midst of a turn around and a low risk entry point.
Kodak's Inspiration Tour kicks off this week in Minneapolis at the Taste of Minnesota, and will make 13 additional stops in 12 cities throughout the United States this year. At each stop, the massive 4,000-square-foot interactive exhibit will educate and motivate America's photo enthusiasts to do more with their pictures.
"We designed the Inspiration Tour to inspire consumers to be creative and have more fun with photography," said Michael Korizno, General Manager for the Americas Consumer Digital Group, and Vice President of Eastman Kodak Company. "Kodak gives amateur photographers the tools right at their fingertips to take amazing pictures and share them in truly innovative ways. We're going to show America just how easy - and rewarding - it can be to capture perfect images and design unique, personal products that showcase their memories."
The photography industry has seen a recent push of institutional money over the course of the last 3-5 weeks. Friday I purchased EK as it descended into my buying range. I like to give an analysis of stocks before the move happens. All the correct signs I look for point to a buy here. Too many sites I see out there today tell you about stocks that have already made their move. This doesn't help you make money, but rather informs you of the money you already missed out on. Tell me something I don't know. Tell me where you see picture perfect opportunities ...