At Raine Radar, we provide analyst coverage of the Print Media 42© (i.e. 42 publicly traded companies in seven industry segments that revolve around print media, content and data management). Kodak is one of those companies we have been tracking for over two years and the recent news of Kodak's strategy shift is nothing less than jaw-dropping. Even the Wall Street Journal has made Kodak the headline story for two days in a row. The confusion around this dramatic change of heart has been difficult even for the Kodak executives to explain to their analysts and shareholders.

In October 2003, when Kodak first announced their new business direction away from the traditional film business, a group of restive shareholders made headlines to upend Kodak's plans to spend $3 billion on digital print acquisitions and slashing its dividend to shareholders. Investors were surprised by the radical plan and trampled Kodak stock with shares down 14% to $23.12 since the announcement, hitting15-year lows.

Now just three months later, the saga continues. On January 22nd 2004, Raine attended Kodak's 2.5 hour web conference for the fourth quarter earnings call. (See Raine Radar Report for full coverage of the call highlights). Kodak executives took this opportunity to give a detailed PowerPoint presentation to help shareholders understand better the logic behind their future strategy and investment decisions. Detailed examples of variable data printing, print on demand, and transaction printing opportunities were presented to the analysts. The market research presented by Kodak showed an addressable target market for Kodak of $17 billion in 2003 and will grow to $23 billion by 2008. Bottom line, we, and everyone else we have talked to, are still confused how Kodak plans to gain share in commercial printing.