Sell Kodak now, Bill Miller

Aaron Pressman

The trouble with buying beaten down stocks, as value investors like Legg Mason's Bill Miller are apt to do, is that sometimes they don't come back up. I recall in college thinking that Smith Corona's plunge was overdone on the whole computer word processing fad. Oops. Bill's had nothing but trouble with Eastman Kodak (EK), the endlessly restructuring film company he bought starting in 2000 when the shares were north of $50. Kodak’s been gyrating between the low $20s and mid $30s for more than four years now. After photogs shifting from old school snappers to gee-whiz models have crushed Kodak’s sales and margins, now comes word that Hewlett-Packard (HPQ) is jumping into the photo kiosk business. Bill Miller - it's time to sell.

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