Kodak The First Company to Use Real Paint (NYSE: EK)

NEW YORK - The iconic camera maker will report its fiscal Q4 tomorrow. The stock dropped nearly 13% or $100 million as Kodak lost the initial battle in a patent claim against Apple and Research in Motion. The drop is especially puzzling because if the stock drops 13% over one issue, then what are investors value the stock on.

Eastman Kodak a former Wall Street titan will need a viable business to survive and its hard to believe 13% of the stock was valued on an one time infusion of cash. The second reason it is hard to believe is that Kodak has a remarkably strong financial position given its string of operating losses. The company with its improved cash generation can likely last until 2013 without showing a profit.

Tomorrow, Paul Ford the senior writer for the Markets Are Open is expecting Kodak to report a profit of $80 million or 30 cents a share. As the struggling company appears to finally turn the corner.