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Tuesday, October 28, 2003
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Watch for the new impact of Institutional Investor shareholders as they band together and pressure companies.
Kodak has been struggling and searching for a new direction as we picture takers turn from film cameras to digital cameras. Obviously, a group of its institutional owners have decided they should help Kodak determine its course. The following is a quote from Kodak's Critical Moment by Rex Moore:
But another in a long line of disappointing quarters is only part of the news. Today, a group of disgruntled shareholders is meeting in New York to discuss ways to nudge Kodak away from its plan to realign the company around digital technology. The group, led by the Providence Capital investment firm, reportedly is comprised of about 60 institutional investors owning 25% of the stock.
That makes me very uneasy as an individual shareholder of common stocks. Institutional money managers (mutual fund managers, pension fund managers) tend to be fickle shareholders and care only for short-term gains. Believe me, there is no such thing as brand loyalty with them. I question their judgement about what a company should/should not do.
10:12:23 PM 
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© Copyright 2003 Nancy B. King.
Last update: 11/2/03; 12:06:46 PM.
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