Difference #1 between Kodak and PaperlinX

Posted 4 January 2012                                                              Twitter: @PaperlinXsux

What’s the difference between Kodak and PaperlinX?

I don’t expect the term “PaperlinX moment” will ever appear in the vernacular, but I’m sure the Board of PaperlinX wonder whether they’re experiencing their own Kodak moment right now – see here.

Kodak and PaperlinX are now both buggy-whips businesses for ostensibly different reasons; but the common and real reason is that of all business failures – poor management, as their respective markets changed dramatically over a relatively short time.

In the USA financial press, the Kodak eulogies are prepared ready to go, see ABC News here. Note the similar text-book sayings by managements of failing enterprises, and common stakeholder concerns.

Common to all failing companies, listed corporate debt is the canary in the coalmine. See here for how PaperlinX’s corporate debt is now acting like equity. Similarly, “Kodak’s Bonds Fading Fast” was reported by The Wall Street Journal in July 2011. see here. This is an uncannily similar time to PaperlinX’s hybrid debt’s final fall from grace in May 2011.

Kodak is fast losing directors, “Kodak loses third board member in 2 weeks” published December 2011, see here. We’re not suggesting last years long overdue board cleanout at PaperlinX was anything like this; however watch carefully for defections from this Board. 

Because of his skill set, the appointment of Tony Clarke was welcome. Apparently it’s his first ASX board gig – good luck. Lyndsey Cattermole and Mike McConnell, each with a string of plum appointments to their credit, must now ponder the wisdom of their decisions to again join Harry Boon at the board table.

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