Cramer’s Comeback Kids: Eastman Kodak

Eastman Kodak has gone from a classic business to a revolutionary one, and that’s why this stock is finally ready to turn up.

At least that’s what Cramer said. He’s bullish on the once-failing company’s push into the digital space and, more importantly, high-quality inkjet printers. Ever since Antonio Perez – he used to run Hewlett-Packard’s inkjet division – took the helm in 2003, the CEO’s strategies in these two areas have been paying off.

One in particular is the reason Cramer is so excited about this stock. Normally, printer makers sell their wares on the cheap with the intention of charging exorbitant prices for the accompanying ink. That’s how they make their money. But Perez and Eastman Kodak have turned this model on its head. Thanks to a newly improved balance sheet, EK is able to sell its printers and the ink for less than the competition as a way to attract and retain customers.

The results are apparent, too, as Kodak reported a fabulous beat Nov. 1. The Street was expecting 27 cents a share and EK gave it 46 cents. Not bad for a company that’s only a couple of points above its 52-week low. The only similarity between the old failing Kodak and the new outperforming one is the strength of the brand, and Cramer thinks it’s about time this company got some respect.

Jim's charitable trust owns Hewlett-Packard.

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