Eastman Kodak misses in Q2 -- surprised?

Kodak is just not in a good place. In terms of comparisons, last year at this time, the company had positive income instead of a loss. Cash flow is terrible. And there's no chance one can come away, after reading through the report, with a feeling that management has figured out a proper paradigm for getting the stock moving again. I have to wonder how many investors out there have stubbornly held on to their shares, praying that Kodak will someday come back.

That's looking more and more doubtful. Kodak, whose colleagues include Sony (NYSE: SNE) and Canon (NYSE: CAJ), is still struggling to adjust to the new world of digital photography. Unfortunately, the company seems to be so focused on defending its cash flow and implementing restructuring initiatives that I get the sense that innovation is not a process it can adequately engage and address. Kodak just isn't the force it was in the past. Heck, management even had to pull the plug on the iconic Kodachrome product.

I'll stick to the opinion I expressed back in the first quarter: I am not a buyer of Kodak. I'm not sure I'll ever be a buyer of Kodak. When it comes to business models that should scare an investor away, you can put Kodak at the top of the list.

Disclosure: I don't own any company mentioned; positions can change without notice.