The problem is with the current competitive climate. Everything is digital. Kodak used to be an expert on traditional photography, the kind based on film which that needed to be developed in a dark room. Obviously, Kodak has made strides in engaging that market. Apparently, though, this former icon still has a long distance to travel on the road back to relevancy: revenues from the segment dedicated to digital businesses plunged 26% in Q3.

Financially, Kodak is a mess. When you look at cash flow and the gross margin, you don't feel any sense of confidence. Management mentions the impact of the economy and currency effects, but personally, I'm going to dismiss these factors. Sure, they are wreaking some havoc, but Kodak's problems go way beyond the GDP cycle. This is an equity that closed yesterday at $3.47 per share. When you're locked in the terrifying dungeon dedicated to public companies sporting single-digit prices below $5 per share, you know that something must be terribly wrong.

And notice that Kodak hasn't rallied back like many other stocks have since the bullish sentiment returned to the markets. That's got to be a telling sign, too.

I've been pretty consistent on Kodak, but I don't believe a bearish position on the company is unique in any way. Basically, a contrarian investor would want to figure out exactly how Kodak can regain even a small part of its former glory to justify a speculative position. It's difficult to imagine the future, so I won't say that a contrarian bet is doomed to failure with absolute certainty. I will say, however, that a bet on this stock would be ill advised given the quality that can be found in other investments. Why risk your money on Kodak? This is probably one of the most difficult questions to answer, and it probably should simply confine itself to the rhetorical side of things.

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