Time To Look At Eastman Kodak? (EK, AAPL, RIMM)

Shares of Eastman Kodak

sharply rallied in after-hours on Friday, gaining around 20% after a

agreed to review the company's claims that Research in Motion

and Apple

are infringing on some of the company's patents. If this is proven to be true, this could potentially be worth hundreds of millions of dollars, perhaps even $1 billion to Eastman Kodak is true. There appears to be a massive short squeeze in the stock, as there are not enough shares to cover. In a research note received by

Cross Research analyst Shannon Cross said the decision means the decision last week increases the chances of a settlement. "We note that the vast majority of Kodak's IP settlements have been one-time payments for perpetual licenses and therefore Kodak has little recurring IP royalty revenue," Cross wrote. "We are pleased with the decision, and we look forward to the next step in the process," a Kodak spokesman said. The company said that it expects $250-$350 million in intellectual property over the next few years, but those numbers do not include any potential settlements from Apple and RIMM. If the settlement does go Eastman Kodak's way, and there is a massive short squeeze, then perhaps traders would be wise to get in as early as possible into Eastman Kodak, to benefit from the massive short squeeze. A final decision is supposed to come by May 23.