Kodak is in the GICS sector 25, which is consumer discretionary, and "the consumer discretionary spending sector involves some interesting stock groups, and brand names and, in my view, some of the best opportunities to grow your personal wealth. This is a sector that most people can relate to." You can read that in the top banner ‘edu' section.

Kodak also happens to be categorized as 2520, which is the Leisure Equipment & Products Industry. It's 4th level categorization is 25202020 -- Photographic Products: Manufacturers of photographic equipment and related products.

Today Kodak announced the completion of a $3.7 billion acquisition plan to move the company from analog to digital. It agreed to pay $1.2 billion for Creo Inc (TSE: CRE), the world-leading Vancouver B.C.-based manufacturer of digital printing software.

Since announcing this strategy in September 2003, Kodak has moved from number five in digital cameras to number two, behind leader Sony (NYSE: SNE).

In addition to cameras, Kodak is also in the business of medical imaging and commercial printing, and for sure the Creo acquisitions puts Kodak directly in the path of competitor Xerox. Commercial printing replaces the continuous income stream that the company formerly had with analog film processing.

Analysts in the know say that the Creo acquisition is an outstanding accomplishment for Kodak " pricey, yet clean in its balance sheet and essential to the big picture for this company.

So, without getting into the details here, chalk up Kodak as a new growth company. Creo will add $0.05 eps and $700 million top line revenue after the take-over.

I like it. This is the kind of manufacturing company America needs.

Strategy: Write long puts and buy calls.

If I buy the July 35.00 calls (EKGG.X) at $1.50 and sell the July 32.50 puts (EKSZ.X) at $1.90, I expect to have the stock put to me at $32.50 and I also expect to gain from the upside on the stock.

BCara@BillCara.com