Sahm Adrangi of Kerrisdale Capital Management issued a statement explaining why he was taking a short position on the stock of Eastman Kodak Company in his hedge fund. Recently Kodak had announced that they were going to release an online photo platform they called KODAKOne. They are also doing an initial coin offering tied to KODAKOne called KODAKCoin. Not one to mince words, Sahm Adrangi said that KODAKOne and KODAKCoin are critically flawed and foolish endeavors that will never deliver one iota of value to investors. He sees their stock collapsing as more investors see this for themselves, thus his short of the Kodak stock. Read more at Endpoints News about Sahm Adrangi.
As a professional investor who does his research, Sahm Adrangi says that the new partners of Kodak come from very dubious backgrounds. WENN Digital Inc., which serves as Kodak’s lead developer and strategic advisor, have very poor reputations. Another thing that alarmed Sahm Adrangi was that just the day before this announcement the board of directors at Kodak granted themselves restricted stock. He thinks the SEC should investigate them because that sounds very much like insider trading.
Sahm Adrangi added that Kodak has been on a slide for years as they become increasingly irrelevant. The company has had declining revenue for a long time coupled with negative cash flow. He also points to their risk of defaulting on their debt due to these issues. He sees these new developments at Kodak to be little more than trying to throw up a smoke screen to hide the very real problems at the core of this company.
After Sahm Adrangi announced his short position he held a conference call that any investor could listen to by dialing the phone number of his company. He explained his position during this conference call and outlined all of the issues that Kodak is presently facing.
Kerrisdale Capital Management, LLC, is a New York-based investment firm that Sahm Adrangi founded about 10 years ago. He often shorts the stock of companies but he also invests his hedge fund in what he sees are long-term value investments. He also specializes in event-driven special situations, such as Kodak’s latest endeavor. Read more at nymag.com about Sahm Adrangi.