In an effort to increase its revenues and increase its relevance in today’s market, Kodak announced its creation of KODAKCoin and KODAKOne. These are the new business channels Kodak will use to launch into the cryptocurrency market and use blockchain technology for securing copyright protection for images. Although coin offerings have spurred growth in many businesses, Sahm Adrangi doesn’t feel that this action will give Kodak stockholders any benefit nor does he feel that it will increase Kodak’s value, he also feels that Kodak’s current cash structure and ineffective leadership will doom any investments Kodak makes in the with this strategy.
We short (misguided) innovation for a living, but shorting bitcoin or doubting cryptocurrencies is nutty. The mkt opportunity is massive https://t.co/Q4vsI9nuyf
— Sahm Adrangi (@SahmAdrangi) September 25, 2017
Sahm Adrangi formed his “Negative Report” through in-depth research into Kodak’s financial packages and SEC filings. Referencing Kodak’s declining profits and its general lack of business fundamentals and leadership he believes that there won’t be enough revenue generated from its blockchain ventures to offset a history of poor performance. Sahm Adrangi is also concerned with the actions of the Kodak board of directors which granted its members restricted stock the day before it made the KODAKOne announcement. Sahm Adrangi feels that the Kodak board risks SEC investigations and feels its executives and board members have not acted in the best interests of the stockholders and feels this lack of judgment will be detrimental to Kodak’s hope for future growth.
Sahm Adrangi has provided the information about Kodak through one of his “Negative Reports” which he publishes regularly about stock opportunities that don’t line up. An experienced investment manager, he created Kerrisdale Capital Management LLC to share his investment advice and focus on long-term investment growth. Currently managing a fund of more than $300 million, Sahm Adrangi keeps abreast of current market news and issues his “Negative Reports” whenever he encounters irregularities and unsubstantiated claims. With his years of experience and deep analytics, he is able to maintain a stable investment fund and provide his clients with increased gains.