Sahm Adrangi is the chief investment officer of a private investment firm, Kerrisdale Capital Management, LLC. He recently revealed that after Eastman Kodak Company announced their move into cryptocurrency he had taken a short position on this company.
Eastman Kodak Company is a business that provides commercial printing services as well as imaging solutions. They recently announced that they were going to release a new digital platform that they had developed along with a partner. This digital platform will be based on blockchain technology, the programming that is used by cryptocurrencies such as bitcoin and Etherium. Blockchain will be used to create an image licensing platform which will hold copyrighted images. They are also releasing a new cryptocurrency that is photo-centric in nature and will be how these copyrighted images are paid for.
Sahm Adrangi called this whole development a smokescreen and sheer nonsense. He said that Eastman Kodak is just chasing the latest craze which is initial coin offerings, new made-up currencies that have absolutely nothing backing their value. He said that Eastman Kodak was just creating another cryptocurrency among a sea of these imaginary currencies. Refer to This Article for more information.
Furthering his point about Eastman Kodak, Sahm Adrangi said that for the last decade they have been in a steady decline and were now flailing about to change their fortunes. He said that this company has very poor fundamentals. He also made comments about their capital structure which he said was unstable in nature.
On February 7th, Sahm Adrangi and his team at Kerrisdale Capital Management held a conference call so that they could discuss their views on Eastman Kodak with other financial experts. The call was held at 10:30 am Eastern Time and was reached by people calling the Kerrisdale Capital Management phone number.
When Sahm Adrangi founded Kerrisdale he had two focuses for what his company would invest in. The first was on firms that feature long-term value. The second was on event-driven special situations, such as what Eastman Kodak is going through right now.