Sahm Adrangi Talks About the Big Picture of Kodak
Sahm Adrangi is an expert when it comes to predicting a company’s failure. This is why so many investors have listened to his warnings that the KodakOne and KodakCoin systems have fundamental problems that will not allow them to achieve success. While Kodak’s shares have risen dramatically since the announcement of KodakOne and KodakCoin, Sahm Adrangi believes the hype is unjustified and many investors will lose money.
The lead developing team behind KodakOne is Wenn Digital Inc. while Appcoin is acting as the strategic advisor for the KodakCoin project. Both of these companies have rather dubious reputations when it comes to their practices and this leads Sahm Adrangi to be concerned about the well being of the investors’ money. One of the acts that led to Sahm Adrangi’s suspicions is the looming possibility of an SEC Investigation towards Kodak after the board of directors for the company allowed themselves to purchase restricted stock just one day before Kodak made their announcement of KodakOne. He does not see the partnerships that Kodak announced will keep the company from experiencing declining revenues and the risk of default.
Sahm Adrangi’s Kerrisdale Capital went on record with a negative report on the company earlier this year. It was coupled with an explanation as to why the Kerrisdale Capital has chosen to short the stocks of the company Eastman Kodak Company. This came after Kodak’s announcement that they were releasing KodakOne and KodakCoin which are an image-licensing platform that is enabled with blockchain technology as well their own cryptocurrency. To Sahm Adrangi, these projects are just Kodak’s way to capitalize off of the popularity of ICOs. These attempts will not work to save Kodak’s bottom line in the long run, Sahm Adrangi believes the company is built on a capital structure that is not sustainable. By shorting the Kodak Stock, Kerrisdale Capital and their clients stand to make a lot of money if the prices of the shares fall as Kerrisdale predicts they will.