Sahm Adrangi is a 33-year-old chief investment officer in New York City. He owns and operates Kerrisdale Capital Management which is a hedge fund company. He says his personal investing style is value although he also does special situations investments as well. Most of his investments are in long-term value companies around the world. His hedge fund currently has $300 million in assets under management and he started his company in 2009.
One special situation he recently issued a very negative report about was Eastman Kodak Company’s announcement that they were entering the world of blockchain and digital currencies. There was a big hoopla on this announcement and their stock quadrupled in value. Sahm Adrangi looked into what they were up to and saw that it was all just a bunch of smoke and mirrors. He decided to short this company’s stock, which means his hedge fund makes money if their share prices go down, and then issued his report on such financial websites as CNBC.
Eastman Kodak Company formed a partnership with a tech firm called WENN Digital Inc. Their plan is to release a website which contains copyrighted pictures called KODAKOne. People can buy photos from this website by using their new cryptocurrency called KODAKCoin. The idea is that people will buy copyrighted photos from this website and the photographer will be paid with KODAKCoin.
As Sahm Adrangi explains, this whole notion is utterly ridiculous. First, no photographer in their right mind is going to want to get paid with KODAKCoin. It’s backed by nothing and its value will be as volatile as all the other cryptocurrencies. Two, WENN Digital is a very sketchy company he says which has done questionable things in the past.
Sahm Adrangi says this move really only serves two purposes. One, it diverts attention away from the sad state of affairs that their declining revenues have caused, including a chance Eastman Kodak will default on its debt. Two, they just want to jump on the latest buzzwords and initial coin offering craze. Sahm says that this whole things isn’t going to return a penny into the pockets of this company’s investors.