Cryptocurrency is the hot thing at the moment, but Eastman Kodak Company’s entry into the arena is leaving Sahm Adrangi’s Kerrisdale Capital cold. The private investment manager published a negative report at the beginning of February that explained its short position in the 130-year old commercial printing and imaging company.
Since Sahm Adrangi founded Kerrisdale Capital in 2009, launching it with less than $1 millin, the private investment manager has built up a solid reputation in the world of investing. With
Sahm Adrangi at the helm as CEO, it has become known for its focus on long-term value investments as well as event-driven special situations.
In the case of Kodak, Sahm Adrangi’s understanding of the world of investing have caused Kerrisdale to take a negative position. At the beginning of 2018, Kodak announced a partnership to launch KODAKOne (an image rights management platform) and KODAKCoin (a photo-centric cryptocurrency). These announcements had sent the company’s stock soaring by 187%; however, they left Kerrisdale Capital unimpressed.
On February 7 at 10:30 a.m. ET, Kerrisdale Capital held a conference call to explain its short position in Kodak. Interested parties could dial in to the designated number at the appointed time and date to learn more.
Kerrisdale’s position, driven by Sahm Adrangi‘s expertise and research, is based in its lack of faith in the basics of Kodak. It does not believe that the company, which is probably best known to many as a camera company, has a sustainable structure nor strong fundamentals. The announcements of KODAKOne and KODAKCoin, Kerrisdale believes, are just an attempt on Kodak’s part to hop onto the cryptocurrency craze and do nothing to address the more foundational issues facing the company. Find Related Information Here.
Where are things headed with Kodak? Not only have the cryptocurrency-related announcements left Sahm Adrangi and Kerrisdale cold for the short term, but the more fundamental issues facing the company have the private investment manager saying that it believes Kodak is headed for bankruptcy.