Sahm Adrangi: Investments Researcher Levels Accusations against KodakMarch 5, 2018 - Author: steph
Eastman Kodak Company, a commercial imaging, and printing business announced the launch of a photo-centric cryptocurrency and blockchain-enabled image licensing partnership. Following this announcement, Kodak’s stock increased by 187%. Kerrisdale Capital Management, a private investment research company founded by Sahm Adrangi, believes it is a scam.
Kerrisdale Capital has published a complete report explaining the short position of Kodak. This report suggests Kodak’s announcement is an attempt to benefit from the ICO craze. Since, Kodak’s capital structure remains unsustainable to date, owing to its poor fundamentals. Visit Crunchbase to know more about Sahm Adrangi.
Kerrisdale provides numerous reasons for believing this equity is worthless. Firstly, Kodak board members granted themselves shares a day before this announcement was made. Secondly, PR management was handed over to a stock promoter with a dubious past. Thirdly, the group posing as blockchain-enabled image platform managers is, in reality, a German copyright trolls group.
Cryptocurrencies and Blockchain technology are exciting aspects with potential for disrupting numerous industries. However, introducing blockchain to media rights licensing will have no great impact, other than an imminent wipe-out of Kodak. Using blockchain for operating a copyright platform for images accomplishes nothing. Furthermore, Sahm Adrangi revealed Kodak’s financial situation involving tightening liquidity, restrictive debt covenants, and significant debt maturities, therefore, establishing its finances to be in a state of free fall.
Kerrisdale’s primary objective is to clear misconceptions about overhyped shorts, under-followed longs, and fundamental investment prospects. Since its establishment in 2009, Sahm Adrangi, also Chief Investment Officer of Kerrisdale has been involved in researching businesses for investment opportunities.
Adrangi initially gained popularity by revealing the truth about fraudulent Chinese companies. Some popular companies he exposed in 2010 and 2011 were Lihua International, China-Biotics, and China Marine Food Group. During this period, several other companies targeted by Adrangi were subjected to regulations set by Securities and Exchange Commission.
Prior to founding his company, Sahm Adrangi was employed at several reputable firms. After specializing in Economics from Yale University, he began working at Deutsche Bank under leveraged finance section. He assisted in structuring non-investment grade bank debts, debt refinancing, exit financing, high yield bond and leveraged buyout financing.
Later, Adrangi worked in bankruptcy restructuring at Chanin Capital Partners. Here he offered advice to creditors regarding out-of-court restructuring for bankruptcy. Moreover, he gained experience by representing debt holders, bondholder committees, creditors of bankrupt or distressed companies and other equity committees. Lastly, before launching Kerrisdale, he worked as an Investment Analyst at Longacre Fund Management LLC. Follow Sahm Adrangi on Twitter.
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