While most people think of investments as betting for a company’s success, Sahm Adrangi and Kerrisdale Capital have issued a short position on the stocks of the Kodak Company. This report has gained the attention of many individuals organizations including CNBC. With Sahm Adrangi shorting Eastman Kodak, he and his company are set to make a good profit if Kodak fails.
Sahm Adrangi has been known for years with his accurate predictions of the failures of companies and he doesn’t appear to have lost his touch. He is not afraid to say what everyone else doesn’t want to say, no matter if it is to his business peers or social media. This does not bode well for Kodak as Sahm Adrangi believes their latest efforts are just an attempt to shovel a little bit of water from a sinking ship.
— Ozraeli Dave (@Israellycool) May 18, 2018
Kodak recently announced new systems that are centered around cryptocurrency and blockchain technology, things that Sahm Adrangi thinks just don’t make any sense for the photography industry. While their new KodakOne and KodakCoin projects may look good to the casual observer or the photographer, but Sahm Adrangi believes they are essentially doomed and Kodak is headed towards inevitable bankruptcy.
While the stock of Kodak did see a significant increase in stock prices directly following their announcement, Kerrisdale Capital does not see these stock prices having any longevity for the company.
There are even people within Kodak that have gone public with their opinion that these new products just won’t work. It is believed by many that blockchain technology will do little to nothing to protect the assets of photographers. To make it even worse, one of the main people that Kodak hired to assist with the development of these products is business partners with someone who has been convicted of security fraud. There are internal problems in Kodak as well as 5 members of their board have been found to be partaking in unscrupulous trading that some believe will lead to an eventual investigation from the SEC.
All in all, none of this looks good for the Eastman Kodak Company, but it looks great for Kerrisdale Capital and their investors.