Sahm Adrangi is Kerrisdale Capital’s chief investor officer. It is his responsibility to determine the value of a stock before advising his clients to buy. Upon evaluating Kodak and KodayOne’s stock, he concluded Kodak’s shares have risen in value not based on increased worth, but rather advertising. Hype is driving Kodak’s share price upward.
Kerrisdale Capital is a private investment company managed by Sahm Adrangi. Their recent report stated that Kodak’s launch of KodakOne is an empty attempt to jump on the Initial Coin Offerings (ICO) bandwagon. KodakOne and KodakCoin cryptocurrency is Kodak’s partnerships in releasing block-chain-enabled image licensing platforms and photo-centric cryptocurrency.
KodakOne is a block-chain service that serves as an image rights platform and a digital ledger. Photographers can join this new economy and exhibit both their new and past photos. From this platform, photographers can license their work for bitcoin. The selling point is that photographers can receive payment immediately.
KodakOne was scheduled to launch on January 31, 2018. Kodak delayed the ICO at the last minute. Before that announcement Kodak’s stock had risen 100%. After the delay, it dropped 15%. Kodak claims the delay is due to them deciding to follow SEC regulations as ICO’s will probably be regulated by the SEC in the very near future. Kodak decided to make sure their potential investors in KodakOne were accredited.
Based on the controversy, Sahm Adrangi is paying close attention to all of the faults in Kodak’s plan. Kerrisdale Capital has taken the short position and will profit when Kodak’s stock price falls. It made its first small profit this January/February when the stock fell 15% after the ICO delay.
Kerrisdale Capital prefers to hold in their portfolio long-term investments with promising growth potential. Kerrisdale also likes to look at event-driven special situations to find investment opportunities. So far, KodakOne falls short of any of the valuable traits that Kerrisdale Capital, led by Sahm Adrangi considers to be markers of a successful investment opportunity.