Sahm Adrangi is the Chief Executive Officer of Kerrisdale Capital. In a surprising turn of events, the CEO has issued a negative report relating to the prospects and performance of Eastman Kodak Company. Adrangi says that KodakOne and KodakCoin are smokescreens that will be blown away soon. The Kerrisdale executive does not mince his words relating to the developments in which Eastman Kodak has seen its shares rise by over 187%. Adrangi cautions that the spike in the shares owned by Kodak is not based on facts but mere hype. Mr. Sahm Adrangi, further, observes that Kerrisdale holds a short position in the company and is set to gain; if Kodak fails as it is expected in the near future.
The Negative Report
The Kerrisdale Capital CEO says that Kerrisdale Capital is sure of smiling its way to the bank owing to the mistakes that EKC has made. In a report issued vial CNBC, the CEO points out that the recent rise of EKC shares are baseless, and termed them as hot air. EKC offers printing and imaging services to commercial clients across the globe. Prior to the rise in share prices, Eastman Kodak had announced a partnership in which it was seeking to launch an image licensing cryptocurrency platform powered by blockchain technology. In the CNB report, the Kerrisdale official says that the whole venture is not but smoke and mirrors.
How Eastman Kodak Will Be Affected
According to the CEO of Kerrisdale Capital, Sahm Adrangi, and the company in general, the concept that Kodak was selling regarding KodakOne and KodakCoin was a hoax, and that the two entities were unlikely to give Kodak customers a return for their investments. Pundits say that if the prediction by the Kerrisdale team does come to fruition, Kodak will be subjected to a rude shock for its business. Mr. Sahm Adrangi clarifies that since his company holds a short position, they stand to gain from the backlash and failure by Kodak to deliver on its promised business ventures.
Kerrisdale Capital is a private equity services provider and an asset and investment manager in the USA. Kodak announced that it was launching a blockchain enabled licensing platform and a cryptocurrency. Kerrisdale says it does not believe, even for a second, what EKC are saying. Kerrisdale Capital specializes in long-term investments and an opportunistic venture at situations that are catalyzed by certain events. Although Kerrisdale has nothing to lose, it highlights that the practice demonstrated by the senior management at EKC is worth investigation by the SEC.