At 33 years old, Sahm Adrangi is a hedge-fund manager associated with Kerrisdale Capital Management. His curiosity and study of markets are unequaled. His ability to call out the sin when he sees them is just another admirable quality.
Recently, Sam Adrangi, the bachelors of Arts in Economics graduate from the Yale University called out red flags in the company Kodak. His rich work background with some top companies like Longacre Fund, Chanin Capital Partners, and Deutsche Bank place him in a uniquely qualified position to critic markets and point out what is the mess or a mess waiting to happen.
In the negative report on the company, Kodak for their products KodakOne and KodakCoin the hedge fund manager question the sustainability. Investments are as good as they will be in the long term. Otherwise, investors risk losing a whole lot money due to poor investments.
Followup to my last tweet —
— Sahm Adrangi (@SahmAdrangi) May 16, 2018
Sahm Adrangi argues that the rise in share prices for the KodakOne and the KodakCoin is unjustified. The Chief Investment officer at the Kerrisdale Capital feels that the company has unnecessarily hyped the shares and the shareholders stand a significant loss in the end.
Moreover, the company involved with the development of the two products has a poor background. WENN Digital and AppCoin Innovations who serve as the lead developer and strategic partners have a history that is shady at best. Partnerships can be used to determine how serious a company is with its investment. Partners should have a credible background to give the shareholders hope with their investment. For Sahm Adrangi, this is a huge red flag.
Furthermore, before the announcement of KodakOne staff, members of the Kodak board rewarded themselves restricted stocks. The act which is highly suspicious is another essential red flag. Reading between the lines, any investors should know that the board is more concerned with protecting their interest and not their interest. Therefore, it’s clear that they are aware it is a bad deal, but as long as they are protected, they are okay.
Also important to note, the company has been declining over the years. Sahm Adrangi observes this with curiosity. He argues that the partnerships announced by the company do not deal with the issues they face financially. It is also unclear how the problem of declining stocks will be handled. The report is out there and its now up to the investor.