Hedge fund manager Sahm Adrangi recently issued a negative report about Eastman Kodak Company’s recent moves. In the beginning of February they announced the would be releasing an image licensing platform that would be based on blockchain technology. They will also be releasing a companion cryptocurrency. Their stock zoomed up 187% after this announcement. Sahm Adrangi then released his report calling Eastman Kodak’s latest moves as ridiculous and nothing but a distraction from the company’s leaders. He also announced he had taken a short position on their stock, ticker KODK, which means his hedge fund will make money if Eastman Kodak’s share prices fall.
When releasing his negative report Sahm Adrangi also said he would reveal more during an open conference call others could listen in on. He and some of his team would go over the finer details of everything he saw wrong about Eastman Kodak’s announcement. In his negative report, though, he said that both of these new developments, KODAKOne and KODAKCoin were both very flawed products and shareholders in this company will never see any financial benefit derive from them. He said that Eastman Kodak’s shares went up based on unjustified hype and he expected their value would soon crater.
During the conference call Sahm Adrangi also revealed that the very day before Eastman Kodak had made this press release their board of directors had given themselves a large amount of restricted stock. He found this to be very suspicious and something that could be investigated by the Securities and Trade Commission. Additionally, he said that the firm Eastman Kodack had partnered with to release these products, WENN Digital Inc., has a very shady background and is very likely not looking out for the best interests of Eastman Kodak or its shareholders.
Sahm Adrangi is an entrepreneur who founded his hedge fund company, Kerrisdale Capital Management, LLC, in 2009. Overall he has 14 years of experience in the financial industry. He specializes in both value investments and short-term special situations. Sahm has a bachelor’s degree in economics which he earned in 2003 at Yale University.