New York-based investment firm Kerrisdale Capital has issued a report regarding its short positiin on Eastman Kodak Company, trading as KODK. The venerable printing and imaging company has seen its stock price jump up 187% since the announcement of its cryptocurrency and blockchain imaging platforms, called KodakCoin and KodakOne respectively. Kerrisdale and Chief Investment Officer, Sahm Adrangi, posit that blockchain technology is unsuited to protecting image copyright, rendering Kodak’s new platforms little more than stunts designed to attract investors in the wake of high levels of public interest in blockchain. Kerrisdale points out that the founder and chairman of an important firm behind KodakCoin was previously barred from participating in a Canadian stock exchange as a stock promoter. The report also draws attention to the lack of experience or recognition that KODAKOne’s executive team possesses within the blockchain development community.
Perhaps most damning in the report was Sahm Adrangi’s finding that following the announcement of the new platforms, five Kodak board members granted themselves nearly 400,000 shares of stock, a trade that may put the company and its board in the crosshairs of the Securities Exchange Commission. The probability of a federal investigation may render KodakCoin and KodakOne untenable in the long run. By taking a short position on Kodak, Kerrisdale is predicting an eventual precipitous drop in stock price, and stands to financially profit if that drop indeed happens.
Founded in 2009 by Sahm Adrangi with less than $1 million, Kerrisdale Capital Management has established itself in the investment market as a leading research-based firm, now managing assets in excess of $150 million. In that time, Kerrisdale has become a respected voice regarding the biotechnology and telecommunications industries, having published reports on companies such as Unilife, Sage Therapeutics, Dish Network and GlobalStar.
Between 2010 and 2011, Sahm Adrangi became a noted figure in investment circles for shorting fraudulent companies based in China such as Lihua International and china Marine Food Group, amongst others. Prior to launching Kerrisdale, Adrangi worked at Deutsche Bank, Chanin Capital Partners and Longacre Management. He holds a Bachelor’s in Economics from Yale University.