Every organization yearns to hear a positive report about its operations, employees and anything else that pertains to it. When a negative report is given out to the public, the organization always finds ways to clear the tainted image before it finds itself on the ground.
We short (misguided) innovation for a living, but shorting bitcoin or doubting cryptocurrencies is nutty. The mkt opportunity is massive https://t.co/Q4vsI9nuyf
— Sahm Adrangi (@SahmAdrangi) September 25, 2017
When shares of KODAKOne and KODAKCoin rose on concerted hype, Sahm Adrangi believed that they were flawed deep down and would never materially benefit the Kodak shareholders. The lead developer of KODAKOne and its strategic advisor on the KODAKCoin ICO, which was AppCoin Innovations Inc., were all companies that had wanting backgrounds.
Against all laws and regulation, the board of Kodak gave themselves restricted stock a night before announcing KODAKOne launch. This suspicious act bore material risk and consequently drew the investigation of SEC. Unfortunately, the partnership that was announced could not save the company from declining revenues and share prices.
The stock of Kodak had reached an impressive 187% after the announcement of a partnership that will enable them to launch a licensing platform. The platform was blockchain-enabled and had photo-centric cryptocurrency. Basically, the announcement was a cheap attempt that would run after the ICO craze. However, according to Sahm Adrangi, it did nothing to relieve the company’s poor fundamentals.
The last had not been said, Sahm Adrangi also gave a report to explain its short position in the St. Joe Company. The aforementioned company is a Real Estate Development Company. The company had hopes of transforming parcels of desolate land that is near Panama City Beach. The aim was to turn it into an attractive destination for the retirees and business community. As it came to realized the company in question was not likely to develop the land in a manner justifying its current valuation of $1 billion. The liquidity rules also posed a great challenge to the shareholders.
The drama then takes a sharp turn when it is revealed that Sahm Adrangi is the Chief Investor Officer of Kerrisdale Capital. Funny enough, the company had a short position in Eastman Kodak Company of which they stood to benefit if the share prices fall. To understand this further it is important to note that Kerrisdale Capital is an investment company which focuses on investments that bring long-term value as well as special situations that are event-driven. And what better events than the one that took place.