Sahm Adrangi: The Report on Kodak
Sahm Adrangi is the Chief Investor Officer for Kerrisdale Capital. CNBC published his article February 7th of this year which came out to be a negative report regarding Eastman Kodak. The report title Gone in a Flash, shows Kerrisdale Capital did focus on the company’s push to use cryptocurrencies and blockchain. In one statement it said that it was a PR stunt and a simple distraction that will go away once we see the earnings and investors are reminded of a very distressed financial situation. Sahm Adrangi reports says Kodak on the other hand, known as a imaging and commercial printing company, announced a partnership that allows them to move ahead with image licensing through the use a blockchain. This technology is expected to give them a stock rise of nearly 187 percent.
Sahm Adrangi, made it known in the report that they were skeptical of the concept stating that using cryptographics to imprint an image into a blockchain is far from intellectual property provenance. To be clear, the report claims that blockchain will reduce resources pertaining to copyright enforcement. Photographers will likely not be in line to receive payment in Kodak coins rather than actual money. He was also noted in the Kerrisdale Capital report that the company is far from having the luxury of hoping for success regarding blockchain projects. The document went on to report that the business is looking at a possible default and restructuring of debt in the coming months.
Sahm Adrangi has considered Kodak to be jumping into the blockchain hype and cryptocurrency as they have rather suspicious financial dealings from a few Kodak board members. The report that was written on January 8th 2018, specifically targeted this day because it was before Kodak made it known of its involvement regarding a Major Blockchain Initiative in Cryptocurrency. At this time, there were 5 board members restricted stock of 370,974. Kerrisdale Capital heard from a former SEC enforcement division lawyer who stated that if he was pondering on buying the company stock he be worried about an SEC investigation brewing that would ultimately decrease its value. He further stated that is a fair concern for Kodak or anyone in the process of considering joining the organization as an investor.