Sahm Adrangi, Founder and CIO of Kerrisdale Capital has issued a negative report explaining why they are shorting their position on Eastman Kodak following their launch of KodakCoin. KodakCoin is a cryptocurrency which Kodak says is “a photo-centric cryptocurrency to empower photographers and agencies to take greater control in image rights management.” The company hopes that this will be the future from their old days of camera technology. The company however is facing backlash from this financial decision. View Sahm Adrangi at hvst.com.
The report explains “The use of blockchain in operating an image copyright platform accomplishes nothing. KODAKOne intends to utilize smart contracts and a crypto-asset to solve the problem of copyright infringement, but the business idea is flat-out silly.” Sahm Adrangi elaborates that the Fund’s positioning on the company is also due to the companies lack of experience in the financial field as well as saying the concept is “a last-ditch stock promotion gambit for a company hurtling towards bankruptcy.” The report elaborates on the company having zero experience as well as having their ICO venture being led by Cameron Chell. A stock promoter with a history of “being banned from a Canadian exchange for the improper sale of securities, being a known associate and business partner of a convicted perpetrator of securities fraud which resulted in the indictment of 58 people being forced to step down as CEO of the tech incubator he founded, only to be replaced by someone arrested 5 months later for running a boiler room telemarketing scam, and having a second board member at his tech company sued for pumping and dumping penny stocks before eventually serving jail time for impeding the IRS.” Sahm Adrangi also explained how the companies history with crypto is shady as well, including deceptive marketing at CES with a bitcoin mining rig with fixed payouts. More details on Sahm Adrangi at valuewalk.com.
Sahm Adrangi first made a name for himself shorting and exposing fraudulent Chinese companies, including China Marine Food Group, China-Biotics, Lihua International and many others in 2010 and 2011. He has been a speaker at numerous confrences as well as appeared on CNBC, WSJ, and Bloomberg.