Sahm Adrangi is a financial guru who has acquired a lot of knowledge on matters concerning stocks; he currently serves at Kerrisdale. He has been involved in all aspects of the firm development since it was launched.He is best known for short selling and publishing research.
His research is mainly based on correcting the myths and the misconceptions that the third party have about the company. He mainly shares his research on the websites where the investors can easily access them and on such social media such as Twitter.
In his research, Sahm Adrangi also focuses on various sectors of the firm regarding resource and capital allocation, effective and efficient management of the company’s resources to enhance the continued positive growth of the company and increase the economies of scale.
He believes that KODAKOne is continuously experiencing diseconomies of scale which provides evidence that it may not be able to offer any benefits to the owners of the company or even Kodak main shareholders. Sahm Adrangi is highly interested in long-term investments. There are various reasons as to why Sahm Adrangi believes that Kerrisdale will continue making low profits or declining revenues.
One of the reasons is that KODAKone seems to have poor management. It is led by WENN Inc which Sahm believes has previously portrayed a poor track record. Poor management leads to misappropriation of funds, poor utilization of available resources, poor planning, poor management of credit facilities which can lead to bankruptcy or lead to low-profit making or even losses.
Another reason is that members of the board of directors with Kodak gave themselves some constant stock from KODACOne before it was launched which is so illegal.
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
Thirdly, even though Kodak has some partnerships, this will not reduce the rate at which they experience negative cash flows because they have made several fruitless attempts to improve the unsustainable capital structure.
KODAKone is led by WENN Digital Inc and other innovations. The companies have backgrounds with high uncertainties. In most cases, the success of any given business highly depends on its environment like the potential investors, lenders, and other financial institutions will need the background information of that company before getting into any commercial or any other business transaction.