Tag Archives: Sahm Adrangi

GreenSky creates first retail bridge loan

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In 2005, David Zalik was working as a consultant to some of the biggest home improvement companies in America. The entrepreneur had already found success running, first, his own computer company and then going into real estate and founding an e-consultancy called OutWeb. This firm allowed Zalik an up-close view of the way some of the largest home improvement companies made their money. He quickly noticed a serious leak in their business model, one that was costing them billions of dollars per year in the aggregate.

Bridge loans for consumers

What Zalik saw was that there were a large number of high-end homeowners who were seeking to do home improvement projects. Some of this business was coming directly into the home improvement stores when the homeowners were trying to act as their own general contractors. But most of this business was essentially hidden; it was secondary business that was happening when home improvement contractors would come into the construction supply stores to buy all the things they needed to complete their projects. This is one reason that Zalik was one of the first people to catch this huge problem.

Zalik saw that these homeowners, who rarely had anything resembling real contracting experience, would constantly and reliably underestimate the true cost of their projects by thousand or tens of thousands of dollars. When they got the real estimate from a professional contractor, the sticker shock combined with the simple lack of readily available liquid funds meant that many of these projects fell through the cracks. Zalik saw a way to save most or all of those deals.

He founded GreenSky  as a way to instantly provide point-of-sale loans to high-end homeowners, who almost invariably fall into the prime-borrower category. GreenSky , then, effectively provides bridge financing for retail customers. The brilliance of the GreenSky  model lies in the fact that literally everyone participating in these deals walks away a big winner.

When GreenSky  issues a point of sale loan, the contractors get to complete five- and six-figure projects that they would have otherwise lost. The homeowners get to add tremendous value to their homes and the banks get high-quality loans on their books.

https://www.greenskyonline.com/greensky/password/forgot

Flaws of Kerrisdale Capital according to Sahm Adrangi

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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.

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.

https://www.benzinga.com/topic/sahm-adrangi