Why Sahm Adrangi Gave Kodak A Negative Outlook
Most Wall Street analysts are hesitant to give negative outlooks on company’s future. However, one analyst has recently gone bearish one of the most well-known names in the business world. That analyst, Sahm Adrangi, has decided that Kodak is one company that most investors should avoid in the near-term.
So why is Sahm Adrangi bearish on Kodak stock? Well, Kodak recently released some news about the creation of KODAKCoin and KODAKOne, projects that take advantage of the emerging blockchain technology. This move, the analysis believes, is just a distraction from the fact that the company is in deep financial trouble.
Mr. Adrangi also goes on to explain that many of the members of Kodak’s board had granted themselves restricted stock only one day before the announcement of the blockchain project. Mr. Adrangi finds the timing of the stock award to be suspicious and could mean that this announcement was simply made to temporarily push the stock price up at the benefit of the board members.
In summation, Mr. Adrangi does not believe that Kodak’s recent move into blockchain will save the troubled company in the long term. The analyst cites the company’s declining revenue as well as the company’s lack of innovation and negative cash flow. Additionally, Mr. Adrangi also sees Kodak’s mounting default risk as another reason to be negative on the company.
Sahm Adrangi works at Kerrisdale Capital Management LLC as their Chief Investment Officer. He also happens to be the founder of the company. Mr. Adrangi has been with the company since they opened their doors back in 2009. Since then, Mr. Adrangi has helped steer Kerrisdale Capital Management LLC to higher revenue and continued success.
Prior to founding Kerrisdale Capital Management LLC, Mr. Adrangi worked at Chanin Capital Partners in their bankruptcy restructuring group. His responsibilities at Chanin Capital Partners included advising companies in Chapter 11 bankruptcy restructurings as well as representing bank debt holders during the bankruptcy process. Sahm Adrangi received his Bachelor of Arts in Economics from Yale University. Today, Mr. Adrangi is considered one of the leading short-side analysts on Wall Street.
$LOCK at $20 — Elliot is sort of amazing with their M&A plays
— Sahm Adrangi (@SahmAdrangi) November 17, 2016
Tags : bankruptcy | blockchain | Chanin Capital Partners | Kodak | Sahm Adrangi | stock award