The imaging and commercial print company Eastman Kodak recently saw its stock peak in 2013 at almost $40 but quickly slid down to less than 3 in the final quarter of 2017. In what Sahm Adrangi sees as an attempt to stop the free-fall and increase stock prices, they recently announced their own image licensing program and cryptocurrency. The image licensing platform is based on the blockchain technology that’s being used in many online transactions. Sahm Adrangi sees this as Kodak’s attempt to profit off of the fad in digital currencies that has been taking the world by storm in the last couple of years.
While Kodak’s stock may have quickly jumped by about 400% after the announcement of their new products, within a month they were down to within $3 of the initial price. The new products known as KodakCoin and KodakOne are being developed by Kodak in conjunction with the company Wenn Digital. The involvement of Wenn Digital is one of the many reasons why Sahm Adrangi has so many negative speculations concerning the Kodak Eastman Company. Over the past few years, Wenn Digital has been the target of concerns and criticism over their business practices concerning other digital currencies.
Sahm Adrangi doesn’t see any real reason for Kodak to implement the type of blockchain enabled licensing that they have announced. While it sounds good in theory to the artists and photographers that would like to license their images, Sahm Adrangi doesn’t see it actually going much to protect their digital assets in the long run. Coupled with the KodakCoin system that is supposed to be used to pay the artists’ revenue, he sees the future as pretty bleak for KodakOne and KodakCoin.
While the buzz around these new products may have driven up the prices for the company temporarily, Sahm Adrangi doesn’t see it lasting. This is why he and his company Kerrisdale Capital have taken a short position on the stock. If their predictions are right, Kerrisdale Capital and their investors may stand to make a good amount of money off of the company’s failure.