When looking to invest in the stock market, taking the necessary steps to protect your investment is very important. For those that are looking to improve their diligence and protect their assets, one individual to take financial and investment advice from is Sahm Adrangi, who is currently the head of Kerrisdale Capital.
Sahm Adrangi will frequently provide insight into stocks that appear to be overvalued or company investments that do not seem right. Over the past few months, he has issued a report on Eastman Kodak, which is best known for being the creator of the Kodak line of cameras. This company has historically been considered a stable company and has not seen too much volatility in the stock price. However, in 2017 the company saw a big pop in the share price when they announced that they were going to release a new digital coin.
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
Similar to other companies that announced that they were going to have an Initial Coin Offering, the share price of Eastman Kodak increased substantially over a two-week period. While Sahm Adrangi believes that there is potential for digital coins and currencies as a whole, he does not believe that this move necessarily made sense for Eastman Kodak and he believed that the share price was way too high.
One of the reasons why Adrangi believes that the share price was too high is that there may not be a real need for Kodak to even have a coin. Sam Adrangi does not necessarily think that Kodak is going to benefit from having a coin and the company that is creating the coin does not have the best reputation.
Overall, Sahm Adrangi believes that the share price of the stock of Eastman Kodak will decline once the hype behind the coin is over. This could lead to a drop in price that is below where Kodak was even before they released news about the coin. What is concerning is whether the company has invested heavily in the coin to the point where they could have wasted a lot of money that could have been invested in other areas.