Eastman Kodak Company is a commercial printing as well as imaging firm. Recently, the management claimed that it has been making progress regarding heightening the amount of stock. Kodak Eastman registered low sales in 2017. In fact, the sales were low to the point of hitting the average $3 from the usual $37.73 that it made in 2013. Surprisingly, Kodak announced that it had found a solution to their financial situation. The company was optimistic that this new strategy would stop the sliding sales. So, in 2018, Kodak announced a new business venture, the blockchain/crypto space.
The Business Plan
According to the business plan, Kodak was planning to create a blockchain platform to facilitate image licensing and photo-centric cryptocurrency. Consequently, Kodak partnered with WENN Digital early in the year. After the partnership, Kodak announced that its shares and revenues had gone up by 400%. In reality, the accurate figures were from the lows of $3.05 to the highs of $5.85.
How Viable was the Partnership?
Sahm Adrangi, the head cheerleader of Kerrisdale Capital Management issued a negated report regarding Kodak’s claimed victory. According to Adrangi, it is highly unlikely to come across such a case in any industry. This is because the team in charge of the cryptocurrency business launched by Kodak lacked credibility. In fact, to be more accurate about the negated report, Kerrisdale Capital joined Kodak by taking a short position.
During Kerrisdale Capital’s stay at Kodak, the company garnered sufficient evidence to warrant the writing of a negative report about Kodak and its cryptocurrency business. Sahm Adrangi stated in the same release that the announcement by Kodak is a plan to ride on the blockchain business as most investors are persuaded that it is the way forward in industry.
Sahm Adrangi first made his way to the public business platform when he blew the whistle on some of China’s largest firms. Apparently, the firms were operating illegally. Among the companies were China-Biotics, China Marine Foods, and Lihua International. Other targets included China Education Alliance and ChinaCast Education. Until now, Sahm Adrangi has committed himself to exposing companies that operate illegally.