Sahm Adrangi continues to keep other companies honest. One of the these would be the century-old Eastman Kodak, which he believes is headed for some seriously negative consequences in the coming months. Granted, there is no disputing the fact that Eastman Kodak’s stock is up 187% because of their decision to engage in a partnership to launch a blockchain image licensing platform and a photographic cryptocurrency. Even with these developments, Sahm Adrangi believes that Eastman Kodak’s rise is only temporary. In short, he believes that it is akin to putting a band-aid over a much more difficult internal problem. He sees it as a hollow attempt to capitalize on the current craze that does nothing to help the poor fundamentals and leadership of Eastman Kodak.
Unfortunately, according to Sahm Adrangi this new development of Eastman Kodak is all based upon promises that are unlikely to deliver. First of all, the idea of cryptocurrency is definitely not a new idea. Even though it is definitely admirable that Eastman Kodak is trying to keep with the times, there is no reason why investors should flock to them now, especially considering they are a little bit late to the cryptocurrency party.
Secondly, Sahm Adrangi is quick to point out that Eastman Kodak has overhyped these developments to the Nth degree. They are offering investors lofty expectations for their investment buck. Delivering on these expectations will be difficult to say the least.
Finally, the new venture is being called “KodakCoin” but they are being just a tad bit too restrictive for the stock increases to continue. They are only offering this ICO to “accredited investors”, meaning that photographers have to meet a slew of financial requirements before they can invest in the new company. This is unfortunately not going to work simply because people do not respond well to restrictions. Needless to say, if Eastman Kodak expects this new cryptocurrency to be adopted as a means of exchange, they will have to much less restrictive for it to work. Of course, the other wrinkle would be the fact that Sahm Adrangi’s comany stands to gain if Eastman Kodak’s stock decreases. However, Adrangi’s track record is extremely solid to say the least.