Companies are not always honest about their ventures. In a bid to gain confidence from investors, they sometimes overhype their projects. This causes their stocks to rise considerably. However, most investors are oblivious of the other side of the coin. Some unknown information lurking in the dark. Well, that’s where Kerrisdale Capital’s Sahm Adrangi comes in to bring this information into the light by issuing a negative report. St. Joe Company is a firm that had a run-in with Kerrisdale Capital.
The real estate company located in Florida hoped to transform a large area of the desolate land that is near Panama City Beach and make it into a desirable destination for businesses and retirees. The company which had valued itself at $1 billion, was unmasked as being unlikely to make true its developments in their projected plan. In reality, the company had made no effort in its interior land as well as in securing permits, building department inquiries or other forms of advancement.
QuinStreet is another firm that was in Sahm Adrangi’s bad books. The firm, which majors in internet marketing, recently had its stock price quadruple. This caused investors to develop faith in the company, citing its change in fortunes to mean that it was moving in the right direction. However, Kerrisdale shone its light on how sustainable the business was as well as its quality. They argued that QuinStreet was the beneficiary of sham web traffic and thus received a negative report from Kerrisdale.
Of the big fish Sahm Adrangi has gone after, Eastman Kodak Company must be top on the list. The commercial imaging and printing company saw its stock rise 187% after it announced it had partnered to come up with an image licensing platform that would be blockchain-enabled. However, Kerrisdale published a negative report announcing that the company was chasing the ICO craze but this will not improve the company’s declining fundamentals and their capital structure that is unsustainable.
When Kerrisdale Capital publishes a negative report on a company, it usually has a short position on the company and benefits if the company’s stock price falls. Sahm Adrangi is the Chief Investment Officer of the company.