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.
Shervin Pishevar is an Iranian-American super angel investor and venture capitalist. He made his fortune investing early in Uber and other e-commerce brands. He helped found Investment company and Virgin Hyperloop One.
In early February 2018, Shervin Pishevar hopped on Twitter and sent out 50 tweets that spanned 21 hours. These tweets were filled with concerns he has about the economic future of the United States. He also had some grim warnings.
This tweet storm got its start when the Dow Jones Industrial Average took a steep decline and seriously spooked investors. Shervin Pishevar feels that it will go down another 6,000 points in aggregate. He forecasts that this fall throughout the year will knock out gains from 2017.
Back in the late 2000’s, Shervin Pishevar anticipated that Facebook would go through a crisis, which it did. He is not just a guy who is looking at numbers all day. He has successfully anticipated events that would take place in the economy. About the same time, he mentioned that the US should not believe that it could hold onto the American dream in the information age. In his twitter rant, he mentioned that what used to be the American dream is now the global dream. He added that Silicon Valley is not a physical place anymore but is an idea that has gone viral. Talented individuals do not need to come to the United States anymore.
Another point that he made was that entrepreneurs in this day and age can very easily operate across international borders. Cryptocurrency and other tools allow entrepreneurs to more easily conduct business around the world. One of the examples he mentioned was of a train station being built in China in just nine hours.
He did have some positive things to say, particularly about the company he helped cofound, Virgin Hyperloop One. He mentioned this company along with SpaceX, saying that they were moonshots that had potential to do good.
It seems that one of the main points Shervin Pishevar wants to make is that the world is going through a revolution, yet the United States is struggling to stay in the lead.