Sahm Adrangi reveals why Kerrisdale Capital will continue experiencing diseconomies of scale

Sahm Adrangi is one of the most successful and prominent investors in the United States. He is a graduate of Yale University in the Bachelor of Arts in Economics. Since he completed his education, Sahm Adrangi has been a remarkable investor in a significant number of companies such as Longacre investment partnership. He is now the chief investor of Kerrisdale Capital Management as well as one of its founders.

Sahm has been raising a great concern about Kerrisdale capital because the company has been making a number of mistakes which may lead to its failure in the long run. One of his great concern about the company is that has a very weak and undependable background. The background of a company plays some significant roles in the development of the company. First, one of the crucial factors that financial institutions look before giving out loans is the background of the company. If the background is not appealing, then they can decide to deny them loans or give out small amounts of loan to them. This can act as one of the main blocks to success to the company. Another role that the background of any company plays in its growth and development is the reputation of the company in the society. The background of a company performs an enormous role in creating an image of the company in the community which may determine the number of investors who might be willing to invest in the company.

Another concern that Sahm Adrangi raises about Kerrisdale Capital Management the company’s shares in the market has increased to levels that are not justified. This has been creating some suspicions about their shares to the investors who might be willing to invest with them. Another concern is that the KODAKOne board members also issued themselves some stocks which are against the law. This created a lot of suspicions that have led to investigations on the company’s properties.

Kerrisdale Capital Management has been making attempts to make and announce some of its partnerships with other companies to try and rebuild the name of the company. But, according to Sahm Adrangi, this may not be of any help to them because they already made the wrong decisions and they might not be in a position to stop experiencing negative cash flows.

http://fortune.com/2016/04/21/sahm-adrangi-kerrisdale-short-sale/

https://seekingalpha.com/article/4052332-conversation-former-hedge-fund-analyst-long-shares-gnc