SahmAdrangi’s Thoughts on Poor Performing Publicly-traded Companies like GNC

SahmAdrangi, a retired hedge fund credit trader, believes that doubling a bet amidst trading requires critical thinking. The 35-year old credit analyst also believes that research on stock markets can help in eliminating common mistakes that most traders make these days. As a trader, he prefers to buy shares at a lower price and watch them grow with time. GNC is one of the publicly-traded companies that SahmAdrangi has included in his list in terms of low stock performance. GNC is on the brink of financial instability since its shares are trading poorly on the stock exchange market. This poor performance has been attributed to the company’s outdated financial models.

According to Adrangi, GNC can learn from what Bodybuilding.com did when it had a financial crisis. To be precise, 15 percent of the employees of Bodybuilding.com were laid off to help the firm get back to its feet. As a firm with a huge debt and poorly performing shares, GNC can try laying off a reasonable percentage of its professional team. In 1929, a firm known as Dow Jones Industrial had similar challenges that GNC is currently facing. Dow Jones managed to close at a high of 381 on September 3, 1929. The firm’s stock value was at a low of 41.4 on March 6, 1993. Fortunately, this value increased by 15 percent nine days later. GNC’s highest stock value was $60.96 on November 23, 2013. This figure reduced to $6.95 on February 16, 2017. GNC might get back to its feet soon if the firm’s management team restructures its financial model.

Adrangi’s Career Background

With unparalleled experience in the hedge fund industry, Adrangi used the capital of $1 million to establish Kerrisdale Capital Management. This venture has over $350 million in assets under management as of 2017. Prior to launching Kerrisdale Capital, Adrangi exposed fraudulent Chinese ventures like Lihua International and China Marine Food Group. He also spent part of his career publishing short-selling research papers. Adrangi attended Yale University and got a BA in economics. Companies he previously worked for include Longacre Management and Chanin Capital Partners. As a public speaker, he has been featured at the Sohn Conference, Traders 4 a cause, and the Value Investing Conference.