Callouts & quotes from 26,677+ activist slides

"Since the recent financial crisis, the Federal Reserve has struggled to stimulate the US economy, resorting to massive quantitative easing and promises of extended ultra-low interest rates"

"Even then, claiming that the business was generating quarterly revenue “in the forties” was a sizable mischaracterization, even when taking only the assets acquired by Amdocs into account."

"Spruce Point observes that Saputo recently made a change of description in a key operating cost classification from "Selling Costs" to "Other Selling Costs" in the most recent Fiscal Year."

"I would say that we also have to be careful. Because for as much as potentially private label would be the go-to for some customers in tough economic times, it's also a question of supply."

"Beginning in January 2018, leadership of both the Board and management team was consolidated with Peter Huntsman, and shortly thereafter, the Company declared itself as “The New Huntsman”."

"The physical location of Beijing Mushang Culture Media appears to be somewhat of a mystery. Spruce Point suspects that these operations may potentially be carried out in Momo headquarters."

"Herbalife believes the majority of its distributors are discount buyers, who become distributors in order to purchase their favorite Herbalife products at a minimum discount of 25 percent."

"Herbalife has made this statement in each of its U.S. distributor earnings disclosures since 2003, even though Sales Leaders as a % of total distributors has been lower than 25% since 2009"

"The lack of security in the STJ pacemaker and ICD infrastructure stunned MedSec. STJ’s apparent lack of device security is egregious, and in our view, likely a product of years of neglect."

"Why did PPG stop disclosing the number of company operated paint stores in 2016? Is there a more structural issue with its store network that management is not disclosing to its investors?"

"Proceeds were used to refinance debt including a bridge loan related to our UK acquisition and drawings under our revolving credit facility; some of the proceeds will also be held in cash."

"Another Audit Committee member is Raul Vazquez, the founder and CEO of controversial fintech Oportun. With a history of alleged consumer-unfriendly behavior and multiple rounds of layoffs."

"Starbucks is unlikely to achieve even the low end of its long-term SSS target in 2018 (9M'18 SSS were 2%; guidance for Q4'18 is 3%), causing concern the company will reduce targets further"

"Spruce Point believes the timing of CEO Gerstel’s announced departure on February 8, 2023 is alarming and that his successor, who led CodeFuel the search business, is foreshadowing issues."

"With sales growth from new products set to plateau and margin expansion opportunities largely exhausted, we believe that Hill-Rom growth and earnings will underperform sell-side estimates."

"In the five years preceding our involvement, Autodesk’s share price significantly underperformed design software peers, the broader software market, and the overall market, as shown below."

"Spruce Point believes that investors should carefully research many of Porch's recent acquisitions. We believe the biggest red flag is Porch recently being accused of fraud by Kandela....."

"At the time of the public newspaper accusations, Hernan Uribe Zeballos was chief geologist at Prophecy. He later became country manager of New Pacific/Alcira, a role he serves to this day."

"It stuns us that analysts and investors give management any credence when they speak about targets and expectations – there seems to be a complete failure to hold Mr. Nagamori accountable."

"When Nidec acquired ASI, it projected that it would increase the OP margin from the mid-single digits to 10%. ASI’s financials show this has not yet happened at least as of March 31, 2015."

"BlackRock proclaims itself as a defender of governance for the benefit of its clients, but does not concern itself with having below-average governance to the detriment of its shareholders"

"Glass Lewis believes that the installation of an independent chair is almost always a positive step from a corporate governance perspective and promotes the best interests of shareholders."

"Lack of BLI adoption in academia and absence of anything meaningful in the literature dooms its trajectory and scientific credibility; leads scientists to instantly dismiss the instrument."

"We believe TFS intentionally uses misleading statements, biased research and seriously questionable accounting practices to inflate the value of both the sandalwood and the company itself."

"HMA's Quality Requirement does not require superior performance in quality, only results at or above the national median on only roughly half (7 of 13) of the CMS process-of-care measures."

"Extending the guarantee period presumably continued to keep losses on these associates from being realized on Fairfax's income statement and / or avoids Fairfax having to lay out the cash."

"We estimate that the unit economics of newly acquired customers have actually gotten worse — from a $10 average loss per customer we estimated back in 2017, to $19 per customer in Q2 2018."

"ACMR has ambitions beyond the cleaning market and has developed differentiated products in five key areas that expand the company's SAM by $3.5 billion in China and $11.1 billion globally."

"REZI has been completely quiet in talking about First Alert’s premium brand called Onelink. We think we know the likely reason why: It appears that its premium brand has been discontinued."

"11. Current employees at Ginkgo’s related-party “customers,” as well as former employees of Ginkgo, corroborated our findings that Ginkgo’s model is based on overcharging captive entities."

"The most likely use for the “diverted” CapEx was that of an accounting gimmick wherein Management needed to balance inflated sales (and therefore not existent cash) with inflated expenses."

"Phillips 66 has materially overstated the costs associated with a spin or sale of its Midstream business to cloud the simple, clear math showing the potential value unlock of a separation."

"Verint’s balance sheet, meanwhile – saddled by $650M of net debt at 3x leverage, by our estimates – will likely restrict it from making similarly-sizable investments in cloud capabilities."

"Capital return (cash dividend + buyback) of 40 to 50% of net income is the minimum level that should be targeted immediately for each of Mobis, HMC and Kia to be comparable to global peers"

"As LHCG hit its maximum compensation EPS target exactly in FY18, management perhaps would have missed its target had it not reallocated definite-lived AFAM trade name assets into goodwill."

"ULA is a material customer to Aerojet, accounting for 17% of revenues in 2018. Based on recent commentary from Lockheed Martin (LMT), ULA's earnings are expected to decline by 47% in 2019."

"It is therefore no surprise that one KOL after another indicated that reimbursement is now "the hardest it has ever been" and that payors are escalating denials and making it "impossible.""

"Spruce Point finds it very alarming that CLEAR shares non-biometric data, but maybe more importantly that data is not only subject to a data breach at CLEAR but also its Service Providers."

"Phillips 66 (NYSE: PSX) shareholders, act today to #Streamline66. Vote the GOLD card FOR Elliott's highly qualified nominees and proposal to implement annual elections for all board seats."

"Epic makes complete software solutions for hospitals, large medical groups, and integrated healthcare organizations, and has emerged as the undisputed winner from the fragmented IT market."

"Spruce Point observes canola oil prices are exploding, and DNMR is exposed. The CEO's comments about hedging its exposure are not supported by documented disclosures in the Company's 10-K."

"As discussed in our January 16th presentation, “The Art of the Deal”, we believe the likely privatization path will result in 5x to 6x upside for FNMA and FMCC shares in two to three years"

"The Company previously reported total net write-ups, regardless of materiality. The Company has reduced disclosure and now only reports net write ups with a $0.5 million or greater impact."

"If Petersen had already been marked at 60% of the subsequent monetization value, then BUR would have needed to net out the $58 million Fair Value Gain against H1 2019 Fair Value Movements."

"Spruce Point finds it interesting that management restructured this lease agreement just as new lease accounting standards permitted it to recognize associated revenue and profit up front."

"We continue to view Fannie and Freddie as valuable perpetual options on their eventual exit from conservatorship due to their widely acknowledged irreplaceable role in U.S. housing finance"

"A sharp increase in operating expenses as a percentage of sales have resulted in AOL's EBITDA margins declining from 34% in 2009 to 16% in 2011 and falling substantially below peer levels."

"The stonewalling, evasion and general lack of transparency simply speaks to how poorly the program is developing, and the company's growing difficulties in bringing Bluebird-1 to fruition."

"Perhaps they were sold above-market to Dollar City in FY 2013, when the relationship began. Could this be the reason for an unexplained $14.9M disposal of leasehold improvements that year?"

"Today Sony trades at only 11x earnings and a 7% (12% normalized for semiconductor growth spending) unlevered FCF yield, making it one of the cheapest large cap stocks globally, in our view"

"The key, devastating takeaway from the FB group: in the last few weeks, the 4 posts with the most engagement and largest number of comments – by orders of magnitude – are sharply negative."

"Lightspeed commands a lofty valuation rivaling best-of-breed peer Shopify, despite an inferior business, that since inception in 2005, has shown no evidence of generating economic profits."

"Nine of the deaths are noted in a table on p10 of the CDER review. Six were sudden deaths (four found dead at home) that could have been due to heart failure – no autopsies were performed."

"Similarly, neither the FDA nor EMA ever mentioned the risk of drug-induced phospholipidosis, which causes inflammatory reactions – which are of course associated with elevated eosinophils."

"Limited details regarding medical history, concomitant medications and clinical course were provided; however, due to the temporal relationship, a causal role of WAKIX cannot be ruled out."

"Doesn’t even think the drug works and not enthusiastic: “...the main drawback is that it doesn’t work or works very little”; “not going to be like a miraculous wonder drug that goes nuts.”"

"Based on SMCI's recent 10-K and 10-Q disclosure we see the growing profile of a large customer. However, SMCI does not disclose this customer in its SEC filings or on its conference calls."

"Movers+Shakers employed at least one Ex-DOS member who defended Raniere’s branding of women, and the employment was during the time it was well known by the public of the cult’s practices."

"Since Martin Franklin joined Jarden in 2001, the company has achieved success as a well-managed consolidator of consumer products assets, generating a ~45x total shareholder return to-date"

"The deconsolidation of 58 Home seems to be artificially engineered to window dress financials. We also doubt that the idea that WUBA is not effectively exercising control over the company."