Callouts & quotes from 984+ activist slides

"A close evaluation of the transaction shows that neither the CEO/founder of LiNiCo or Aqua Metals are putting any real cash into the deal. In fact, the Founder is receiving $500,000, but for no explicitly clear reason."

"XPO has abandoned its attempt at expanding organic revenue disclosure post Q1’18. Through YTD Q3’18, organic quarterly revenue growth has averaged 10.8%, yet equates to just 3.2% YTD organic operating cash flow growth."

"PowerSchool is among the most highly levered companies in its industry; a standout where many peer companies are net cash. Only TWOU, a company that has recently been linked to financial challenges, has worse leverage."

"Even as management has spent nearly $1B on acquisitions since FY15, revenue, Adj. EBITDA, operating cash flow, and free cash flow have remained largely flat, while free cash flow per share is down over the same period."

"The cash pooling of £1,073,000 in 2022 and £1,550,000 in 2021 has been restated from intercompany to cash at bank, as cash is swept by the NSC daily, however the decisions on controlling the funds is with the business."

"Paringa said that its coal project had “a clear path to predictable, strong cash flows”. They also promoted a “Secured US$205 Million Sales Contract”. Sales never materialized and the share price ultimately collapsed."

"We observe that a number of cash flow line items which ought to correspond directly to changes in balance sheet line items at times demonstrate inexplicable discrepancies. These discrepancies are at times significant."

"If the Company had sold midstream before recent market volatility, it could be sitting on net cash proceeds of ~$30 billion (70% current market capitalization) that could be used for debt paydown and stock repurchases"

"If the Company had sold midstream before recent market volatility, it could be sitting on net cash proceeds of ~$30 billion (70% current market capitalization) that could be used for debt paydown and stock repurchases"

"MGPI has a weak financial profile that cannot fund its own growth. Its cumulative free cash flow since 2012 is just $1.5 million! As a result, MGPI is becoming more dependent on short-term revolving credit borrowings."

"MTD’s valuation expansion in the current cycle is absurd in the context that investors are paying a higher multiple every year for a company that has directed +80% of its total cash flow just to purchasing its stock."

"We believe Amcor is obscuring significant financial strain (organic revenue decline 3.0% - 4.0%, cash overdrafts and cash flow contraction) that will place its dividend and BBB investment grade credit rating at risk."

"The Company claims revisions did not have an impact on the operating results. Yet, there are clear revisions to net income, depreciation and amortization expense, with the net result being optically higher cash flow."

"Dennelind apparently recognized the lack of commercial rationale for this acquisition in the first place, but we wonder if this hasty divestiture is related to the company's difficulties repatriating cash from Nepal."

"As we discuss infra, the mention of a “mandatory takeover offer price” appears to be a false excuse. The adjustment seems to have merely been a way to extract an additional €52.1 million cash from outside investors."

"Management has become addicted to dilution as a way of bridging the gap created by its lack of core cash flows from operations, increasing shares outstanding by 70% since December 2022, and the pace is accelerating."

"Revenue attributed to "noncash consideration", a result of value-in-kind / contra deals (i.e. barter transactions), raises significant concerns regarding Genius’ revenue recognition and reported / forecasted growth"

"Going into the current economic correction, BR has limited cash flow available for debt reduction given its growing commitment to paying its dividend - now costing nearly $340 million per year ($2.90/share a year)."

"By moving the asset from inventory, to other noncurrent (long-term) accounts, Stryker could potentially be enabling operating cash flow overstatement or avoiding impairment of assets where customers have defaulted."

"Cumulatively, the amount of taxes under-reported on the income statement relative to cash taxes paid is ~$142m. Therefore, we argue that Net Income has also been cumulatively overstated by the corresponding amount."

"Cash flow significantly benefited in recent years from tax refunds that exceeded early projections. Now that these “one-time” benefits are behind AMR, cash flow will be more reliant on core coal mining operations."

"Excess cash of up to KRW 6.0 trillion (18% of HMC market cap) should be reduced from HMC's balance sheet Excess cash of up to KRW 6.0 trillion (26% of Mobis market cap) should be reduced from Mobis's balance sheet"

"Given its high insider ownership, if Dillard's maintains its free cash flow and share repurchase levels, then at the current stock price we estimate it would buy back nearly its entire float in the next five years"

"We believe that Remitly is dependent on keeping the perceived value of its equity high because it is among the most aggressive issuers of stock-based compensation at 12% of revenue and 78% of operating cash flow."

"Pramac’s Italian financial statements suggest channel stuffing or accelerated booking of revenue well ahead of cash collection. We observe its receivables to sales ratio is over 40%, or nearly 3x Generac’s ratio."

"We fear that management is simply looking to move into a sexy and easily-hyped business line to continue to promote the Company, and we have little confidence that MVI will amount to anything but a waste of cash."

"Consistent, cash-generating trading business combined with higher growth project development business. Both require low working capital while having significant synergies with other SCT segments and Samsung Group"

"Kao could bring its Cash Conversion Cycle and Non-Cash Working Capital (relative to sales) down dramatically and free up over JPY 150bn by 2027 versus 2024 levels that could be better spent on growth initiatives."

"Technology companies have operated differently – particularly some of the largest, most successful companies. They have accumulated enormous amounts of cash that sit idle on their balance sheets for years on end."

"The Income Statement tracks profitability while the Cash Flow Statement tracks cash movements. The Cash Flow Statement bridges Net Income, which is the punchline number from Income Statement, to actual cash flow."

"But therein lies to the key to the fraud – while Lasertec claims to have the highest profitability, its cash conversion is the lowest – a striking anomaly at the center of the largest corporate frauds in history."

"50 or 60 million compared to 40 million dividend amount - and it has almost been doubled -; these are impressive figures, two-thirds of total assets, with a write-off only partially as much as the cash dividend."

"Plc accounts for 77% of Rio's shareholder base but generates <20% of group EBITDA, meaning Ltd is required to support Plc by transferring cash and profit reserves to Plc to fund distributions to Plc shareholders"

"Spruce Point is skeptical about the quality and valuation of targets acquired by Perion. It has paid just ~30% cash upfront and structured most payments as contingent payment earn-outs if the businesses succeed."

"Though one can find convenient examples for buybacks and dividends being bad for the share price, failing to return excess cash in the face of a low multiple usually depresses share price and valuations further."

"After appropriately valuing its high quality franchise and real estate cash flows, even “unfixed” Wendy’s is worth $35 today. If the Company improves its company-operated store margins, the business is worth $42"

"Lasertec is an extreme, textbook accounting fraud that checks off every box: claiming to have the highest margins in the industry; but alarmingly little cash flow and the lowest cash conversion among its peers."

"Assuming that Olam requires a minimum of S$100 million in cash on hand to continue operating, we believe that Olam may have to raise or refinance S$4.6 billion in debt in the next twelve months to stay solvent."

"Therefore, either DLO's disclosures are inadequate (i.e., more detail is needed to disaggregate merchant account balances from those of DLO), inaccurate, or DLO likely used client funds for its 2020 cash needs."

"GFL's capex listed through the cash flow statement does not reconcile with capex additions through the PP&E accounts. As a result, we believe capex is being capitalized on the balance sheet by at least C$41.1m"

"Question: Why does the Services Agreement contemplate a 1.5% advisory fee rather than paying the new management team with a more typical cash and stock compensation construct used by most operating businesses?"

"Assuming Valeant de-levers and maintains 3.5 turns of leverage, allocates free cash flow to acquisitions, and grows at a rate reflective of the strength of its franchises, the stock is tremendously undervalued"

"High fixed interest rates payments risk incentivising Management to bid uneconomically for short-term cash flow at significant long-term risk to shareholders, especially since Management owns very little stock"

"Assuming Valeant de-levers and maintains 3.5 turns of leverage, allocates free cash flow to acquisitions, and grows at a rate reflective of the strength of its franchises, the stock is tremendously undervalued"

"From local filings, we see that its EBITDA margin has fallen sharply over the past three years from 7.8% to 3.9% (Adj EBITDA from 8.2% to 6.0%), while operating cash flow amounted to just A$3 million in 2022."

"High fixed interest rate payments risk incentivising Management to bid uneconomically for short-term cash flow at significant long-term risk to shareholders, especially since Management owns very little stock"

"Spruce Point observes that Philip Services Corp. also understated its Capex through the cash flow statement after completing its IPO in the U.S. and Canada. The stock eventually collapsed towards insolvency."

"Oklo uses “illustrative unit economics” to promote the anticipated low capital costs and cash returns... We believe there are several problems with Oklo’s unit economics which render them grossly misleading."

"we are proposing that TI adopt a dynamic capacity-management strategy and introduce a free cash flow per share target of $9.00+ in 2026, representing a level that is ~40% above current investor expectations."

"But therein lies a key to the fraud - while Lasertec claims to have the highest profitability, its cash conversion is the lowest - a striking anomaly at the center of the largest corporate frauds in history."

"As the discrepancy between accounting income and cash flow widens, funding the dividend becomes tricky – consensus earnings estimates for 2025/2026 imply a dividend that is unrealistic vs. cash or cash flow."

"We are alarmed by the Q1'25 surge in accounts payable, which cannot be explained by the Ambry acquisition which included just $0.2m of additions. Tempus may be stretching out payables to generate cash flow."

"TFS claims that the issue of risk is mitigated through the assumption that the value of the plantations (which TFS can reclaim in the event of default) is allegedly greater than the cash value of the debts."

"There is so little competition that the opportunities to buy fine companies with double-digit cash-on-cash returns are more abundant than at any time in my career, other than at the bottom of a bear market."

"We theorize that the 1.5% interest rate is likely equivalent to what the company would have earned on the cash balance, and therefore was needed to plug the hole created by having actually funded the loan."

"This undrawn facility amount has decreased RMB 6.25 billion over the last six months to RMB 4.98 billion, which is somewhat alarming since the company supposedly generated free cash flow in that same time."

"Note: Our Free Cash Flows are derived using Net Capital Expenditures, net of proceeds received from closures. We note that the Company typically generates $300 - $400mm of proceeds annually from closings."

"We are unable to reconcile certain balance sheet and cash flow statement accounts. The balance sheet accounts show additions that are €24.8 million greater than what the cash flow statement seems to show."

"If Box’s goal was truly to lower the share count and boost EPS, Box could have replicated the intended impact simply by repurchasing $11-$66 million of stock via the Company’s $600+ million cash balance."

"Furthermore, we believe YY either transferred roughly RMB 1.326 billion to its WFOEs—the majority of which would have been transferred to its offshore WFOEs illegally—, or the cash simply does not exist."