Callouts & quotes from 26,677+ activist slides

"Seventeen acquisitions since Jacobs took control of XPO, $6.1 billion of capital deployed, and it has generated $73m of cumulative adjusted free cash flow = a failed business strategy yielding a 1.2% return on capital investment."

"The nature of Farrens’ arranged “third-party” relationship with True Science and, if true, the accounting practices which it allegedly enabled, give us concern that they were part of a broader pattern of behavior for the Company."

"One former employee painted the dendrites claims/data as fraudulent: “definitely bullshit,” “I don’t buy this, for sure,” and replied “Absolutely” when we asked if he was saying that the key slide is “made up, fiction or garbage”"

"Red flag 7: Ex-employees indicate 1% of the obstacle is testing a dendrite-resistant material, which others have done and isn't difficult, but 99% is manufacturing it at scale, where QS has shown nothing and where companies flop."

"Quantumscape's projection of ~$10B in revenue booked in 2027/28 means that VW has to commit to substantial purchases of solid-state batteries by 2022/23 – an absurd notion, given the VW concerns and questions we detailed earlier."

"We also question why management would get the benefit of such significant acquisition-related add-backs when they’ve admitted acquisitions are part of their business model. We believe they should be considered recurring expenses."

"The Summary White Paper contemplated a separation of the portfolio as a means to an end to increase the probability that the individual businesses eliminate operational underperformance vs. peers and achieve a multiple re-rating."

"If Hess is “realizing synergies from the transfer of technical skills and operating capabilities globally”(1) then... Why is Hess a less efficient operator in unconventional plays than independents without global offshore assets?"

"We believe the Zio solution is so simple as to make meaningful and sustainable differentiation a challenge. Ultimately, we view the device as highly commoditized and the results reporting activity as persistently labor-intensive."

"We believe Blackford's communications and iRhythm's actions are very concerning given his 25-year career in the medical device industry, including employment at another company that received an FDA warning letter for misbranding."

"With a ~$30 billion purchase price, Celgene’s pipeline destroys shareholder value when using the median of Wall Street analysts’ estimates for 2028 Celgene pipeline revenue and a similar discount for earlier-stage pipeline assets"

"Kao has been struggling to maintain a high ROE. In fact, it has been in decline since 2017, and has recently accelerated below 5%. Kao’s own ‘restructuring’ plans are a short-term fix that will not solve underlying growth issues."

"We believe most HIMS products are completely commoditized. Though it claims its brand is a differentiator, we believe its only competitive differentiator is easy access to prescriptions, which customers pay for via higher prices."

"This group of director nominees has already begun to put together a 100-day plan to ensure that the Board can work quickly and seamlessly with management to lay the foundations for executing our longer-term strategic initiatives."

"While Huishan has a presence on China’s largest e-commerce platforms such as T-mall, JD.com, Suning and instant messaging platform WeChat, our analysis of snapshots of e-commerce data suggest that actual sales are slow and small."

"Contrary to Phillips 66's narrative that their business mix affords investors reduced volatility and they have successfully completed their operational turnaround, the Company delivered worse earnings than all of its peer groups."

"As in paid search, while competitors quickly responded to market dynamics, AOL took a short sighted view, generating short-term revenue but not taking the requisite steps to establish a principal position in the growing business."

"If our business practices are deemed to be in violation of applicable regulations as they are or may be interpreted or enforced, or modified regulations... then we could be sanctioned and/or required to change our business model."

"Since January 2024, GFI has seen steady traffic growth while WFG’s traffic has seen a steady decline. Additionally, engagement, which measures the amount of time spent on the website, recently saw a significant expansion for GFI."

"The CEO's claim of FLAWLESS being a "brand-new category" is suspect. ULTA categorizes its products as Depilatories – hardly a new category. Sally Beauty buries the product under lubricants "Cool Care" and above the First Aid kit!"

"Contrary to Phillips 66’s narrative that their business mix affords investors reduced volatility and they have successfully completed their operational turnaround, the Company delivered worse earnings than all of its peer groups."

"CEO Adnani has regularly been talking about uranium on CNBC, but curiously the interviews do not focus on how exactly UEC will profitably produce and supply uranium along with detailed specifics about the capital costs necessary."

"The 2008 financial crisis demonstrated the resilience and attractiveness of the GSEs’ multifamily guarantee business, which produced de minimis losses. We assume this business continues operating in its current form going forward"

"When we carry the AKG's excess liquidity into 2018, and include the company's amortization of the loan and second phase of the wall pushback, we project the company has a cash shortfall ranging from -$43 million to -$129 million."

"There have been some OK acquisitions, but very little consistency from management, and the execution has been poor. But there has been pressure to continue to pursue M&A to grow the company for shareholders, and to increase comp."

"In the early aftermath of the COVID-19 Pandemic, new business formation surged while businesses increasingly focused on digital transformation initiatives, both of which created an incredibly supportive macroenvironment for BILL."

"Holding the HDD motor segment valuation constant at JPY 555 billion and taking into account Nidec's remaining ex-HDD EBITDA of JPY 111 billion, Nidec's ex-HDD implied valuation is 21.5x EV/EBITDA – very close to that of Facebook."

"The quickest way to increase the value of Yahoo's shares is to do what should have been done 4 years ago and dramatically reduce the headcount and costs of the company to something sustainable matching current revenues and EBITDA"

"Warning: Stryker's total depreciation and amortization is not being accurately reported. On the surface, 2021 D&A is $371m + $619m = $990m. According to its segment reporting, the total is almost triple: $1,272m + $619m = $1,891m"

"Spruce Point cannot account for at least $294 million in milestone payments. As later illustrated, milestone payments for Mobius and OrthoSpace appear to have been made, but where are they flowing through the cash flow statement?"

"Recall earlier in our analysis of the Wright Medical acquisition that we identified revenue contribution anomalies. Stryker's Orthopaedics segment had two acquisitions close in Q4 2020: Wright Medical (Nov) and OrthoSensor (Dec)."

"Colin Whitehouse is listed as the Chairman of CSC. However, Mr. Whitehouse’s LinkedIn page indicates that Mr. Whitehouse is a non-executive chairman of CSC and that he apparently does not even work at the joint venture full-time."

"Data providers have taken Amcor's cash at face value and do not adjust, or at least discuss, the presence of bank overdrafts or legal deposits that might restrict cash. This leads to incorrect conclusions about Amcor's liquidity."

"We observe that the 2018 annual changes in the operating assets and liabilities of Aerojet netted to exactly zero. This supports our view that Adjusted EBITDAP and EPS growth are low quality and enhanced by aggressive accounting."

"Had electricity been harnessed during the medieval age, one might characterize stimulators as medieval in their underlying simplicity, crudeness, and adverse effects, despite the field favoring fancier terms like neuromodulation."

"Investors are oblivious to one of Nevro’s greatest risks: its business model, far more than any other stimulator company, is predicated in our opinion on reps and other employees engaging in the unauthorized practice of medicine."

"That's why I said CLEAR is ran by hedge fund people, not by tech people. It is their biggest challenge. Fundamentally, the biggest shift and challenge that that organization is facing is the inability to think like a tech person."

"The 2008 financial crisis demonstrated the resilience and attractiveness of the GSEs’ multifamily guarantee business, which produced de minimis losses. We assume this business continues operating in its current form going forward"

"It seems Zillow's management believes Flex and MBP can coexist in the same markets. We believe Zillow is walking a very fine line and our research indicates that it will be difficult for the two models to coexist in the long run."

"Our interviews with Utah and other high-volume centers were striking, as they detailed participation in what sounds to us like an overt organ trafficking racket while at the same time acknowledging that “it’s definitely improper”"

"While TransMedics claims that its pump has grown transplant volumes by making DCD organs usable, the claim is false: DCD's have spiked because OPO's and transplant centers are under pressure to show volume for compliance reasons."

"you can push it up to about 50%...the problem is that the fat doesn't transplant well, but if you can re-perfuse it and let the organ calm down on the TransMedics pump...then all that fat washes out over the next couple of weeks."

"In reality, it is a one-trick pony in liver, with zero chance in kidney, the most widely transplanted organ by orders of magnitude; OCS Lung, run by the CEO’s sister, is a colossal failure; and OCS Heart is currently in freefall."

"AST is among the most ambitious yet of its generation of zero-revenue SPACs, and we think its lofty ambitions of providing viable 4G-like mobile internet connectivity to the planet's cell phones will never come close to fruition."

"IRBT would like analysts and investors to believe that it is a high-tech company worthy of a premium valuation. However, we observe that IRBT is now spending more on sales and marketing than actual research and development costs!"

"Stated that diazoxide can be fatal and is contraindicated in patients with elevated pulmonary pressures - common in PWS patients due to obesity and diabetes, both of which greatly increase risk of increased pulmonary hypertension"

"There are numerous complaints from customers unable to speak with anyone over the phone at FND. Spruce Point also tried calling a multiple stores across the country and was equally frustrated with an inability to speak to anyone."

"You bring up a very good points, but if you review the studies and look at the studies, this information is not suggested in the study. Correct. I have that correct. You are hearing information that a lot of people haven't heard."

"Google Earth photos from 2008 to 2018 show only little changes to the property. Meanwhile, we also stress that the county assessor office allocates a modest $770,000 to the properties, which we believe to be much more reasonable."

"It appears that YT transferred 4.5 million shares to a creditor via Blitz in April 2020 after the bankruptcy had already begun and one month after he had stated to the bankruptcy court that he had no interest whatsoever in Blitz."

"This setup resembles a makeshift light assembly area, as if this EH216 was simply snapped together right here. Again, nothing resembling an industrial grade assembly line you would typically see in an automobile or drone factory."

"TSMC has concluded that EUV mask inspection is a failure given Lasertec’s defective technology, and now simply uses legacy DUV tools instead with a ~200nm light source – stating that DUV is sufficient for EUV masks in production."

"TSMC indicates KLA DUV tools have superior economics, productivity, and throughput vs. Lasertec; using DUV inspection now vs EUV in production; TSMC has basically switched from Lasertec to KLA; “KLA’s share continues to increase”"

"Avery's NTM valuation relative to its closest materials and specialty chemical adhesive peers cannot be justified by Avery having higher free cash flow, or faster sales growth potential. It's dividend yield is also below market."

"Spruce Point finds it troubling that GFL restated results and did not notify investors of the change. The large increase of intercompany revenue, and boosting of Solid Waste segment results, is alarming in light of our research."

"We note that Procept quoted an 11% procedure CAGR from 2016 to 2019 in its IPO prospectus. The data above yields just a 3.1% CAGR and raises the prospect that Procept ignored the distorting impact of Rezum volumes added in 2019."

"Kingshott's biography omits his role at Novator Advisors which solicited at least 16 participants in the note fraud Ponzi Scheme. The Trustee asserts "that Kingshott was aware of the implausible story Drier gave many investors.""

"Spruce Point believes there is significant downside risk to DY’s share price as its premium multiple is reconsidered by institutional investors in the face of our strong evidence to indicate that it is masking growing pressures."

"This document is not intended to be used to and does not itself solicit proxies to vote in any TIM shareholders' meeting, nor will EAUK accept proxies from any TIM shareholder to attend and vote in any TIM shareholders' meeting."

"The point of a strategic process is not to sell the Company below its intrinsic value, but to explore whether shareholders could monetize their shares at or above intrinsic value today without having to take any execution risks."