Callouts & quotes from 26,677+ activist slides

"ZJK claims to have a collaboration with Nvidia to manufacture liquid cooling systems, and is an “approved vendor”. Our evidence shows that this is false – there’s no connection whatsoever between the two companies."

"QTT has not denied the accuracy of the ad distribution in our sample. Instead, QTT used a series of qualified assumptions to imagine a scenario that could create a skewed distribution of ad traffic on its platform."

"We would argue that QTT's business model is inherently reliant on fake user growth and fake traffic, as monetary incentives replace genuine engagement; how many real DAUs would QTT retain if it stopped paying them?"

"Elliott indicated that it is open to collaborating with the Board on a path forward, but absent alignment Elliott intends to move expeditiously to give shareholders a direct say on the necessary leadership changes."

"I think it's important that the iconic brands in our country be strong. You know, you're not guaranteed a spot at the table. You have to fight for that spot at the table and you have to perform and everything else."

"If the customer has not even been identified, how can the sales process have been started? It can't, and better fits the definition of a daydream: “a pleasant visionary usually wishful creation of the imagination.”"

"With insufficient light source stability and brightness, "you’ll get a frame where there’s just not enough light and uniformity...you’re going to have dark area and that’s going to cause a false defect to show up.""

"We expect the Board to respond promptly and on a public basis to our formal shareholder proposal by confirming by no later than 6PM JST on 26 April 2024 that the Advisory Resolution will be added to the AGM agenda."

"The robust strategic review did not, however, result in a definitive offer at a price that offered a superior alternative to the long-term stockholder value potentially created by Intermex's current business model"

"Moe Tassoudji is Nuvei’s VP of North American eCommerce. We believe his biography on Nuvei’s website is terse. A prior website version provided member’s LinkedIn profiles, while Mr. Tassoudji does not provide one."

"Genius currently trades at a premium to peers on a sales and EBITDA multiple basis while generating significantly lower margins than peers and below average projected revenue growth to online gaming and B2B peers."

"To grow margin, we have to incorporate innovation, which is a really difficult hill to climb. We can do it in pieces and parts, but there are not a lot of super large opportunities to expand margins in that space."

"How could it not predict the outcome? With net losses projected to be ~$270m in the first nine months through Sept 30th and seeking funds through an IPO, how could GFL argue that a $15m settlement wasn’t material?"

"WTRG's debt has exploded to over $6.8 billion, and it has raised more than $10 billion of total capital. Investment banks make plenty of fees from companies such as WTRG that are highly dependent on raising money."

"We believe the basis for Generac's clean energy business promotion is to deflect attention from its core generator business, which the Company once admitted in an investor presentation are "Legacy Growth Drivers.""

"Spruce Point finds managements’ promotion, and the market’s hype, regarding a potential uplisting unlikely to be realized, as ABML does not meet the listing requirements set by either the NYSE or Nasdaq exchanges."

"Interestingly, management appears to treat the "gift" as a component of COGS (and capitalizes some costs in inventory) rather than as part of compensation expense in SG&A, thereby inflating GPU by adjusting for it"

"We note that, interestingly, this decision came just as Ally’s auto finance president and DriveTime/Carvana supporter Tim Russi resigned from Ally in April 2018, shortly after DriveTime’s losses reportedly surged."

"Starboard believes Mr. Stout’s deep knowledge of the intellectual property industry, his role in the success of NTP, and his extensive legal experience will enable him to provide invaluable oversight to the Board."

"Spruce Point expresses concerns with Lumen and Charter Communications' revenue quality. We observe that the ratio of accounts receivable and net contract assets to LTM revenues is materially above other customers."

"In these instances, the Company balances its fiduciary obligation to policyholders by reducing its management fee, tightening underwriting standards, and consequently slowing the growth of direct written premiums."

"PEN trades in line with more advanced and R&D-intensive medical device companies despite its weak IP, relatively low gross margins (even by the standard of 510(k) companies) and increasingly competitive landscape."

"As CEO, Lance Fritz has only been earning ~83% of a 200% potential annual incentive bonus (only one year above 100%). This is a low earn rate and significantly below the best-in-class railroad CEO average of ~155%"

"GoDaddy has significantly increased its Technology & Developments expenses over the last several years, but has seen revenue growth continue to decelerate, indicating a likely opportunity for cost rationalization."

"Although it wasn't obvious to many at the time, the dislocation in the stock price due to the scandal provided a great buying opportunity. With the passage of time, the strength of AmEx's business proved resilient"

"Our nominees are committed to protecting McDonald’s’ stakeholders from risks stemming from ESG failures and intend to curb current injustices surrounding the wage gap, animal cruelty and environmental degradation."

"Our nominees are committed to protecting McDonald’s’ stakeholders from risks stemming from ESG failures and intend to curb current injustices surrounding the wage gap, animal cruelty and environmental degradation."

"The Board wants to highlight the general uncertainty or the risks around the funding environment to scare shareholders. But if that's the case, why is Veritas comfortable levering the business to around 7x EBITDA?"

"Spruce Point believes that, not only could near-term uncertainty elicit earnings revisions which pressure the stock, but longer-term competitive challenges will prevent the Company from rebounding as bulls expect."

"Arconic is too big for anyone to manage centrally. Decision-making should be driven down to the plant-level with plant managers given more direct P/L responsibility and freed to make more customer-facing decisions"

"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."

"Spruce Point finds that AMR's COO Whitehead has also engaged in undisclosed stock sales contrary to SEC guidelines which mandate that a Form 4 must be filed with two business days following an insider transaction."

"Spruce Point finds that AMR's CAO Nicholson has also engaged in undisclosed stock sales contrary to SEC guidelines which mandate that a Form 4 must be filed with two business days following an insider transaction."

"Rick may have misinterpreted my silence in response to certain comments he made during the tour. Several times during the tour and in the car on the way back to the station, he exclaimed, "They're printing money!""

"Our survey of cardiologists also found that most were already using various types of monitors from a number of different suppliers, likely making it even easier to change the source of these commoditized products."

"We believe CEO Blackford just informed investors that the Company's widely assumed easiest source of growth, increasing share in the existing MCT market, holds at least 20% less potential than previously believed."

"While auditor rotations can be viewed positively, we believe three auditors in six years is excessive in light of the accounting anomalies we have identified related to sales, gross margins, inventories and capex."

"We modeled Peiyou’s respective offline and online enrollments and ASPs through FY2018 Q4. These do not reconcile with TAL’s disclosures and management statements, depending on which of them you accept as accurate."

"We urge you to routinely and systematically audit distributors for compliance with the 70% Rule and the Ten Customer Rule, including by collecting the retail receipts Herbalife is contractually entitled to obtain."

"Based on our view of appropriate revenue growth and operating profit margins, we believe that P&G should be earning closer to $6/share by FY June 2016 – a level more indicative of the company’s true earnings power"

"After a reckless and failed acquisition spree from 2008-2012, Kratos teetered on credit default before divesting a key division to deleverage, and pivoting focus to hype its unmanned systems (aka drones) business."

"In order to generate ~$30 billion of value from the pipeline, we must assume that the Celgene pipeline can generate, on average, 10 blockbuster products in 8 years, compared to 3 blockbusters in the past 15 years."

"Synergy, the company that has made the single largest purchase in the history of Ballard, is essentially owned and controlled by the local government (Yunfu City), the CEO, Ma Dongsheng, and some venture investors"

"To stem the panic, authorities adopted a currency board and a USD peg. While the initial workings of the currency board were basic, the strength of the USD and the simplicity of the currency board made it credible"

"The K27 medium-term plan fails to address the growth potential available to Kao through its Health & Beauty and Cosmetics brands. The lack of ambition makes it look like Kao’s management have an allergy to growth."

"In reality, Samsara’s profitability has been dramatically overstated due to the Company’s questionable accounting policies and assumptions related to its average customer life and connected device life of 5 years."

"Spruce Point questions the value of Saputo’s specialty cheese distribution business, notably the Port Salut variety. We find the identically labeled product at hyper low-cost retailer Aldi for -26% less per pound."

"Given the recently constructed Operating Asset portfolio, located in mature controlled MPCs, Pershing Square believes that capitalization and discount rates should be much lower than for typical real estate assets"

"Disney's EPS performance has significantly underperformed its self-selected “media industry” peers in both "new media" (e.g., Netflix, Alphabet) as well as traditional media (e.g., Comcast, Warner Bros. Discovery)"

"Most concerning is that many of the books the agents are to purchase were written by senior WFG leaders, exacerbating our fears that senior WFG leaders may be using the WFG recruitment engine to enrich themselves."

"A business records search with the California Secretary of State reveals that Xuan Nguyen, one of the highest-ranking members of WFG, and his family control World System Builder (also known as WSB Partners, Inc.)."

"Axon's core Taser product is at best not growing, while margins have been slowly contracting. Meanwhile, its faster growing Software and Sensor segment is experiencing slower growth, along with margin contraction."

"This bolsters our concern that Axon is both recognizing the hardware value at contract inception, and could be overstating its value by obscuring it. Otherwise, Axon is implicitly saying its hardware is worthless."

"During the three bear markets since the firm’s inception, Pershing Square substantially outperformed the S&P 500 due to hedging-related gains and opportunistic investments in high-quality, durable growth companies"

"The CFO is on public record stating that China’s profitability is above its corporate average and it feels good about growth and profitability there. Our on the ground research suggests a markedly different story."

"GoDaddy has significantly increased its Technology & Developments expenses over the last several years, but has seen revenue growth continue to decelerate, indicating a likely opportunity for cost rationalization."

"The third fatal problem with Lasertec's EUV-based inspection tool, in addition to contamination/debris and light source instability/flickering, is pitifully low reliability that leads to low uptime and throughput."

"Spruce Point warns that just in the past week, pest control industry insiders talked about market conditions and offered a range of opinions that we believe are extremely unfavorable for Rollins’ earnings outlook."

"In addition to the Rollins family selling stock, we observe that the CEO adopted a 10b5-1 trading plan to liquidate stock as early as October 2022, coincident with the completion of the Terminix / Rentokil merger."

"The difference is a ~$1.1m per engine increase in the carrying value of Inventory that will be transferred from Leasing Equipment to Inventory, and eventually the same increase in COGS to hit the income statement."