Callouts & quotes from 533+ activist slides

"All I’ve seen are the summary stats...I haven’t seen anything on an individual basis...so yeah, it does worry me that things are not published, for sure...and there are odd things like the papers don’t describe insulin resistance at all anywhere...something very weird going on...their leptin goes massively down despite there not being a huge change in fat mass...something odd there...they haven’t really shown that insulin resistance gets bigger...they don’t report...and I don’t know why."

"LumiraDx and Butterfly Network are two recent SPAC merger targets that are focused on low-cost point of care diagnostic testing (blood/disease testing and ultrasound, respectively). Although they focus on humans as opposed to companion animals, their application areas offer high growth potential. However, despite their business similarity and dramatically higher anticipated growth, they still trade at discounts or small premiums to Heska."

"Isn’t it strange that accounting, industry and business scandals and problems have befallen Lumber Liquidators, Tile Shop and Floor & Decor. Yet, despite many clear and obvious signs to us of Floor & Decor’s revenue misstatements, disclosure omissions, accounting policy changes and leadership associated with prior scandals, its equity value reflects “success” in an otherwise difficult to impossible industry to make money?"

"Despite Heska raving about the Biotech Labs team, we could find only six employees on LinkedIn, and only two of those have a recent, relevant scientific background. When we called the corporate phone number, only six employees are listed in the directory, and that excludes two with LinkedIn profiles claiming current employment. Biotech’s Twitter account has been suspended for violating Twitter Rules."

"The Street believes that VRNT shares trade at a ~35% discount to SaaS peers. However, we estimate that VRNT trades just above the industry median, despite its chronically low organic growth, destructive acquisitions, and inability to generate cash flow growth despite frequent M&A – a stark contrast to the many fast-growing and highly-profitable true cloud businesses which occupy the space."

"We cannot reconcile REZI's acquired revenue from 2022 during the critical acquisition of First Alert. REZI also closed three other small acquisitions during this period and generally reported the revenue contribution from acquisitions to total and segment revenue. REZI implemented multiple restructuring programs in Q4'22 despite First Alert performing ahead of plan."

"Ex-employees elaborated on the lack of further opportunity in cell line development: already ran out of customers; already killed off the segment despite what they promote to investors; was always "a hard sell" as couldn't show their tool is any better than current methods; no incentive or ROI for customers to use BLI for cell line development."

"PGNY often boasts that its network has the best clinics. However, we found that two clinics in the PGNY network have received FDA warning letters, four clinics that failed to report their outcomes data to the CDC for 2019, and nine clinics that were listed as unaccredited in the CDC's 2019 report despite having been in operation for years."

"Cintas repeatedly claimed in 2019 that capex, acquisitions, dividends and lastly share repurchase were its capital priorities. Yet, with capex stated as the #1 priority, it cut its capex guidance three times, and share repurchases soared to $1bn – making repurchases clearly the largest capital priority despite management saying otherwise."

"Despite Heska’s efforts to paint a picture of a transformed company, we believe the evidence (including SEC filings, supplier contracts, legal discovery, reported financials, R&D spend, capital investment, business practices, and actual product shipping in the market) indicates that Heska’s business has changed very little, if at all."

"We estimate that, at best, EPS would have been flat or modestly down without Cintas’ crafty financial and accounting gamesmanship that involved lowering its tax rate, redirecting capital towards share repurchases despite repeatedly saying it was the lowest capital priority, and lowering amortization expense for G&K service contracts."

"A paper presented in January 2020 at NANS, the key annual neuromodulation meeting, indicated explant rates of 22% within 2 years and 33% within 4 years for Nevro’s product “despite repeated reprogramming sessions in the effort to achieve therapeutic optimization” – dwarfing the 1.2-3.7% rates Nevro’s own “paper” claimed by ~10-30x."

"Over the last five years, despite having a significantly profitable core Digital Telephony business, DSP appears to have managed itself to a slight operating loss (and slight EBITDA gain) almost every year, regardless of the Company's revenue, by making substantial investments in R&D and SG&A that have shown little if any progress."

"Despite FND getting ensnared in an industry-wide scandal that alleged products sold were falsely labeled as compliant with formaldehyde emissions standards and settling a lawsuit for $16 million, management was rewarded with merit-based salary increases and the CEO received a discretionary bonus for "exceptional" performance."

"We find it remarkable that Samsara has continued to trade at a premium valuation despite embodying all the attributes that have traditionally resulted in valuation multiple discounts: SMB focus, hardware business, and communications focus. Thus, we expect Samsara’s eventual multiple compression will be particularly severe."

"Coca-Cola is an iconic world-wide American brand that also depends on its “trade secret” formula and brand equity. To put WD-40’s extreme valuation in perspective, we compare the two. Not only does Coca-Cola have broader diversification, but also significantly higher margins and growth potential despite being 88x larger."

"Fast forward to TFS’s FY 2010 results and any mention of the outstanding institutional investor’s payment is non-existent. However, the breakdown of receivables shows a massive growth in amounts outstanding from institutional investors despite management’s prior assertion that future BC sales would be on a cash basis!"

"Heska’s market cap grew 218% from the close of the scil transaction through the end of 2020. However, despite scil adding a relatively large chunk of negative-growth, ~30% gross margin revenue and Heska consensus 2021E EBITDA estimates not changing, the implied value of scil and CVM grew 282% over just eight months."

"Comparing the Company's supplier disclosure between its 2019 and 2020 10-K Annual Report, Heska eliminated references to four external suppliers despite the fact that either current product sheets pre-date the change or the products remain the same, meaning no actual change in supplier relationship has occurred."

"GINGKO BIOWORKS executive #1 repeatedly stated “the jury is still out” despite ~24 months of partnership; still just “a concept on paper” that hasn’t been operationalized; unclear if machine is built for the right set of applications; “hard to know” how it compares to other ways of screening; “just so early.”"

"Spruce Point is concerned that long-time fundamental growth owners have either given up or rotated out of Kratos, and have not returned despite the renewed optimism for Unmanned Systems. Instead, we find the disturbing reality that Kratos’ share price has been driven by rules-based index and ETF buying"

"Despite our extensive history and unwavering commitment to environmental and social causes, we have no doubt that any party lacking knowledge of the facts, acting superficially, solely in its self-interest, or in complete bad faith, could easily argue that advocating for BP to increase its oil and gas"

"The GTO segment shows minimal capex spending despite the inclusion of Itiviti which spent 15% of sales on capex in 2020, and the large build-out of the wealth management platform for UBS which we believe at least $1.0 billion has been spent, and which we believe should be reflected in the GTO segment."

"Despite having created little to no value, in our opinion, as a public company (including missing financial targets and spending $110m on a revenue-less venture SecurityMatters with no clear evidence that it succeeded), Forescout insiders are in line for a hefty payday – cashing out nearly $100m."

"Despite the seemingly sound logic of single embryo transfer, research suggests that PGNY’s claims that this practice will ensure the reduced incidence (and, most importantly, resultant costs) of pre-term births are questionable, or at least provide an incomplete picture of the aggregate outcomes."

"DuPont management has demonstrated that it disagrees: Investments(1) as a percentage of sales into growth businesses have been reduced more than investments into mature businesses (Coatings and Performance Chemicals), despite management's claims of increasing investments into growth businesses(2)"

"Spruce Point believes BR has also experienced operating expense bloat in the past few years that will amplify the downside risks. We observe that its SG&A margin has creeped back to levels not seen since the 2014-2016 period. This is even despite efforts to rationalize its real estate footprint."

"Despite adding $4.7 billion of revenue over the past ten years, Skechers' General & Administrative expense as a percent of revenue has barely budged. Furthermore, often blamed supply chain expenses don't seem to be a major driver. We view this as a colossal example of poor financial management."

"Off Grid's history dates to 2000, and it assumed its name in 2010. Its website hasn't been updated since 2019 despite being acquired by Generac in Sept 2021. Despite this long operating history, its largest customer appears to be a related-party located right next door that sells its products."

"With the resignation of the Fortress Directors, the tone of management regarding real estate has changed FROM openly supportive of unlocking value for shareholders TO expressing a desire to own it - this is despite a substantial increase in healthcare real estate values over the past two years"

"Heska paid approximately 1.4x LTM revenues, in aggregate, for these six companies. We find it shocking to note that the market is currently valuing these revenues, which comprise well over one-third of Heska’s LTM revenues, at 9x only 1 to 1.5 years later despite questionable recent results."

"Share price underperformance has occurred despite no significant change in the operational outlook for ArborGen or Tenon leading us to believe that the primary cause for the underperformance was the mis-management of both the ArborGen IPO and shareholder expectations with respect to Tenon."

"According to Space News, the Northrop Grumman / Orbital ATK deal will put Aerojet at a competitive disadvantage for competing on cost for large solid rockets. The sole rationale for keeping Aerojet in the business could be to prevent a monopoly, despite its challenges to compete on price."

"Arora reported potential income tax evasion by WSP entities in India through five emails sent under the Whistleblower mechanism from September 2018 to January 2019. Despite assurances of protection against retaliation in the company's code of conduct, he was dismissed on June 11, 2019."

"Instrument is immature and "kind of like a beta version" despite being launched in 2016; using it is "a major headache," "time consuming," and "tedious"; machine ruins cells in about 1 out of every 5 runs; unusable by other groups at AbbVie due lack of assays and other limitations."

"This has resulted in executive compensation at AOL that is approximately 3.4 times the median compensation of an appropriate peer group that fits within the guidelines recommended by both ISS and Glass Lewis, despite poor absolute and relative stock price and financial performance."

"In 1994, season passes to Six Flags Great Adventure in Jackson, New Jersey averaged $75... Fast forward 25 years to 2019, and we were still charging an average of only $75 for our season pass. Despite the fact that we have invested hundreds of millions of dollars in our parks..."

"However, despite having arguably the best positioned portfolio in the consumer packaged goods industry, Nestlé shares have significantly underperformed most of their US and European consumer staples peers on a three year, five year, and ten year total shareholder return basis."

"Despite their late start, COVID, growing trade wars, and the massive disadvantage of competing against some of the world's most dominant companies, the emerging Chinese WFE players have experienced explosive growth, making it no longer reasonable to question their credibility."

"TransMedics has – and will never have – any opportunity in kidney as 1) only 40% of kidneys are pumped due to cost, despite the pumps being around for decades; 2) LifePort has 85% market share with its kidney pump; and 3) their pump is a third of TransMedics OCS cost at $30K."

"Despite a recent Board overhaul, we believe the fundamental dynamic remains unchanged: there is no effective counterweight to the Greenbergs, who have consistently demonstrated a disregard for adhering to best practices in public company and corporate governance practices."

"The sell side values VRNT on a P/E basis against Non-GAAP EPS. This approach fails to take into account Verint's poor organic growth, the widening disparity between GAAP EPS and (low-quality) Non-GAAP EPS, and the Company's failure to grow cash flow despite a flood of M&A."

"AMR purchased 84% of coal sold in its Trading and Logistics Segment from Alpha in 2017. The intercompany eliminations between Contura and Alpha show revenues equaling costs. Despite this, Contura/AMR reported $89.3 million of EBITDA from the Trading and Logistics segment."

"He indicated little interest in prescribing the drug unless a patient pushes for it, and that despite the one Vykat start form submitted, physicians may "try it once or twice" and quickly move on or prescribe generic diazoxide suspension off-label versus chasing insurers."

"Despite a massive revenue decline of $4.8 billion from 2007 to 2012, total G&A expense has actually increased, causing G&A expense as a percentage of revenue to increase from 4.2% to 6.3% and Adjusted EBITDA margins to decline from 5.3% to 3.1% over the same time period."

"This suggests that Aegon's senior leadership is not only aware of Guillermo's ongoing involvement with the organization, despite his past conduct, but also allows him to hold a role of such significance that he is permitted to present openly at WFG's annual convention."

"Despite the significantly higher fees of FleetCor’s “Clean Advantage” scheme vs. WEX’s program and the contractual obligation of FleetCor to make their customers carbon neutral, the greatest accomplishment promoted on Clean Advantage’s website is planting 5,000 trees."

"We question Christine Sacco’s attention to detail and oversight of Prestige Brand’s financial statements and controls. PBH lists Ms. Sacco as a CPA despite her license being “inactive.” This inconsistency looks to show a lack of attention to detail by PBH and its CFO."

"Meanwhile, while DXCM share price appreciation was driven largely by multiple expansion through H1 FY18, the stock has been range-bound since the middle of FY18 despite continued revenue beats, and the multiple has contracted to some extent on recent sales growth."

"We are short Innodata, Inc. (NASDAQ: INOD) because despite management’s pumping that it is “delivering the promise of AI to many of the world’s most prestigious companies,” it is a deteriorating, manual data-entry business driven by offshore labor, not innovation."

"Despite this clear trajectory towards exclusive brands, it is noteworthy that John Grijalva, the current representative for three of BOOT's nonexclusive brands, is navigating against the tide. His relationships have not diminished; instead, they have increased."

"Insiders continue to be net sellers of Mercury shares despite having been given the chance to prove Spruce Point wrong: rather than demonstrate confidence in the business by committing more personal capital at depressed prices, they have continued to sell out."

"Intuit is one of the most US-centric software companies. We believe Intuit management often talks up the 50% international customer base of Mailchimp to suggest that it will catalyze international success despite years of struggles and little product synergy."

"Phillips 66 has been pursuing a strategy for many years that emphasizes and grows midstream assets alongside its refining business, despite evidence that this structure isn’t delivering value for shareholders relative to the company’s more streamlined peers."

"Phillips 66 has been pursuing a strategy for many years that emphasizes and grows midstream assets alongside its refining business, despite evidence that this structure isn’t delivering value for shareholders relative to the company’s more streamlined peers."

"Despite owning 65% and controlling the majority of DTA's operating capacity, AMR claims it doesn't control the asset because "two reps must be present for business to be conducted and unanimous approval of both parities is needed for decisions to be taken"."

"Despite its 100-year head start in consumer entertainment, iconic IP, superior scale and diversification, Disney has underperformed and disappointed its investors by nearly every objective measure of business and stock price performance over the past decade"

"Despite its 100-year head start in consumer entertainment, iconic IP, superior scale and diversification, Disney has underperformed and disappointed its investors by nearly every objective measure of business and stock price performance over the past decade"

"Scil generated 31% gross margins in 2018 and 2019, indicative of the Company's distribution business model. Of note, the Company was barely profitable on an operating basis despite scil management receiving Wilson's praise for their operational excellence."

"This is despite management alluding to a potential buyer on the Q1 2023 earnings call, with CEO Albright claiming that they may “have a buyer group interested” in response to an analyst’s question on CTO’s exposure to Fidelity, General Dynamics, and Ford."