Article: Short-Seller Spruce Point Targets Leidos Holdings

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Short-Seller Spruce Point Targets Leidos Holdings

Lou Whiteman, 16 February 2021

Spruce Point Capital Management, an investment firm best known for its short-selling recommendations, on Tuesday warned that it sees mismanagement and potential fraud in Leidos Holdings (NYSE:LDOS) and forecast up to 60% downside risk to the company’s shares. Continue reading “Article: Short-Seller Spruce Point Targets Leidos Holdings”

Article: Spruce Point Capital Management Releases A Strong Sell Research Opinion On Prestige Consumer Healthcare Inc. (NYSE: PBH)

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Spruce Point Capital Management Releases A Strong Sell Research Opinion On Prestige Consumer Healthcare Inc. (NYSE: PBH)

PRNewswire, 30 June 2020

Report entitled “Time To Nix Management” outlines how Prestige Consumer Healthcare Inc. (“PBH”, “Prestige” or “the Company”) faces 40%-60% downside risk to approximately $15 to $23 per share. The full contents of the report can be reviewed at www.sprucepointcap.com. Continue reading “Article: Spruce Point Capital Management Releases A Strong Sell Research Opinion On Prestige Consumer Healthcare Inc. (NYSE: PBH)”

Article: Meet the New York investor who’s making all the right calls in shorting Canadian stocks

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Meet the New York investor who’s making all the right calls in shorting Canadian stocks

Victor Ferreira, 19 November 2018

Ben Axler is used to being alone on his stock calls. In August, the New-York-based short seller released a report criticizing Canadian space tech juggernaut Maxar Technologies Ltd., raising questions about some of its accounting practices and warning that the company’s shares could lose more than half their value. Continue reading “Article: Meet the New York investor who’s making all the right calls in shorting Canadian stocks”

Article: Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk

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Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk

Ben Axler, 31 October 2018

Spruce Point believes that Dollarama (TSX: DOL / OTC: OTC:DLMAF or “the Company”) is now a broken growth story that will fail to hit its lofty long-term growth targets, placing its industry-leading margins and valuation multiple at risk of material contraction. As a result, we see ~40% downside risk to C$24.60 per share.

Rising product prices, progressively saturated markets due to heightened competition, and increasingly stale stores out of touch with Millennials have caused per-store traffic to contract for several years as consumers realize it is no longer a true dollar store. The Company is on pace for its lowest new store count in years despite management’s continued efforts to expand the store base. Dollarama’s gross and EBITDA margins are inexplicably high relative to peers, and seem too good to be true. Management also claims to have never closed a store for performance reasons. We expect growth and profitability expectations to fall back to reasonable levels as a number of fundamental factors – tougher competition, wage increases, FX, and logistics costs, among others – pressure the business going forward.
Continue reading “Article: Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk”

Article: Intertain Group Limited Statement on Spruce Point Capital Report

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Intertain Group Limited Statement on Spruce Point Capital Report

Marketwired, 18 December 2015

The Intertain Group Limited (“Intertain” or the “Company”) (IT.TO) today issued a statement to address what it considers to be a misleading and self-serving report that was published on December 17, 2015 by a self-identified short-seller of the Company’s common shares, Spruce Point Capital Management LLC (the “Fund”). Intertain stands behind the integrity of the Company’s public disclosures.

The Fund’s report reveals that the Fund and its affiliates had built a short position in Intertain’s common shares prior to the publication of the Fund’s December 17, 2015 report and therefore stand to realize significant gains in the event that the price of the Company’s stock declines.

Intertain has established a committee of non-management directors to closely review the allegations contained within the Fund’s report. Following that review, the Company will take any and all actions necessary and appropriate to protect the interests of the Company and its shareholders.
Continue reading “Article: Intertain Group Limited Statement on Spruce Point Capital Report”