Sunnova Energy International Inc.

Sunnova Energy International (“NOVA” or “the Company”) is a residential solar financing business caught in the rising tide of solar energy. In reality, Sunnova is a specialty finance company with undifferentiated offerings that operates in a competitive industry facing secular … Continue reading

GFL Environmental, Inc.

After conducting a forensic financial and accounting review (inc. multiple former employees interviews), Spruce Point believes shares of GFL Environmental (TSX/NYSE: GFL), a cash degenerative North American roll-up of environmental service companies, are worthless. We find GFL’s CEO Patrick Dovigi … Continue reading

Prestige Consumer Healthcare, Inc.

After conducting in-depth channel checks and a rigorous forensic review, Spruce Point has significant concerns about Prestige Consumer Healthcare (NYSE: PBH, “Prestige Brands”, or “the Company”), a roll-up of orphaned brand named, over-the-counter (OTC) healthcare products. Our research shows Prestige … Continue reading

Forescout Technologies Inc.

On Feb 6, 2020 Forescout Technologies, Inc. (“FSCT” or “the Company”) announced its purchase by Advent International for $33/share in a $1.8bn deal. We believe investors ascribe too high a probability that it is a done deal. Upon conducting a … Continue reading

WD-40 Company (Update 1)

WD-40’s recent Q2 2020 earnings support our original thesis and management refuted none of our concerns. We remain confident the business is under pressure, with sales and earnings declining even before the full effect of COVID-19. We believe the problems … Continue reading

Align Technology, Inc.

By now, investors in Align Technology, Inc. (“ALGN” or “the Company”) are used to hearing that competitors are, for the first time, beginning to penetrate the clear aligner space. The bullish consensus: dental equipment competitors can coexist with Align, but … Continue reading

WD-40 Company

Spruce Point believes that WD-40 (Nasdaq: WDFC or “the Company”) is widely misunderstood and believed to be defensive, but in reality, is facing both long and short-term secular pressures. With the Company recently upsizing and drawing down 100% of its … Continue reading

Amcor Plc

Amcor plc (“AMCR” or “the Company”) is a roll-up, and newly created S&P 500 company, formed through a stock-for-stock merger between Amcor (Australia) and Bemis (U.S.). Its shares trade on both on the NYSE: AMCR and ASX: AMC. As two … Continue reading

Dropbox, Inc.

Dropboxs (“DBX” or “the Company”) was once seen – and is still seen by most investors – as the quintessential Silicon Valley software unicorn: a fast-growing, highly cash-generative SaaS company with a sticky customer base and a long runway for … Continue reading

LHC Group, Inc.

LHC Group (“LHCG” or “the Company”) is a roll-up of post-acute home health centers which, in Apr 2018, completed a transformative merger of equals with fellow home health services provider Almost Family (“AFAM”). The merger was pitched to investors as … Continue reading

Plug Power Inc.

Plug Power (“PLUG” or “the Company”) is a manufacturer of hydrogen fuel cell systems with a ~20 year history of setting unrealistic goals and resorting to onerous financing, endless equity raises, and creative accounting to support unsustainable growth. It appears … Continue reading

Canadian Tire Corporation, Ltd.

Spruce Point has significant concerns about Canadian Tire (TSE: CTC or “the Company”), one of the largest retailers in Canada. Canadian Tire is a challenged brick-and-mortar retailer perceived as a dependable mid-single-digit grower on an increasingly precarious foundation of unsustainable … Continue reading

Cintas Corp.

Based on a new public FOIA and our research, we believe Cintas’ Fire Protection Services business has committed fraud and is causing a public safety hazard by having workers conduct fire and safety inspections without proper licenses or permits, and … Continue reading

Hill-Rom Holdings, Inc.

Hill-Rom (“HRC” or “the Company”) is a low-quality medical equipment roll-up which is rapidly approaching the end of its current growth cycle. HRC is a jumble of hospital furniture and medical device businesses assembled in part through $3.5B-worth of hasty … Continue reading

Monolithic Power Systems, Inc.

Spruce Point has significant concerns about Monolithic Power Systems (Nasdaq: MPWR), a designer and manufacturer of power management solutions. Despite being headquartered and publicly listed in the U.S., MPWR operates largely as a foreign company with ~90% of its production, … Continue reading

Premier, Inc.

Premier, Inc. (“PINC” or “the Company”) is a group purchasing organization (GPO) which, due to a unique pre-IPO restructuring agreement, is temporarily generating twice the earnings which its business model can sustain organically. In exchange for rights to Premier equity, … Continue reading

Church & Dwight Co., Inc.

Spruce Point has significant concerns about Church & Dwight (NYSE: CHD), an S&P 500 company, and roll-up acquiror of personal care and consumer products. Under its older leadership, management pursued a conservative strategy to leverage its core Arm & Hammer … Continue reading

Penumbra, Inc.

Penumbra, Inc. (“PEN” or “the Company”) is a one-trick-pony surgical instrument company which, in our opinion, produces a low-tech and undifferentiated product in an increasingly competitive space. Penumbra was first to market with an aspiration catheter (“AC”) FDA-approved to treat … Continue reading

Mettler-Toledo International, Inc.

Spruce Point has significant concerns about Mettler-Toledo. Since CEO Olivier Filliol took over in 2008, Mettler’s ability to never miss quarterly Wall St earnings estimates raises doubts about the quality of its financial statements. Run by secretive management in Switzerland, … Continue reading

Axon Enterprises, Inc.

Axon Enterprises (Nasdaq: AAXN), the maker of the Taser stun gun, has been positioning itself more as SaaS provider of analytics through body cams to law enforcement agencies. With a history of SEC inquires, delinquent filings, and material weaknesses, we … Continue reading

Verint Systems, Inc.

Verint Systems Inc. (VRNT or “the Company”) is a call center software provider which has fallen far behind the industry’s evolving technological standards and which is making up for slow growth with aggressive M&A and dubious accounting. While Verint reported … Continue reading

Kornit Digital Ltd. (Update 1)

Spruce Point believes Kornit Digital (“the Company” or KRNT) saw 2018 revenues, and particularly cash flow, driven entirely by Amazon’s expansion of its Merch program, which are likely to taper based on a slow-down of program growth, and would leave … Continue reading

Kornit Digital Ltd.

Spruce Point believes Kornit Digital (“the Company” or KRNT) saw 2018 revenues, and particularly cash flow, driven entirely by Amazon’s expansion of its Merch program, which are likely to taper based on a slow-down of program growth, and would leave … Continue reading

PetIQ

PetIQ, Inc. (“PetIQ,” “PETQ,” or “the Company”), a recent JOBS Act IPO, is the product of an acquisition of an unattractive veterinary services business by a shady veterinary drug distribution business. The distribution business, built on the ethically-nebulous practice of … Continue reading

Aerojet Rocketdyne Holdings, Inc.

In our opinion, Aerojet Rocketdyne (NYSE: AJRD) – formerly Gencorp (NYSE: GY) – is facing fundamental pressures, masked by complicated and aggressive accounting, which gives investors a potentially misleading impression of stability and growth. While holding no conference calls, and … Continue reading

Dexcom, Inc.

Dexcom, Inc. (“Dexcom,” “DXCM,” or “the Company”) manufactures continuous glucose monitoring systems (“CGMs”) for diabetic patients. It competes with Abbott’s FreeStyle Libre in the stand-alone CGM space. Dexcom’s G-Series has until now been considered the gold standard, with the Libre … Continue reading

iROBOT CORP (Update 5)

Spruce Point has discovered new evidence that SharkNinja (“Shark”) – a major competitor of iRobot (IRBT or “the Company”) – is primed to release a new, high-end, smart, and home connected robot vacuum cleaner (RVC) priced at a 25% discount … Continue reading

Carvana Co. (Update)

Spruce Point believes that the recent terrible financial results reported by Carvana continue to validate our concern about its uneconomic business model that isn’t scaling, is capital destructive, and favors insider enrichment over shareholder wealth creation. Our revised price target … Continue reading

Amdocs, Ltd.

Amdocs (DOX or “the Company”) is a cryptic entity based in the tax-dodge haven of Guernsey that provides revenue management, BPO and IT services primarily to telecoms. Industry forces have dragged on sales growth to the point that Amdocs appears … Continue reading

XPO Logistics Inc.

Spruce Point has been following XPO Logistics (NYSE: XPO) for years, a transportation and logistics roll-up founded by Bradley Jacobs, co-founder of United Rentals (URI) which collapsed in an accounting scandal during his leadership. Based on our forensic investigation, we … Continue reading

iROBOT CORP (Update 4)

Spruce Point has released a number of reports on iRobot (IRBT or “the Company”) highlighting impending competitive pressures and defensive distributor acquisitions designed to forestall revenue growth contraction and margin compression. We have evidence that the competitive forces which we … Continue reading

Dollarama Inc.

Dollarama (DOL or “the Company”) is a dollar store which, following a series of price hikes over the course of several years, is no longer a true “dollar store.” As a result, DOL has fallen out of favor with value-oriented … Continue reading

Mercury Systems Inc. (Update)

Spruce Point finds evidence to suggest that Mercury Systems (Nasdaq: MRCY) could be one of the companies affected by the alleged Super Micro Computer, Inc. (Supermicro) hack, and can demonstrate recent actions taken by management to obscure the relationship. We … Continue reading

Henry Schein, Inc.

Spruce Point has a Strong Buy opinion on Henry Schein (HSIC) and sees 30% to 50% upside potential We believe the upcoming spin-off of HSIC’s animal health distribution business will unlock substantial value for shareholders. Currently, investors are somewhat negative … Continue reading

Weis Markets Inc.

Poorly positioned regional supermarket in the hypercompetitive Northeast region that is a step behind in the megatrends pressuring the supermarket industry. Despite cutting prices, Weis is still not competitive across a basket of staple food products at price points 15% … Continue reading

Maxar Technologies Ltd.

Strained by the levered acquisition of Space Systems Loral in 2012 at the cycle peak, MacDonald Dettwiler’s (MDA) acquisition of DigitalGlobe (DGI) in 2017 was done out of necessity to cover-up growing accounting and financial strains. Rebranded Maxar Technologies (MAXR), … Continue reading

2U, Inc.

2U, Inc. is a money-losing education technology provider that partners with universities to market and manage online graduate degree and short course programs. Its one size fits all model is being disrupted by fee-for-service players with lower take-rates. Our Freedom … Continue reading

Momo, Inc.

Spruce Point and its China-based investigator has spent months doing primary forensic research into Momo, Inc. (Nasdaq: MOMO or “the Company”) and sees $23 to $32/sh, 30% to 50% downside risk. Momo’s investor base is compromised of two distinct cohorts, … Continue reading

Healthcare Trust of America, Inc.

HTA’s Chief Executive Officer Has A History of Failure And Non-Shareholder Friendly Outcomes: At Spruce Point, we like to follow executives who have destroyed shareholder value in the past as this pattern often repeats itself. HTA’s CEO and Chairman Scott … Continue reading

U.S. Concrete Inc.

Previous Failure: U.S. Concrete filed for bankruptcy after the financial crisis: The industry is difficult given the commodity nature of the products, intense competition, and need to be close to the customer because shipping costs are material Becoming More Dependent … Continue reading

Kratos Defense & Security Solutions, Inc. Update

1. Adjusted for a change in revenue accounting principle, Kratos Q1 revenues missed expectations by 6% 2. Kratos operating income performance was aided by unexplained decline in depreciation (notably in its promoted Unmanned Systems (drone) segment), despite a material ramp in capex … Continue reading

Mercury Systems Inc.

Mercury Systems Inc. (NASDAQ: MRCY) provides sensor and safety critical mission processing subsystems for various defense and intelligence programs in the United States. Mercury appears to be caught in the perfect storm of slowing growth, rising costs and debt. There … Continue reading

Globant SA

Globant SA (NYSE / LUX: GLOB) is a poorly organized roll-up of digital IT outsourcing companies. GLOB receives the highest valuation in its sector by convincing investors it achieves consistent 20% p.a. organic sales growth. However, our forensic analysis disproves … Continue reading

Kratos Defense & Security Solutions, Inc.

Terrible Business Through Multiple Reinventions Now Hyping Drones: Originally a dotcom darling named Wireless Facilities that IPO’ed in 1999 with hopes of being the leading provider of outsourced services for wireless networks, the Company collapsed and later took a large … Continue reading

Realty Income Corp.

The Allure of Rising Magic Dividends: Realty Income (“O Realty” or “the Company”) promotes itself as “The Monthly Dividend Company®” and preaches“The Magic of Rising Dividends” – it even goes so far as to market itself differently to retail investors … Continue reading

Ballard Power Systems

Ballard’s stock had a tremendous run in 2017 (+167%) based on strong revenue growth, margin improvement and a perception that the commercialization of fuel cells is on the horizon (i.e., “hype”).  This improvement occurred despite Ballard’s portfolio largely consisting of … Continue reading

Matthews International Corp.

Matthews Int’l (Nasdaq: MATW) is comprised of three unrelated businesses in the death care (“Memorialization”), branding and packaging services (“SGK Brand Solutions”), and Industrial Technologies. In our view, each business is mediocre and struggling from a variety of issues, resulting … Continue reading

Echo Global Logistics (Update)

Echo Global Logistics (“ECHO” or “the Company”) was founded in 2005 to roll-up the transportation logistics / brokerage sector. Our Initial Concerns About ECHO From September 2016 Proved Prescient: In our initial report entitled “Logistical Nightmare”, we warned about ECHO’s terrible … Continue reading

AeroVironment Inc.

AeroVironment (Nasdaq: AVAV) is a defense contractor that sells small unmanned aircraft systems (“UAS”) –colloquially known as drones –to the US and allied governments (~90% of its business) and also operates an unrelated business tied to electric-vehicle charging (“EES” ~10% … Continue reading

Tootsie Roll Industries

Tootsie Roll Industries (NYSE: TR) is a producer and marketer of candies and lollipops under the brands Tootsie Roll, Blow Pops, Junior Mints, Andes Candies and others. For years, the bull case has assumed Tootsie’s brands were iconic and “hope” … Continue reading

Envirostar Inc.

Envirostar (NYSE/MKT: EVI), formerly known as DRYCLEAN USA, is a distributor of commercial and industrial laundry and dry cleaning equipment.  With its shares up >600% since 2016, it has become one of the most overvalued microcaps in the stock market … Continue reading

iROBOT CORP (Update 3)

Shark entered the robotic vacuum market as we predicted in June, a major negative! We believe SharkNinja strives to be the #1 or #2 leader in markets it enters. Based on its track record in traditional vacuums and blenders, we … Continue reading

TSO3 Inc.

Spruce Point is pleased to release its report on TSO3 Inc. (TSX: TOS and OTC: TSTIF) TSO3 Is Just Another Canadian Healthcare Promotion:  The Canadian markets are littered with recent examples of healthcare stocks in need of urgent medical attention, wounded … Continue reading

iROBOT CORP (Update 2)

Spruce Point is pleased to release its updated report on iRobot Corp (Nasdaq: IRBT) New research into iRobot’s recent distributor acquisitions further calls into question the reliability and accuracy of the Company’s financial guidance. If iRobot cannot give further clarity, … Continue reading

Dorman Products Inc.

Dorman Products (Nasdaq: DORM) is an aftermarket auto parts distributor stuck between a rock and a hard place as it sells both through Amazon, which is seeking to grow further into online auto parts distribution, and through the biggest brick … Continue reading

Gentex Corp.

Gentex (Nasdaq: GNTX) is a supplier of dimmable mirrors for the auto and airline industry. Its products are commoditized and require nothing more than plastic moldings, mirrors, chemicals, printed circuit boards, and other inputs such as compasses. Its financials suggest … Continue reading

iROBOT CORP (Update)

Spruce Point is pleased to release its updated report on iRobot Corp (Nasdaq: IRBT) With iRobot’s share price up 300% since 2016, investors are cheering the re-acceleration of sales and earnings growth following years of disappointment, and ascribing a peak … Continue reading

Radiant Logistics Inc.

RADIANT LOGISTICS INC. (“RLGT” or “the Company”) is a company that specializes in transporting unique or difficult shipments. Radiant’s CEO Bohn Crain and first General Counsel Cohen were executives at Stonepath Group (AMEX: SRG / OTCBB SGRZ), whichcrumbled when it … Continue reading

Wix.com Ltd.

WIX.com (Nasdaq: WIX or “the Company) is an Israeli based technology service provider offering a free website solution that depends on upselling customers on additional features. With WIX’s share price up approximately 300% in the last twelve months, we believe … Continue reading

PTC Inc.

PTC’s Conversion Story From Perpetual Licenses To Subscription Model Is Late To The Game, And An Excuse For Management To Explain Away Poor Results And Deteriorating Economics. Its Conversion Uses Gimmicks And A Questionable Value Proposition To Compel Users To … Continue reading

CECO Environmental Corp.

Spruce Point is short CECO Environmental (Nasdaq: CECE, “CECO” or “the Company”), a poorly constructed roll-up serving the environmental, energy, fluid handling and filtration industrial segments. Based on our forensic financial analysis, insider behavior, and anticipated changes in the regulatory … Continue reading

MGP Ingredients, Inc.

MGP Ingredients (“MGPI” or “the Company”) Is A Commodity Ingredient and Alcohol Producer Now Being Spun As A Sexy Transformation Story Into A Premium Producer of Branded Whiskey and Bourbon. MGPI is a simple story to understand. It operates two … Continue reading

The Ultimate Software Group, Inc.

Our interest in Ultimate Software (“ULTI” or “the Company”) was initially peaked when a little-known firm called Soapbox Research published a skeptical report highlighting aggressive software development cost capitalization, potential revenue exaggeration, bloated stock compensation expense, and corporate governance concerns. … Continue reading

Burlington Stores, Inc.

Burlington (“BURL” or “the Company”) Is An Old School Retailer Now Being Spun As A Sexy New Growth Story Amidst An Intensifying and Ultra Competitive Retailing Environment. Burlington Stores (formerly Burlington Coat Factory) is an “off-price” discount retailer based in … Continue reading

Echo Global Logistics

Echo Global Logistics (“ECHO” or “the Company”) was founded in 2005 to roll-up the transportation logistics / brokerage sector. Founded by the same people behind Groupon, and another public company noted originally by Barron’s in 2007, Echo has yet to be … Continue reading

AECOM

AECOM (“ACM” or “the Company”) is a global engineering and construction firm based in Los Angeles, and is an enormous roll-up that came public in 2007. Bowing to pressure from an activist to maximize shareholder value, URS Corp (URS) sold … Continue reading

Sabre Corp.

Sabre Corp. (Nasdaq: SABR) is a travel tech company with a core business of operating a Global Distribution System (“GDS”), a platform that facilitates travel by bringing together content such as inventory, prices, and availability from a broad array of … Continue reading

Planet Fitness, Inc.

Questionable Business Strategy with Unachievable Revenue Goals: The fitness industry is intensely competitive, subjecting Planet to the whim of changing consumer preferences (yoga, boot camp, barre burn, adventure courses), potential technology disruption from wearables, and rife with examples of chains … Continue reading

Tower Semiconductor Ltd.

In our opinion, Tower is a collection of old semi foundries cobbled together from acquisitions, which produce significantly below industry average GAAP gross margins (from 2012-2014 Tower 9% vs. 23% peer average). Having gone through numerous financial restructurings in the … Continue reading

The Intertain Group Ltd.

Formed from Canadian shell companies, Intertain has completed four acquisitions, each of which has gotten larger and fed Intertain’s ‘growth at any cost’ mentality which is likely to end in disaster. Intertain’s initial transaction was with Amaya Inc (a 2.7% … Continue reading

IRSA – Inversiones y Representaciones S.A.

Spruce Point is pleased to release its latest report on IRSA Inversiones y Representaciones S.A.(NYSE: IRS), Cresud S.A.C.I.F. y A. (Nasdaq: CRESY), and IDB Development (Tel Aviv: IDBD). IRSA is a Latin American real estate company. IRSA recently invested $300m+ … Continue reading

CSTE LTD.

Since Spruce Point’s initial report on Caesarstone (Nasdaq: CSTE or “the Company”), which highlighted many fundamental issues facing the Company, along with potential accounting irregularities. In our opinion, many of the open questions remain inadequately addressed, or completely ignored, by … Continue reading

CSTE LTD.

Spruce Point is pleased to release its latest report on CAESARSTONE SDOT-YAM LTD. (NASDAQ: CSTE). Caesarstone’s (CSTE) price recently corrected after Q2’15 earnings beat Wall St. estimates, but it cut its sales guidance from $515-$525m to $495-$505m, while maintaining its … Continue reading

NCR CORP.

Spruce Point is pleased to an updated report on NCR Corp.(NYSE: NCR). In our follow-up report, we will profile a blatant example of poor judgment and capital allocation to support our opinion that NCR’s shareholders should demand immediate change at … Continue reading

GREIF INC.

Spruce Point is pleased to release its latest report on GREIF INC (NYSE: GEF/GEF.B). Greif (GEF) is in the business of industrial packaging products and services. Its businesses appear largely commoditized, are capex intensive, and under severe pressure from FX … Continue reading

AMETEK INC.

Spruce Point is pleased to release its latest report on AMETEK Corp (NYSE: AME). With Limited Organic Growth, Ametek is Under Pressure as its Strategy Appears to be Hitting a Brick Wall. It Underinvests in R&D and Buys What it … Continue reading

irobot

iROBOT CORP

Spruce Point is pleased to release its latest report on iRobot Corp (Nasdaq: IRBT). Media Hype of a Robotics Revolution (Similar To 3D Printing Craze) Is Overblown. IRBT Is Hyping Its IP Portfolio, But Lacks A Monetization Strategy. The Hype … Continue reading

LKQ CORP

Prescience Point is pleased to release its latest report on LKQ Corp (Nasdaq: LKQ). The 122 page report outlines extensive research into the companies financial reports and we believe the following: LKQ is an ineffective roll-up, they are caught in … Continue reading

FLEETMATICS, INC.

We believe shares of Fleetmatics Group PLC (“the company”, or “FLTX”) are grossly overvalued, reflecting few, if any, of the serious risks that warrant questioning the credibility of the company’s financial statements.

JUST ENERGY

Just Energy (NYSE: JE / TSX: JE) is a company that U.S. consumers and investors are quickly realizing has become toxic to their wallets through deceptive energy marketing practices, and harmful to their brokerage accounts.

INNERWORKINGS, INC.

Prescience Point believes shares of InnerWorkings, Inc. (Nasdaq: INWK or “IW”) are grossly overvalued and poised to collapse by as much as 55%. We believe the company is inflating its revenues in violation of GAAP principles by misapplying gross revenue … Continue reading

BOULDER BRANDS

Prescience Point follow-up report on Boulder Brands’ (Nasdaq: BDBD), consisting of a deep-dive look at the company’s Q4’2012 results and management’s 2013 guidance. In short, the story does not add up and we expose the red flag components of its … Continue reading

ASIAINFO-LINKAGE, INC.

Amidst a storm of investor distaste for U.S.-listed Chinese equities, and with its shares trading at a fresh 5-year low earlier this year, AsiaInfo-Linkage, Inc. (ASIA) followed the precedent of numerous other Chinese companies in announcing it had received a … Continue reading

UNITED STATES ANTIMONY CORP

In this report, we explore United States Antimony Corp (Amex: UAMY) which made its graduation from the bulletin board to the AMEX on May 21st at approximately $4.00 share, giving the company a $275 million valuation.

BAZAARVOICE

On February 23rd, Bazaarvoice (Nasdaq: BV) raised $114 million at its initial public offering by selling 9.5 million shares at $12 per share. The expected pricing range was $8.00 – $10.00 per share, and the shares ultimately closed at $16.50 … Continue reading

LIQUIDMETALS

LQMT is a highly promoted penny stock with a market cap that exceeds $125 million, and highly speculative business prospects. However, a little due diligence reveals a company with a troubled past, as highlighted in an earlier article written by … Continue reading

GLOBAL SOURCES

Global Sources Ltd. (Nasdaq: GSOL) is perhaps the original and oldest existing China RTO Company in the US stock market. In March 2000, Global Sources exchanged 100% of its shares for a 95% stake in Fairchild (Bermuda) Ltd., a subsidiary … Continue reading

CAMELOT INFORMATION SYSTEMS

A closer look into Camelot Information Systems (“CIS”) and their position in the Chinese Information Technology industry reveals numerous question marks investors should consider.

CHINA INTEGRATED ENERGY

All around the world, biodiesel is a challenging business with high capital costs, cyclical gross margins and returns on capital. There are limited barriers to entry as production processes to make biodiesel are well understood and can be accomplished by … Continue reading

ZST DIGITAL NETWORKS

ZST Digital Networks (OTCPK:ZSTN) came public in October 2009 and raised $25 million by offering 3.1m shares at $8 per share. The offering was led by Rodman & Renshaw and Westpark Capital, two ubiquitous underwriters in the market for bringing … Continue reading