Spruce Point Capital Management is pleased to announce the release of a new and unique forensic investigative report tomorrow, August 8th on their website www.sprucepointcap.com.
"Innovate or die" is a famous quote made decades ago often attributed to management consulting guru Peter Drucker. We believe the message is even more true in today's hyper competitive and increasingly global business environment. Companies that fail to stay ahead of the curve in delivering value to customers can see their fortunes change fast. We also typically find that once the innovation well runs dry, companies often pivot to growth by acquisition to plug the hole. When acquisitions are done poorly, and overpaid for with expensive leverage, problems can intensify and compound an already tenuous situation.
We will lay out the case why we believe tomorrow's Company is caught in an innovation bind and downplaying competitive pressures. In addition, we will also explore why we believe multiple billions of dollars in recent acquisitions and investments could be characterized as expensive failures. However, this may just be the tip of the iceberg. We often stress the importance of carefully evaluating the management and Board behind all corporate decision-making. We will lay out our reasons why investors should be especially skeptical of the Board's engagement and the quality of the Company's financial reporting and accounting. The Chief Accounting Officer (CAO) previously played an executive role at a prior public company that came under intense scrutiny for its reporting and settled with regulators. Moreover, we were stunned to find that the Company itself has made public statements about the CAO in an obscure area that heighten our suspicion that something is amiss. It also does not build confidence that we had difficulty verifying the CAO's biographical claims. Also, it could just be an entire coincidence but the Company recently appointed a new Board member to the Audit Committee that held senior accounting and reporting roles at a company that many years ago, with the assistance of outside forensic accountants, restated financial results.
The full report, along with its disclaimers for review, can be downloaded tomorrow at www.sprucepointcap.com.
