{
  "docId": "019dd923-622c-750b-8b96-6023c2cb0d2d",
  "docSlug": "671b21c936c8",
  "documentTitle": "Groupe Casino (CO)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-01-13 00:00:00",
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  "notes": "This is a page from a Muddy Waters Research report (short seller letter).",
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      "kind": "list",
      "text": "1. How much EBITDA has been, and is expected to be, generated by property sales? This answer should individually cover 2014, H1 2015, H2 2015, and 2016.",
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      "kind": "list",
      "text": "1. Control person(s) have significant equity stakes and / or equity incentives, 2. They aggressively seek to grow earnings through debt financing, 3. As debt grows, their focus grows to include gaming credit metrics – particularly operating cash flow.",
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      "kind": "paragraph",
      "text": "To throw down the gauntlet, we think it highly likely that Casino’s discounting strategy has not generated much of an increase in profitability, and that the company is using property sale gains to cover this up.",
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      "kind": "paragraph",
      "text": "Your complete and intellectually honest answers to the following questions will go a long way toward allowing investors to determine whether our opinion, that Casino is a highly-levered, poorly performing business being hollowed-out and managed primarily to buy time for the massive debt its controlling shareholder has amassed, is reasonable.",
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      "kind": "paragraph",
      "text": "The company’s failure to address our estimates of respective property sale gain contributions to EBITDA in 2014 and LTM of €140 million and €165 million gives us confidence our estimates are not high.",
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