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  "docSlug": "cfe5ee328183",
  "documentTitle": "Stroer SE & Co. KGaA (SAX)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-04-21 00:00:00",
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  "notes": "This slide outlines specific allegations of financial misrepresentation and operational anomalies.",
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      "kind": "callout",
      "text": "As a result of the foregoing factors, we find the investment case for Ströer hollow.",
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      "text": "Ströer’s year-end cash flow statements wrongly show that Ströer had no borrowings during the year. However, Ströer’s annual statement cash flow statement only shows borrowing activity net of repayments, rather than gross. This appears to violate IFRS, and gives the incorrect appearance Ströer is able to fund itself through cash flow and cash on hand throughout the year. In our opinion, Ströer’s auditor has committed a clear error in allowing for the misleading presentation in the annual cash flow statement.",
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      "kind": "paragraph",
      "text": "Ströer artificially inflates EBITDA through other operating income, and certain capitalized items that we suspect are more conservatively expensed.",
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      "text": "Ströer’s public video operation, Infoscreen, seems to be an outlier in the industry in terms of its profitability. Since its reclassification to the Digital segment in 2015, Infoscreen has been integral to the Ströer growth story. We believe Infoscreen deserves greater scrutiny from investors.",
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      "arcName": "Overcoming the Monster",
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