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  "documentTitle": "Sunrun Inc. (RUN)",
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      "text": "Were RUN’s basis inflation disallowed on a go forward basis, we estimate that it would have an approximate $0.50 / watt funding gap to fill, which would imperil its ability to grow.",
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      "text": "Overstatement: 33.0%",
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      "text": "RUN relies on ABS issuances to finance its growth... we believe the ABS are exposed to bankruptcy risk because RUN has not created a reserve to remove or service customers’ solar systems.",
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      "text": "Appraisers, they usually discard the comparable sales method, on the theory that it's hard to find good data, which is a little hard to believe in the solar rooftop market, since most of these same companies make direct sales to consumers.",
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      "text": "The concept of a cash-burning company tapping the capital markets on the back of “mark to model” isn’t new. RUN is more exposed though that it is just as dependent on abusing government subsidies with its unduly aggressive models.",
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      "kind": "paragraph",
      "text": "Then when you get IRS audited, there’s nothing much they can say. Of course, they do not have the solar expert[s] to do it.",
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      "text": "A whistleblower filed a complaint with the IRS in 2018 detailing this abuse... we estimate that RUN could be liable for as much as $948 million.",
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      "text": "Appraisers, they usually discard the comparable sales method, on the theory that it's hard to find good data, which is a little hard to believe in the solar rooftop market, since most of these same companies make direct sales to consumers. — Interview with Renewable Energy Legal Expert D, October 2021",
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      "text": "Interview with Renewable Energy Legal Expert D, October 2021; Interview with Former Novogradac Executive E, November 2021; We estimate that the direct sales price approximates the Market Approach valuation.",
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      "text": "Fair Market Value Decomposition ($/watt) | Company | MWC | Overstatement\nIncome Approach | 4.99 | 2.96 | 68.9%\nCost Approach | 4.93 | 3.93 | 25.7%\nSimilar Transactions | 3.38 | 3.38 | -\nFMV | 4.85 | 3.65 | 33.0%",
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      "kind": "title",
      "text": "Shaky Pillar Three – Issuing ABS that Could be Exposed to a RUN Bankruptcy",
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