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  "docId": "019dd923-622c-750b-8b98-58a1b82469f3",
  "docSlug": "c4de14509091",
  "documentTitle": "MGP Ingredients, Inc. (MGPI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-01-12 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 49,
  "pageCount": 53,
  "prevPage": 48,
  "nextPage": 50,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "dense",
  "nDataPoints": 180,
  "notes": "The slide uses a peer group comparison to argue that MGPI is overvalued by bulls who misclassify it as a beverage company.",
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      "kind": "callout",
      "text": "The bulls aspirational hopes are that MGPI will successfully transition from a commodity ingredient producer to a fully branded spirits company, and achieve a significantly higher multiple.",
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      "kind": "metric",
      "text": "Price / Consensus EPS: 28.6x",
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      "text": "The bulls aspirational hopes are that MGPI will successfully transition from a commodity ingredient producer to a fully branded spirits company, and achieve a significantly higher multiple. As a result, they try to justify the current $50 price target on a multiple that MGPI doesn't deserve. We believe its transition will fail miserably, and that investors will re-value it back in line with commodity ingredients peers at approximately 1x sales and 2x book value. The bulls also ignore the fact that MGPI's common stock is subordinate to the preferred stock, which is controlled by the Seaberg family, and has special voting rights and controls a majority of the Board votes.",
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      "kind": "source-note",
      "text": "Source: Company financials, Wall St. and Spruce Point estimates",
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      "kind": "table",
      "text": "Peer comparison table of Commodity Ingredients vs Aspirational Beverage companies across various valuation metrics.",
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      "kind": "title",
      "text": "Bulls Have Aspirational Dreams MGPI Can Be Valued Like a Beverage Company",
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      "evidence": "Direct comparison of MGPI against two distinct peer groups to highlight valuation discrepancy.",
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