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  "documentTitle": "Momo, Inc. (MOMO)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-06-27 00:00:00",
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  "pageNumber": 8,
  "pageCount": 70,
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  "nDataPoints": 4,
  "notes": "Uses a before-after-bridge style logic to contrast challenges with their investigative approach.",
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      "text": "This variant point of view alone suggests a lower stock price for Momo",
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      "text": "Momo Diligence Challenges vs Spruce Point Diligence Approach",
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      "text": "Our primary industry and company research suggests that the China live video space is maturing, and that it will likely result in lower market share and higher cost of revenue for Momo over time. As a result, we expect growth to disappoint relative to current expectations. Meaningful elements of Momo's “brand” of live streaming are also squarely in the crosshair of regulators. This variant point of view alone suggests a lower stock price for Momo",
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      "text": "However, the true risk of this investment resides in myriad, potentially catastrophic, red flags identified from our forensic analysis. We believe that Momo's multiple will materially rerate to 13x-15x, the bottom end of the range since the introduction of live streaming, and that the Company's operations and financial performance could also be impacted by regulatory actions",
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      "kind": "paragraph",
      "text": "In order to develop a full appreciation of the business case and financial risks of a Momo investment, Spruce Point engaged an experienced China-based research consultant to assist in conducting ~50 detailed Mandarin interviews of the live stream ecosystem, and a forensic analysis of Momo's VIE operations and financials",
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      "text": "Disturbing Momo Findings From Spruce Point's Forensic Diligence Suggest 30% – 50% Downside",
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