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  "documentTitle": "Hill-Rom Holdings, Inc. (HRC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2019-10-29 00:00:00",
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      "text": "Hill-Rom (“HRC” or “the Company”) is a low-quality medical equipment roll-up which is rapidly approaching the end of its current growth cycle.",
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      "text": "Free Cash Flow Inflated From Chronic Mis-Forecasting of Capex And Low R&D: HRC has consistently misguided investors about capex requirements almost every year since FY10, and has underspent on capex against pre-year guidance by 20-30% since FY16.",
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      "text": "Failure To Fully Write Down Assets: HRC has taken impairments of varying sizes in conjunction with a number of its divestitures of failing business lines. We believe that just over $500M of goodwill and other intangibles must be written off.",
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      "kind": "list",
      "text": "Non-Stop M&A And Confusing Math Masks A Slow-Growing Business: As management exits failing acquisitions, it instructs analysts to evaluate growth using its proprietary “core growth” metric, which adjusts growth for the negative impact of planned divestitures.",
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      "text": "A History Of Value-Destructive M&A: In an attempt to make up for slow top-line growth driven by low demand for low-tech hospital furniture, management has spent ~$3.5B on M&A since FY09 on businesses across numerous sub-sectors and geographies.",
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      "text": "share price: $45-$75",
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      "text": "Hill-Rom (\"HRC\" or \"the Company\") is a low-quality medical equipment roll-up which is rapidly approaching the end of its current growth cycle. HRC is a jumble of hospital furniture and medical device businesses assembled in part through $3.5B-worth of hasty acquisitions executed throughout the 2010s.",
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      "kind": "title",
      "text": "Short HRC: Spruce Point Sees 25%-55% Downside To $45-$75 per Share",
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