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  "documentTitle": "Canadian Tire Corporation (CTC.A)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
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  "notes": "Uses a 'villain critique' style to highlight management's past failures and lack of specifics.",
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      "kind": "callout",
      "text": "We are skeptical of CTC's broad cost savings plan as management failed to articulate many specifics",
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      "text": "We believe Canadian Tire's cost savings plan is too little and too late. As shares rose 6.5% over the next two trading days, the market has fully bought in to management's plan, despite most retail restructurings ending in failure. Iain Kennedy, CTC's executive leading the initiative, has failed twice before while at BlackBerry and Celestica. After purchasing Helly Hansen and Party City, we believe it will be difficult to execute such an aggressive cost savings plan.",
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      "text": "\"In terms of growth, I would say, growth is reflective of engagement. We don't have a strategy necessarily to grow the e-commerce revenue. We have a strategy to grow the engagement in the marketplace and the customer share of wallet and customer engagement and we're using both channels to do that. So we're not targeting a specific growth rate...\" — Allan MacDonald, EVP, Retail. \"So literally hundreds of initiatives that we have in motion and have identified can now be placed in an organized structured program for execution and tracking. And of course we are continuing our extensive programs targeting internal and external expense reduction.\" — Stephen Wetmore, CEO. \"even operational efficiency programs that generate 20% and 30% return on invested capital are extremely valuable\" — Stephen Wetmore, CEO. \"You know where to Steven's opening remarks, we now have hundreds of initiatives identified in size\" — Gregory Hicks, President of Retail.",
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      "text": "Q3 2019 Earnings Call (November 7, 2019) Quotes from Allan MacDonald, Stephen Wetmore, and Gregory Hicks regarding growth and efficiency initiatives.",
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      "text": "Canadian Tire Press Release (November 7, 2019) Operational Efficiency program announced to target $200+ million in annualized savings by 2022",
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      "text": "Cost Savings Initiative Is Not Clear",
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