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  "docSlug": "207d3ac66ddd",
  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
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  "pageNumber": 64,
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  "notes": "The slide uses a custom flow diagram to highlight systemic risk, specifically labeling various flows as 'Credit Risk', 'Inventory Risk', and 'Tenant Risk'.",
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      "text": "Canadian Tire's business model is an interconnected web of risk held by Canadian Tire. The model is highly dependent on debt financing and is a much riskier than a traditional Dealer model.",
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      "kind": "diagram",
      "text": "Flow diagram showing relationships between Customers, CT Retail Dealers, Canadian Tire, Canadian Tire Bank, CT REIT, and Lenders.",
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      "text": "Key: Payment (Green), Risk (Red), CT Money (Blue)",
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      "text": "Canadian Tire’s business model is an interconnected web of risk held by Canadian Tire. The model is highly dependent on debt financing and is a much riskier than a traditional Dealer model. Canadian Tire Retail Dealers borrow (guaranteed by CTC) to purchase inventory from Canadian Tire and rent locations from CT REIT. The Dealers sell the inventory to customers financed by CT Bank Credit Cards. The customers then receive “Canadian Tire Money” rewards to spend at CT Retail stores, further boosting sales.",
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      "text": "Source: Spruce Point research",
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      "kind": "title",
      "text": "Does The Market Fully Understand This: Overleveraged / Debt Fueled Business Model",
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