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  "docSlug": "207d3ac66ddd",
  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "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 dual-axis chart combining bar and line elements to show account growth trends.",
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      "kind": "callout",
      "text": "The unprecedent growth of the past 4 years will be difficult to sustain. Over the past year, the number of accounts have been flat while the number of new accounts has declined. A majority of the growth over the past 7 quarters has come from higher risk lending",
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      "kind": "callout",
      "text": "Our research shows Dealers are \"highly incentivize to encourage customers to use Canadian Tire Credit Cards\"",
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      "text": "A majority of the growth over the past 7 quarters has come from higher risk lending",
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      "text": "Dual-axis chart showing New Accounts with Balance (LTM and Past 2 Years) vs Average Number of Accounts with Balance",
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      "text": "Number of Accounts with Balance",
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      "kind": "paragraph",
      "text": "Canadian Tire has made an effort to grow the size of its lending portfolio. CTC's recent rebranding of its rewards program, \"Triangle Rewards,\" was part of a broad push to increase the number of store cards issued. The current magnitude of credit dwarfs prior time periods including leading up to the 2008 financial crisis. As the number of cards have increased, new financial disclosures show growth in higher risk assets. We believe Canadian Tire has loosened its lending criteria to achieve this growth and fuel instore retail sales. Especially at the current point in the credit cycle, this is an extremely risky practice.",
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      "text": "Our research shows Dealers are \"highly incentivize to encourage customers to use Canadian Tire Credit Cards\"",
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      "kind": "source-note",
      "text": "Source: Company Financial Reports, Company Quarterly Credit Card Portfolio Reports",
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      "kind": "title",
      "text": "Aggressive Push To Increase Lending",
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      "evidence": "The slide explicitly links aggressive growth to 'loosened lending criteria' and 'higher risk assets' to expose potential financial misrepresentation.",
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