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  "documentTitle": "Canadian Tire Corporation (CTC.A)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2019-12-05 00:00:00",
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  "notes": "The slide uses a red horizontal line to denote the average impairment rate and highlights the post-2018 period as a point of concern.",
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      "kind": "callout",
      "text": "Spruce Point View: In order to continue growing its credit portfolio, CTC has increased its lending to higher risk and subprime borrowers. This is extremely risky at the current late stage in the credit cycle",
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      "kind": "callout",
      "text": "In order to continue growing its credit portfolio, CTC has increased its lending to higher risk and subprime borrowers. This is extremely risky at the current late stage in the credit cycle",
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      "text": "Net Impairment Loss As A % Of Credit Card Loans",
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      "text": "Net Impairment Loss: 5.99%",
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      "text": "Net impairments have continued to rise since the adoption of IFRS 9 in January 2018. We believe this is a result of the growth in loans categorized in CTC's higher risk buckets. This should be a red flag for investors as CTC's rapid growth has been achieved through increased risk. CTC provides limited disclosure on the credit quality of its portfolio. CTC does not disclose credit metrics for the overall portfolio including borrowers' credit score.",
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      "text": "Note: Q1 2019 and Q3 2019 are adjusted for change in accounting standards. Source: Company Financial Reports",
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      "text": "Increase Of Higher Risk Credits Should Result In Growing Impairments",
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