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  "documentTitle": "Prestige Consumer Healthcare Inc. (PBH)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-06-30 00:00:00",
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      "kind": "callout",
      "text": "Analysts believe PBH is recession resistant. DA Davidson, with the highest price target on the street, stated so on an earnings call",
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      "text": "Based on a new addition to PBH’s 2020 Proxy Statement, we believe PBH is warning investors that the business is not recession proof and is expecting to face challenges as a result of the macroeconomic environment",
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      "kind": "callout",
      "text": "Based on a new addition to PBH's 2020 Proxy Statement, we believe PBH is warning investors that the business is not recession proof and is expecting to face challenges as a result of the macroeconomic environment",
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      "text": "Due to the uncertainty in the current macroeconomic environment related to the COVID-19 epidemic, it is challenging to set credible 1-year or 3-year goals, for both our AIP and performance units. The Compensation and Talent Management Committee elected to grant performance units in May and then set appropriate performance goals later in the year when there is more certainty, ideally by mid-year, but no later than fiscal year end for performance units. Setting goals for the annual incentive is challenging beyond the very near term and would not serve the purpose of setting a realistic target. The Committee elected to retain discretion to modify the AIP for the year and will continue to evaluate setting a formal goal when there is more certainty, with the total payout being made at the end of the fiscal year.",
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      "text": "Spruce Point believes that even after arguably the worst of COVID-19 is behind us, management still has no visibility. Analysts baking in resiliency to PBH’s model fail to see the structural changes happening that, we believe, will prevent a recovery. We believe management’s inability to set long-term goals, regardless of the current economic environment, shows a complete lack of faith in the sustainability of their own business.",
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      "kind": "quote",
      "text": "So if we were to fall into a recession, even though you’re kind of recession resistant, would that affect the lenders would think about lending to you?",
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      "kind": "quote",
      "text": "\"So if we were to fall into a recession, even though you're kind of recession resistant, would that affect the lenders would think about lending to you?\" — Linda Bolton Weiser, DA Davidson, November 2, 2017",
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      "text": "Source: 2020 Proxy Statement, Earnings call transcripts",
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      "kind": "title",
      "text": "Prestige Brands Is Not Recession Resistant",
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