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  "docSlug": "0a3a22290f60",
  "documentTitle": "GFL Environmental Inc. (GFL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-08-18 00:00:00",
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  "notes": "Uses a 'Spruce Point Warning' callout to directly refute the quoted analyst text.",
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      "text": "Be careful when a stock analysts (notably Jefferies with the second highest price target in the world on GFL) gloss over things with euphemistic language like \"hiccups\" to describe GFL's \"successful\" entry into the U.S. We believe the reality is much more bleak, and shows serious lapses in GFL's acquisition due diligence process, notably Rizzo Environmental",
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      "text": "M&A Catalysts Are Among the Highest in the Group\n\nGFL's foray into the US business (~47% of mix) began in 2016 with Michigan (Kinderhook sale of Rizzo), mostly on the resi side. After proving it could successfully enter the US market, despite a few early hiccups, the company's Waste Industries platform deal in 2018 (purchased for ~US$2.8bn [C$3.65bn] from Macquarie) was one of the highest-quality assets in the space. Although the company arguably did not get the asset very cheaply, the post-synergy multiple (building volume density with tuck-in deals) is quite attractive. Moreover, the WM/ADSW divestitures mandated by the DOJ were acquired by GFL recently. We acknowledge that there was some market expectation already baked in that GFL was the front runner on the deal, but the deal came in larger than most were expecting ($345mm in revenue vs $200mm+). It is also important to note that the ADSW asset is very complementary to GFL's Waste Industries business (for more detail see A Sigh of Relief)",
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      "text": "Source: Jefferies Initiation, July 1, 2020",
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      "kind": "title",
      "text": "While The Stock Promoters Play Up GFL's M&A Abilities And Opportunities....",
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