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  "docSlug": "522270211ac4",
  "documentTitle": "Sunnova Energy International Inc. (NOVA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-09-29 00:00:00",
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  "notes": "The slide uses a red box to highlight the 12/31/19 period across all three companies to emphasize the anomaly.",
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      "kind": "callout",
      "text": "Spruce Point observes that Sunnova has engaged in a highly aggressive business practice related to prepaid inventory purchases which we believe has provided an unsustainable benefit to recent results.",
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      "text": "Total Inventory / LTM Sales: 1.06x",
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      "text": "Spruce Point observes that Sunnova has engaged in a highly aggressive business practice related to prepaid inventory purchases which we believe has provided an unsustainable benefit to recent results. Sunnova added $96m of prepaid inventory at year end 2019 before the tax credit was reduced from 30% to 22%. This amount, relative to its LTM sales, is more than 3x its peers.",
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      "text": "Source: Company filings",
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      "text": "Comparison table of Inventory, Prepaid Inventory, Total Inventory, LTM Sales, and Total Inventory / LTM Sales for Sunnova, Sunrun, and Vivint Solar across 7 periods.",
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      "kind": "title",
      "text": "Bloated Prepaid Inventory Raises Concerns",
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      "evidence": "The document agitates these issues, highlighting the flaws in Sunnova's business model and the risks associated with investing in the company.",
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      "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)",
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