{ "docId": "019dd923-622c-750b-8b99-1e32ee1ceb49", "docSlug": "cce862680d4f", "documentTitle": "Heska Corporation (HSKA)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-10-25 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 51, "pageCount": 128, "prevPage": 50, "nextPage": 52, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses a red flag icon to signal a warning or contradiction.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-1e32ee1ceb49/51", "deckHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49#slide-51", "components": [ { "bbox": { "h": 0.09, "w": 0.87, "x": 0.115, "y": 0.17 }, "kind": "callout", "text": "We never cease to be surprised by what Wilson says. At the Stifel Conference in June 2021, Wilson claimed regarding the Element AIM, \"we're not changing veterinarian behavior.\" We find this surprising, since we believe doing more point of care fecal testing AND buying from Heska would both be material changes in vet behavior. Wilson has stacked up other comments that are hard to support.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "525dc199-127d-4a69-9ec3-c40beab09542", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "We never cease to be surprised by what Wilson says. At the Stifel Conference in June 2021, Wilson claimed regarding the Element AIM, \"we're not changing veterinarian behavior.\" We find this surprising, since we believe doing more point of care fecal testing AND buying from Heska would both be material changes in vet behavior.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3c-7011-a9a8-2daf7c27080c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.97, "x": 0.015, "y": 0.445 }, "kind": "paragraph", "text": "Isn't logistics a feature as opposed to a bug for businesses like Amazon, Postmates, DoorDash, and many others?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "34ee4e25-3a49-4d09-8854-cdfc250d1b4f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.97, "x": 0.015, "y": 0.755 }, "kind": "paragraph", "text": "Zoetis started shipping its fecal analyzer in 2020. Moreover, in the Company's 2019 annual financial report in Germany, scil noted that it started selling a new urine analyzer that year. Fecal testing has been done at reference labs for years. How can he say the technology doesn't exist?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5877838e-f804-43c9-a3fb-5acff5ab5c14", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.97, "x": 0.015, "y": 0.6 }, "kind": "paragraph", "text": "Our research found that vets rarely mix and match equipment from different vendors, especially if they use IDEXX.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "747f54bb-3238-4a9d-9c03-6166a840b329", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"It's inefficient to take a slide or sample and drop in an envelope and have somebody drive a car to pick it up, drive the car to the airport, drop it into a box, put it on an airplane, fly to Los Angeles or New York and drive it from the airport to a Central Lab and then have it looked at. We think that's -- it's not green, it's not efficient and we think technology can make the experience better for the pet, the pet owner and the veterinarians.\" — Kevin Wilson, Q4 2020 Earnings Call", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f3c-7011-a9a8-30fb8594bfd6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.55, "x": 0.015, "y": 0.965 }, "kind": "source-note", "text": "Source: Bloomberg Transcripts, scil animal care company GmbH 2019 filing with Unternehmensregister", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bcfbdcc0-f7f2-42e1-9d36-b2469329e855", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.97, "x": 0.015, "y": 0.295 }, "kind": "table", "text": "Q4 2020 Earnings Call: It's inefficient to take a slide or sample and drop in an envelope... Stifel Conference June 2021: We don't have to displace the blood and plasma relationship... Stifel Conference June 2021: We think point-of-care fecal combined with urine product is unique...", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b3a39acb-a0a5-4786-b0af-429a4161c4c2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.67, "x": 0.315, "y": 0.015 }, "kind": "title", "text": "We Believe Wilson Has Made Other Statements Regarding The Element AIM That Don't Make Sense", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ca48c158-bef4-457c-82e0-d666e3e8ac0c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "5d0492ca-7f2d-42e7-8315-d84802efd70b", "evidence": "Contrasting executive statements with external facts to expose inconsistencies.", "confidence": 0.9 } ], "arcBeats": [ { "to": 128, "from": 51, "beatId": "4e43434d-b2d5-4e85-8876-a8ed1db53557", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Victory", "beatSlug": "overcoming-monster-the-victory", "evidence": "The deck concludes with a strong sell opinion and a call to action for investors.", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [ { "to": 70, "from": 50, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "5757e4f8-7cdf-47a2-9b16-5ff0d9fc9db3", "evidence": "The deck presents a thorough analysis of Heska Corp.'s financials and business model, highlighting several red flags.", "position": 1, "objective": "The cost of inaction for investors is significant, as Heska Corp.'s stock price may decline.", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }