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  "documentTitle": "Heska Corporation (HSKA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2021-10-25 00:00:00",
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  "notes": "This is a classic 'villain critique' slide, establishing the target's poor fundamentals and manipulative behavior.",
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      "text": "Facing a stagnant business, challenged competitive position, and arguably few (if any) strategic advantages, we believe Heska embarked on the well-worn path of low-quality acquisitions, promotion, and financial obfuscation",
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      "text": "Facing a stagnant business, challenged competitive position, and arguably few (if any) strategic advantages, we believe Heska embarked on the well-worn path of low-quality acquisitions, promotion, and financial obfuscation.",
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      "text": "Heska's financial performance from 2017 through 2019 was unimpressive during a period of industry growth. We estimate organic revenue growth was negative (-4% CAGR) versus an 11% CAGR for sector leader IDEXX Labs. All major profit measures declined markedly.",
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      "text": "We believe the market feedback loop only reinforced Heska's unsubstantiated narrative. Sell-side analysts, seeking a fresh idea to pitch, appear to endorse management's claims without a robust forensic analysis.",
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      "kind": "list",
      "text": "At the same time, companion animal expenditure became a hot investment theme, particularly in early 2020 due to the pandemic amidst indications of growth in pet ownership.",
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      "text": "organic revenue growth: -4%",
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      "kind": "paragraph",
      "text": "As a result, Heska shares have rallied nearly 140% since the end of 2019, and the Company is effectively trading in-line with dominant sector leader IDEXX Labs; we believe little about Heska has changed, at least for the better",
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      "kind": "title",
      "text": "We Believe Heska Has Been Struggling, And Resorting To Low-Quality M&A",
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