{
  "docId": "019dd923-622c-750b-8b99-38d956541145",
  "docSlug": "a8618aad4c6b",
  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-04-06 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 144,
  "pageCount": 195,
  "prevPage": 143,
  "nextPage": 145,
  "slideType": "preempt_rebuttal",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 100,
  "notes": "The slide uses a timeline-based table to correlate specific corporate events (auditor change, PE exit, etc.) with deteriorating inventory metrics.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-38d956541145/144",
  "deckHref": "/decks/019dd923-622c-750b-8b99-38d956541145",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-38d956541145.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-38d956541145#slide-144",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.15,
        "x": 0.2,
        "y": 0.75
      },
      "kind": "callout",
      "text": "Big Allowance Increase Post Auditor Change",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1bb9fc24-51f6-464c-9618-f0aeb9d4adbe",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.34,
        "x": 0.59,
        "y": 0.91
      },
      "kind": "callout",
      "text": "Inventory To Sales Increasing, While Inventory Growing 2.3x The Rate of Sales",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "df8d8d26-fa8a-439c-88b6-a0db9abd78d3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Inventory / Sales: 2.3x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b2-736e-8e56-454b1efabf2d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.86,
        "x": 0.07,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "There are many classic Spruce Point red flags leading up to Stryker’s acquisition of K2M Group. We observe an auditor change, admission of material weakness of internal controls, and a distributor acquisition. The most alarming issue we observe is that following Stryker’s approach to K2M management of interest in pursuing a transaction, inventory growth started exceeding sales by 2.3x. Combine these facts with our finding of a qualified audit opinion related to K2M's foreign inventory and we see strong potential of foul play at work.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5ffcdbec-eebd-4c55-b646-02e963bc652d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.5,
        "x": 0.07,
        "y": 0.91
      },
      "kind": "source-note",
      "text": "Source: K2M financials and Spruce Point analysis. Note: Auditor change (May 2016), Stryker approaches K2 (Proxy page 32), Material Weakness of Financial Controls (2017 10-K), Distributor customer and inventory acquisition (May 2018, 10-Q) and Private equity sells out of total position (prospectus)",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bae92df7-13ba-4a83-b424-72baff090209",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.86,
        "x": 0.07,
        "y": 0.3
      },
      "kind": "table",
      "text": "Financial data table showing K2M sales, inventory, and growth metrics from June 2016 to Sept 2018.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "99a0f2e9-5ea2-45f9-bc25-5451f1bfee89",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.65,
        "x": 0.28,
        "y": 0.03
      },
      "kind": "title",
      "text": "Multiple Warning Signs Leading Up To Stryker’s Acquisition of K2M Group",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "59ed8f9f-525c-4cd0-a87d-1c90935bdf86",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "7247b372-c7f6-4ecf-a79f-e6d732036146",
      "evidence": "The slide explicitly links financial anomalies (inventory growth vs sales) to 'potential of foul play'.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 195,
      "from": 61,
      "beatId": "85f871f2-b4a8-4a0d-ac09-177a661eed97",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Resolution",
      "beatSlug": "resolution",
      "evidence": "The document concludes with a clear call to action, urging investors to reconsider their position on Stryker's stock.",
      "position": 4,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}