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  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-04-06 00:00:00",
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  "notes": "The slide uses a red box to highlight the 'Over (Under) Spend' row, specifically emphasizing the negative variances in 2020 and 2021.",
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      "kind": "callout",
      "text": "We believe Stryker has been delaying Capex to temporarily boost cash flow, especially as it has to pay down debt related to the Wright Medical Group acquisition.",
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      "text": "Capex variance: $600 million",
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      "text": "We believe Stryker has generally not been good about forecasting its capital expenditures. However, the past two years have been particularly poorly planned. The Company can blame COVID-19 for the large variance in 2020, but it again materially underspent in 2021. The CFO recently touted a $600 million annual capex figure in late 2021, but he must have known that Stryker would fall short of that target for two consecutive years. We believe Stryker has been delaying Capex to temporarily boost cash flow, especially as it has to pay down debt related to the Wright Medical Group acquisition.",
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      "kind": "quote",
      "text": "On capital expenditures, we roughly spend $600 million a year on CapEx, and we really focused that CapEx on what are the things that are going to make sure that we are driving future efficiencies for Stryker. These include IT systems. These might include upgrading manufacturing equipment so we can drive in cost savings. It's really prioritizing that CapEx that is going to really contribute to the overall model.",
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      "kind": "quote",
      "text": "\"On capital expenditures, we roughly spend $600 million a year on CapEx, and we really focused that CapEx on what are the things that are going to make sure that we are driving future efficiencies for Stryker. These include IT systems. These might include upgrading manufacturing equipment so we can drive in cost savings. It's really prioritizing that CapEx that is going to really contribute to the overall model.\" — CFO, Shareholder / Analyst Day, Nov 18, 2021",
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      "text": "Note: Guidance as given at the beginning of year conference call",
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      "kind": "table",
      "text": "Stryker's Record of Capital Spending vs. Forecasted Guidance",
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      "kind": "title",
      "text": "Poor Capex Planning or Delaying Capex To Boost Free Cash Flow?",
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