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  "documentTitle": "Generac Holdings, Inc. (GNRC)",
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  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-06-22 00:00:00",
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      "kind": "callout",
      "text": "To make matters worse, we believe the CEO may have insulted the homebuilding industry by referring to them as \"land developers\" interested in flipping.",
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      "text": "The homebuilder market would appear to be a natural fit for Generac to sell Home Standby Generators. Partnerships with homebuilders could allow them to offer backup generators as standard for new homes, or an upsell option so that homeowners can have the benefits of backup power. Generac promoted this opportunity as an attractive sales channel for new investors in its early 2009 IPO filings. Fast forward a decade later, the Company is finally admitting the strategy is a failure. To make matters worse, we believe the CEO may have insulted the homebuilding industry by referring to them as \"land developers\" interested in flipping.",
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      "text": "we have some relationships with some builders on a direct basis. But that largely has not been that successful. In fact, many of the really large builders, the production homebuilders, they're not even really builders. They're in that classification of a builder, but they're really developers, they're really land developers. And so by and large, what they do is they're buying tracks of land and they're subcontracting the actual construction of the home on that land and they're putting -- they're putting together a property that can flip and they can turn so that they can get the value of the land out from underneath it. So they're less about building and more about developing. And that doesn't really fit in with us trying to talk about, \"hey, we want to add a $4,000 product to the cost of a home.\" They want to make the home affordable so they can flip the land underneath it. That's really what they're interested in. So we're -- we have a misalignment of interest when it comes to talking to big production builders. — CEO Response, Analyst Day, Sept 4, 2019",
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      "text": "Source: Analyst Day, Sept 4, 2019",
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      "kind": "source-note",
      "text": "Source: IPO Prospectus",
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      "kind": "table",
      "text": "Generac's IPO Strategy Pitch (2009) vs Today's Reality: Failure Admitted A Decade Later",
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      "kind": "title",
      "text": "Failed IPO Distribution Goals",
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