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  "documentTitle": "Caesarstone Ltd. (CSTE)",
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  "notes": "The slide highlights potential accounting risks related to inventory impairment and inaccurate reseller network reporting.",
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      "text": "It is our view that CSTE will have to impair their finished goods inventory held by such agents, (i.e. receivables impairment).",
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      "text": "With a lack of supplier management, we pose the question: what is the cost of display items and stock on loan to resellers who are no longer selling Caesarstone products? Should agent inventory be reflected on CSTE’s accounts or on a returns basis if it is not sold a end user, it is our view that CSTE will have to impair their finished goods inventory held by such agents, (i.e. receivables impairment).",
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      "text": "http://www.caesarstone.com.au/find-a-display",
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      "text": "It appears that CSTE has purchased or collated a defunct database of kitchen fitters, worktop fabricators and suppliers and transformed this into a reseller catalogue. There is a similar theme to the USA where agents are either no longer operating, no longer sell Caesarstone, are exclusive to competitors or have never sold CSTE products.",
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      "text": "It’s likely that CSTE’s biggest customer after Ikea is their own marketing department. If CSTE's reseller database is accurate, they would require a significant volume of samples.",
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      "text": "Given the spread of their reseller network, it’s no wonder that CSTE’s forecasted revenues in Ikea (the largest customer to date) is a “finger in the wind exercise” and subject to SEC enquiries.",
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      "text": "Only one display room is listed in Sydney, a CSTE branded showroom, and only two in Melbourne, despite these being high population areas. With competition increasing, CSTE appear to be falling behind its competitors on a real, targeted footprint basis.",
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      "text": "It is difficult to assess CSTE’s commercial relationship footprint in Australia; its second largest market. There appears to be a significant lack of reselling agents:",
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      "text": "20 https://www.sec.gov/Archives/edgar/data/1504379/000117891317000754/zk1719670.htm",
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