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  "docSlug": "8add3011762c",
  "documentTitle": "Caesarstone Ltd. (CSTE)",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2017-06-15 00:00:00",
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  "notes": "This slide functions as a 'villain critique' or 'fraud exposure' document, systematically dismantling company claims.",
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      "text": "Increased average selling prices do not reflect ground level pricing, which we have found to be decreasing, and excessive volume increases do not correspond to the consensus of the CSTE reseller agents we contacted.",
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      "text": "Our channel checks with Lowes's Customer Service confirm the Transform™ product is not available at Lowe's stores as of the date of this report, nor is any other CSTE product.",
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      "text": "Physical channel checks into Lowe's stores and a review of their online catalogue confirms that no CSTE product is available for purchase at any Lowe's store as of the date of this report. Meanwhile, Lowe's is stocking what appears to be an increasing catalogue of products from CSTE competitors Silestone.",
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      "text": "There are further concerns over the Transform™ product if it ever enters the market on a large scale basis. An experienced industry contractor has advised he would be hesitant to fit the product as the thin quartz layer is likely susceptible to wear and tear and cracking, and overlayed on top of old fittings, which are susceptible to rot and pungent stale water, causes smells near sinks6. The transform product is not a permanent solution.",
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      "text": "Caesarstone claim to have high quality products. Not only was this disproven by Sprucepoint Capital's work7, but also now in CSTE's own revenue growth and margins8. In CSTE's own conference, management were unable to explain how the growth occurred. Management could not explain how there was an increase in Ikea sales.",
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      "text": "The SEC issued a request for further information to clarify a number of ambiguous statements in CSTE's 2015 20-F, specifically in regards to revenue movements (including FX and average selling prices) and aggregated operating segments.",
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      "kind": "paragraph",
      "text": "CSTE's statements about average selling prices are contradicted by their customers' advertised selling prices.",
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      "kind": "paragraph",
      "text": "It appears, that the company failed to inform Lowe's of this latest development or CSTE lack the foresight to communicate with their end-customers effectively to any material sales.",
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      "text": "Management's address of revenue variance factors do not corroborate with our channel checks.",
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