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  "documentTitle": "Twist Bioscience (TWST)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
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  "presentationDate": "2022-11-15 00:00:00",
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  "notes": "The slide uses a rhetorical question to frame the discrepancy in capex as a potential red flag.",
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      "kind": "paragraph",
      "text": "Previous filings state that Twist spent only $9.9MM on lab equipment in 2020 – yet now it suddenly needs to spend 8X in Oregon? In just the last four quarters, Twist appears to have spent double on lab pp&e vs. what it spent in its entire history since 2017. Until 2020, Twist’s total capex requirement was a mere $5-10MM per year.",
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      "text": "Which then raises the obvious question – how is Twist possibly stuffing $75MM of lab equipment into its Oregon facility, when it required only a small fraction of this spend for its primary manufacturing base in California?",
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      "text": "Despite the lack of detail around where the capex spend is going, Twist’s SEC filings make one critical fact clear: the term capex – including the $90-100MM projected for 2022, refers strictly to “purchases of laboratory property, equipment, and computers.”",
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      "text": "2021 10k, filed Nov 23, 2021\nInvesting activities\nIn fiscal year 2021, our net cash provided by the investing activities was $156.2 million primarily as a result of net impact of purchases and maturity of investments of $183.7 million and purchases of laboratory property, equipment and computers of $27.1 million. In fiscal year 2020, our investing activities used net cash of $114.7 million. The use of net cash resulted primarily from the net impact of purchases and maturity of investments of $104.8 million and purchases of laboratory property, equipment and computers of $9.9 million.",
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      "text": "Source: Capital IQ data;; Twist SEC filings",
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      "text": "Capital expenditures table showing values from 2016 to LTM 6/30",
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