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  "documentTitle": "GTT Communications, Inc. (GTT)",
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  "authorName": "Wolfpack Research",
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  "presentationDate": "2019-06-06 00:00:00",
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  "notes": "The slide uses expert testimony and competitor insight to build a bearish thesis on GTT's operational health.",
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      "text": "It is clear to us that GTT's sales reps are fighting an uphill battle for organic growth.",
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      "text": "Judging by the comments above as well as management's 70% markdown to the carrying value of Interoute's customer lists... it is clear to us that GTT's sales reps are fighting an uphill battle for organic growth.",
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      "text": "As part of our due diligence, we spoke to a former GTT Regional VP. When asked about GTT's churn rate. He said that, \"They are having a big problem there, they can't outsell their churn, and that was a problem a year and half ago and they can't provision right now to get things installed.\"",
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      "text": "Since the acquisition of Interoute, GTT's underlying business has continuously deteriorated. GTT does not generate organic growth and without organic growth, we believe GTT will be unable to cover its $200+ million of annual interest expense in 2019.",
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      "kind": "paragraph",
      "text": "GTT's management has stated many times that the company needs to add 50 to 100 additional productive sales reps... The problem is that finding, hiring, training and retaining 50 to 100 sales reps... will be both difficult and expensive.",
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      "text": "\"If you're coming up on a contract, they are holding a gun to the head of their customer...\"",
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      "text": "\"[The hardest part of this business] is, by far and away, sales. It's the ability to hire a sales force, train them, retain them, motivate them...\"",
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      "text": "\"They are having a big problem there, they can't outsell their churn, and that was a problem a year and half ago and they can't provision right now to get things installed.\" — Former GTT Regional VP. \"If you're coming up on a contract, they are holding a gun to the head of their customer... it's ostracizing their customers like crazy and as a result, they are losing revenue and they are losing trust with customers and it's a really big issue.\" — Former GTT Regional VP. \"[The hardest part of this business] is, by far and away, sales. It's the ability to hire a sales force, train them, retain them, motivate them, keep them focused, promote them, give them a career path. It's an awful job, it's an outbound, tele-sales model, where you're making 100 cold calls per day to people that don't want to talk to you. And that's a really hard thing to do.\" — GTT Competitor.",
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