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  "documentTitle": "Goosehead Insurance, Inc. (GSHD)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-02-16 00:00:00",
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  "notes": "The slide uses a dot plot to visualize the extreme valuation outlier status of GSHD compared to the insurance industry.",
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      "text": "In our opinion, this amounts to grotesque self-dealing.",
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      "text": "P/E Multiples - Insurance Industry",
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      "text": "P/E ratio: 3,984x",
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      "text": "The directors and officers of GSHD collectively own approximately 97.3% of the Class B shares so we are not surprised that they were willing to take on debt and issue dividends when most of the borrowed money ended up in their pockets.",
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      "kind": "paragraph",
      "text": "These Class B shares do not carry all the same rights as Class A shares, but they are entitled to pari passu dividend rights (that’s Latin for equal-footing) so any dividend issued goes in large part to the CEO his family in management.",
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      "text": "As for the shareholding public, they are purchasing GSHD at an eyepopping TTM P/E ratio of 3,984x while, according to data from Bloomberg LP, the average TTM P/E ratio for GSHD’s insurance industry peers is only 20.8x.",
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      "text": "Dividends to Pre-IPO LLC Owners: 3/7/2019 $9,038,000; 7/30/2020 $22,157,000; 7/28/2021 $28,343,000; Total $59,538,000",
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