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  "documentTitle": "SMART Global Holdings, Inc. (SGH)",
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  "authorName": "Wolfpack Research",
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  "presentationDate": "2019-09-25 00:00:00",
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      "text": "The loss of the PPB will be financially devastating for SGH. By downplaying the recent developments in Brazil, management has avoided serious questions about the long-term viability of SGH.",
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      "text": "On SGH's fiscal Q3 2019 earnings call... Ajay Shah made the following statement, which we believe to be an attempt to redirect investors by downplaying the importance of SMART Brazil, by highlighting some other 'fun samba stuff' in their business:",
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      "kind": "paragraph",
      "text": "His fears became a reality just three weeks later. We agree with Nunes... The loss of the PPB will be financially devastating for SGH.",
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      "kind": "paragraph",
      "text": "Shah's patronizing statement... is in sharp contrast with those made by SMART Brazil's CEO, Rogério Nunes... 'This reduction of the Import Tax diminishes the protection of the national industry...'",
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      "kind": "paragraph",
      "text": "The new PPB guidelines were published on June 26, 2019... When asked how the new rules would impact SGH's business, Chairman/CEO Ajay Shah said, 'And in our conversations with customers that effectively -- the math would come back to effectively the same kind of level of businesses we do today...'",
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      "text": "It is extremely unusual for memory producers to outsource assembly of memory chips. The primary manufacturers of memory – Samsung, Hynix, Micron – largely carry out these processes in-house.",
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      "kind": "quote",
      "text": "'Brazil is now going to in our forecast the top one-third of the business... I understand that everyone was kind of fascinated with the local content requirements in Brazil and all of the fun samba stuff that comes from it.'",
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      "text": "\"And in our conversations with customers that effectively -- the math would come back to effectively the same kind of level of businesses we do today, that's -- I know it's a somewhat high-level explanation, but to take you any deeper would require spreadsheets...\" — Ajay Shah, Chairman/CEO. \"This reduction of the Import Tax diminishes the protection of the national industry and, if it comes along with the reduction of the tax benefit that we have today in the Computer Law, it may be big enough that there is no longer interest of a company, multinational company to produce in Brazil\" — Rogério Nunes, CEO of SMART Brazil.",
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      "text": "10 “SGH Q3 2019 Earnings Conference Call” via Bloomberg LP, accessed September 12, 2019\n11 http://www.telesintese.com.br/reducao-do-imposto-de-importacao-pode-provocar-fuga-da-industria-de-tic-alerta-empresario/ (Translated)",
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      "kind": "title",
      "text": "A Lie Has Speed, but Truth Has Endurance",
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