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  "documentTitle": "SMART Global Holdings, Inc. (SGH)",
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  "authorName": "Wolfpack Research",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-25 00:00:00",
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  "notes": "The slide presents a bearish outlook, contrasting the firm's projections against sell-side consensus estimates.",
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      "text": "When combined with the negligible net income produced with realistic margin expectations for SMART Brazil (and SGH as a whole), the Company goes cash flow negative as soon as 2Q20.",
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      "text": "Cash Flows from Operations: -$8.3M",
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      "text": "Note that the estimates for SGH's Q4 2019 (ended August 31, 2019) net income are well below the sell-side consensus of $12.4 million on a GAAP basis, and $15.9 million on a non-GAAP basis and reflect our belief that the rebound in SGH's earnings won't happen.",
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      "text": "Here's where the inventory build required to meet the revenue expectations shown above comes into play. When combined with the negligible net income produced with realistic margin expectations for SMART Brazil (and SGH as a whole), the Company goes cash flow negative as soon as 2Q20. Here are our cash flow projections:",
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      "text": "Using the consensus revenue estimates (which, again, we believe to be far too optimistic) together with the gross margins and OpEx structure shown above, this model produced the following GAAP and non-GAAP net income numbers:",
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      "text": "“SGH Consensus Overview” via Bloomberg LP, accessed September 23, 2019 — Footnote 14",
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