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  "documentTitle": "SMART Global Holdings, Inc. (SGH)",
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      "text": "When the company went public as SMART Global Holdings in 2017, continued growth and opportunity in the Brazilian memory business was pitched as the investment thesis for SGH.",
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      "text": "Similarly, we see no reason for significant R&D expense related to packaging these chips – as an outsourced fabricator, SMART likely receives the design specs directly from its OEM customers. As a result, most of SMART Brazil’s gross profit should flow through the income statement to operating profit, driving SGH’s overall operating margin higher, with the opposite being true when Brazil revenues or gross margins fall.",
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      "text": "The Brazilian business remained front and center in all investor pitches through 2017, 2018 and well into 2019. Even after publication of the new PPB requirements, SGH’s investor presentation for its fiscal Q3 2019 (ending May 31, 2019) reflected management’s hopes that its government influencers in Brazil could stop the new rules from going into effect on July 1, still including a slide titled “SMART Leveraging the Growth in the Brazil Memory Market”:",
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      "text": "With the OEM deals in place, demand only depended on how many products the OEM customers expected to sell in Brazil and the percentage of Brazilian-made memory required to qualify for the PPB benefits, meaning there should be comparatively less SG&A expense required to grow volume.",
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      "text": "Source: SGH Investor Presentation, September 13, 2017, slide 6",
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      "text": "A Salesman's Pitch Changes Tone",
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