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  "docSlug": "1c9c0f306991",
  "documentTitle": "Automatic Data Processing (ADP) (ADP)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2017-08-17 00:00:00",
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  "notes": "Uses a 'preempt rebuttal' style to dismantle specific management claims.",
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      "text": "ADP is not achieving its structural margin potential across multiple client verticals (likely including SMB).",
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      "text": "“ADP has a large international business”",
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      "text": "“Unlike Paychex, only a minority of ADP’s business is SMB”",
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      "text": "EBITDA margin: 45%",
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      "text": "Ultimate Software expects to achieve ~35% – 40% operating margins when it reaches scale and as growth decelerates from ~20%+ per annum — Ultimate Software",
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      "text": "(1) Ultimate most recently affirmed this perspective at the Morgan Stanley TMT conference on March 1, 2017. (2) http://www.ngahr.com/ar16 (3) https://www.pi-ag.com/pi-ag/investor-relations-en/financial-statements",
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      "text": "Excuses for Lower Margins Don't Add Up",
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