{
  "docId": "019f6b8f-4c74-71ab-b49c-80a5dc659c02",
  "docSlug": "jarvis-outerbridge-comtech-presentation-november-2021",
  "documentTitle": "Outerbridge Comtech Presentation November 2021",
  "authorId": "outerbridge-comtech-presentation-november-2021",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2021-11-01 00:00:00",
  "orientation": null,
  "aspectRatio": null,
  "pageNumber": 29,
  "pageCount": 101,
  "prevPage": 28,
  "nextPage": 30,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "Uses a quote from Mike Porcelain to establish the 'undervalued' baseline, then contrasts it with the financing terms and a list of failures.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019f6b8f-4c74-71ab-b49c-80a5dc659c02/29",
  "deckHref": "/decks/019f6b8f-4c74-71ab-b49c-80a5dc659c02",
  "deckJsonHref": "/decks/019f6b8f-4c74-71ab-b49c-80a5dc659c02.json",
  "deckAnchorHref": "/decks/019f6b8f-4c74-71ab-b49c-80a5dc659c02#slide-29",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.4,
        "x": 0.05,
        "y": 0.68
      },
      "kind": "callout",
      "text": "Why did the Board undercut its own perceived undervaluation of the stock during negotiations? Why now?",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9aa9d8ff-9aac-46d5-b7dc-df5d44048de2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.12,
        "x": 0.55,
        "y": 0.15
      },
      "kind": "image",
      "text": null,
      "attrs": null,
      "subkind": "headshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8209a9c8-c9cb-4a50-941b-a9d0feb3d6a0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.4,
        "x": 0.05,
        "y": 0.38
      },
      "kind": "list",
      "text": "Excessive cost of capital — the 6.5% coupon rate is almost 3x the most recently reported cash borrowing rate of 2.4% through the Company's credit facility, of which $350 million is available",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "060ce38c-61da-495e-9dbb-6517e2cd45fa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.4,
        "x": 0.55,
        "y": 0.45
      },
      "kind": "list",
      "text": "Long term TSR underperformance\nFailed TCS acquisition\nFailed Gilat acquisition\nDilutive PIPE Transaction and Vote Buying Scheme\nBoard Rewarded Poor Performance with Promotion to CEO\nAppointed to the Board without Shareholder Approval",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2d80517a-8b25-4375-afa5-86ab240dd1ab",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.4,
        "x": 0.05,
        "y": 0.28
      },
      "kind": "list",
      "text": "No premium — similar convertible transactions often carry conversion premiums of between 20% and 50% to market prices; and",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c852496d-e60d-4192-ad12-880d15d972e2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.4,
        "x": 0.05,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "How exactly did the Board serve the interest of common shareholders by agreeing to such an egregious financing arrangement that features:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3d538d47-6b7b-41fd-87c7-24dbe4b02dcf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.4,
        "x": 0.05,
        "y": 0.55
      },
      "kind": "paragraph",
      "text": "Months earlier, when the stock price was trading between $23 and $27, Management expressed publicly its view that the stock was undervalued.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6fa719ce-0c9b-4e2c-a4ac-a8ec24af690b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.28,
        "x": 0.68,
        "y": 0.15
      },
      "kind": "quote",
      "text": "“I think the one thing we all agree on is that the stock is undervalued and should be trading in the $40s.” – Mike Porcelain, COO and CEO-elect, Comtech, Singular Research Summer Solstice, June 24, 2021",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8311b330-61d0-43ea-94c4-6d6d9794aec4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.6,
        "x": 0.02,
        "y": 0.03
      },
      "kind": "title",
      "text": "The Board Undercut its Own Perceived Valuation of the Stock Price",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ffd6d254-446d-4e3d-85eb-6f7c0d88ec87",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.4,
        "x": 0.55,
        "y": 0.38
      },
      "kind": "title",
      "text": "Porcelain’s History of Failures and Poor Judgement",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6653ee83-4a60-49f6-be82-7ecabd05e61c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "ceo-quote-contradiction",
      "slug": null,
      "matchId": "e1e50de0-208c-41d6-ab56-126e27daefb2",
      "evidence": "Contrasting CEO quote about undervaluation with board's dilutive financing actions.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 41,
      "from": 13,
      "beatId": "45e6c166-dec8-486d-b334-331bf6bb5442",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Peer Benchmark",
      "beatSlug": null,
      "evidence": "The document uses peer benchmarks to illustrate Comtech's underperformance.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}