PetIQ, Inc.
A Flea and Tick Infested Investment
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Research Overview

INDEX:
S&P 500
Sector:
Healthcare
Position:
Short
Date:
Apr 30, 2019

After conducting a forensic financial and accounting review, Spruce Point believes PetIQ, Inc. (Nasdaq: PETQ), a recent JOBS Act IPO, faces fundamental challenges in its core pharmaceutical distribution business, unrealistic growth expectations in its recently acquired services segment, and is operated under a dubious past and questionable management team. Based on our investigation, we estimate 75% to 90% downside risk, or $2 - $8 per share.

The report highlights several key concerns with the company, including:

  • We believe that competition and transparency has led to margin compression
  • We find that the VIP rollout is likely to fail and burn significant cash
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