Feb. 19 at 2:16 PM
$DY $FYBR
Short report from Spruce Point:
Spruce Point issues strong sell opinion on Dycom, faces 35%-55% LT downside
Spruce Point Capital Management, LLC, a New York-based investment management firm that focuses on forensic research and short-selling, issued a detailed report entitled, "Too Close A Connection", that outlines why the firm believes and estimates that shares of Dycom Industries (DY), face up to 35% - 55% potential long-term downside risk, or
$78.50 -
$113.50 per share.
Spruce Point argues that Dycom's clients are under pressure and consolidating with "aggressive" cost savings goals, and thinks investors should closely scrutinize Dycom's dealings with Frontier Communications (FYBR). The firm believes Dycom's financial reporting exhibits many hallmarks of increased financial stress, its margins may be difficult to expand and may be enhanced by "aggressive" tactics, and says there are "reasons to be concerned" with Dycom's Chief Accounting Officer and a recent Board appointment.
