Spruce Point's Hit List

Spruce Point Management publishes research on short targets. Some of their picks have paid off, but tended to be small caps. the larger targets have climbed higher and higher. In my opinion, this doesn't invalidate their work. "Zombie" companies that are dead at higher interest rates or tighter credit markets have been some of the best performing stocks. The Federal Reserve and USG lfooded the markets with liquidity and as a result, taking on insane risk to the upside was the best stratery. Now I think the reverse will play out: taking insane risk to the downside will pay off.

Every chart below has a report on their site. Some research is a couple of years old, in some cases may no longer be valid. In other cases, I believe the thesis is intact, but requires a recession and bear market to reveal underying weakness. Notable: Cintas reports earnings in two days.