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AYI: When Does “A Bit of Pressure” Equate to 350 bps? Lowering Price Objective to $89

October 4th, 2018

“We are certainly seeing a bit of headwind in material cost, largely around the commodity metals, steel, aluminum, both of which -- more from a secondary impact of the tariffs. We don't purchase that much steel that are...

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PAA Research's Second Quarter 2018 Lighting Agent Survey

June 28th, 2018

More of the same on the pricing front as structural disruption in the channel continues and agents increasingly question the duration of the led cycle...

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AYI: The Lighting Industry Is Under Siege and Management is Grasping for Straws, Can Tax Reform Be AYI’s Obi Wan?...

January 10th, 2018

“I’m not an economist so I don’t have a crystal ball” Vernon Nagel, Chairman, President, and CEO. Acuity Brands Inc. 1/9/18. 1Q18 earnings conf. call Finally, a...

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AYI: Nowhere to Hide - PAA Research's Fourth Quarter Lighting Agent Survey

December 12th, 2017

PAA Research surveys lighting agents across the country on a semi-annual basis.  The latest survey was conducted in the first few weeks of November.  35 lighting agents responded to our survey.     

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AYI: Time to Turn Out the Lights? The LED Adoption Cycle Could Be Cresting

November 7th, 2017

“We are often asked about the vitality and conditions of the key end markets we serve. We now know that the overall growth rate of the lighting market over the last 2 quarters was essentially flat and even slightly down compared with the...

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AYI: As Management Makes It Up as They Go Along, It’s Becoming Clear This Is No Longer a Growth Company

October 5th, 2017

For some investors and analysts, today was yet another grand exercise in banging your head against the wall, which some have affectionately (or not so affectionately) called short selling.  We recognize why...

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AYI: Product Price Deflation Has Become the Dominant Trend in Lighting - PAA Research's 2Q17 Lighting Agent Survey

June 7th, 2017

There has been a great deal of discussion in the investment community over the past 6-12 months about the slowdown in the lighting equipment industry.  Many investors as well as the lighting equipment...

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AYI: Management Has a Vision, Just Not a Clear One, Lowering Price Objective to $108

April 4th, 2017

Truth be told, we’ve all seen this happen before: A management team gets praised for consistently beating numbers and its “long term vision” for the company during the early stage of a product/economic cycle. ...

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AYI: Time Is on Our Side as AYI Enters the First Phase of “Re-Rating”; Lowering Price Objective to $129

January 10th, 2017

When we first introduced AYI as a short idea approximately 9-months ago, the largest pushback on the merits of our investment thesis related to the perceived quality of the company’s management team. ...

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AYI: Lighting Agent Survey - Pricing Pressure on LED Lighting Products Continues to Mount

December 22nd, 2016

We recently completed a survey of lighting agents across the country. The feedback from our survey confirms our view that: Revenue growth in the lighting industry has started to slow Pricing pressure on LED products...

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AYI: Now the Shot Clock on Growth Is Officially Ticking, Just Ask the Dept. of Energy

October 6th, 2016

Yes, it’s true that AYI does not provide earnings guidance for investors, but the manner in which the company handled its latest earnings release has to be viewed as troubling.  AYI missed by a wide margin on both the top...

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AYI: The Narrative Is About to Change, Time to Get Short

April 26th, 2016

As a firm, we pride ourselves on the rigors of our idea generation process. Rigorous fundamental analysis, in-depth primary research, accounting scrutiny etc. are all hallmarks of our investment process.  However, despite the intensity of our work on any...

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AYI: Can the Company Clear a Higher Bar? Our Short Term Concerns Outweigh Our Long-Term Enthusiasm, Closing Out Long...

January 7th, 2011

Acuity Brands has been our favorite long idea in the industrials complex over the past year.  As a pure-play lighting equipment manufacturer with a growing portfolio of LED products and lighting...

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AYI: Channel Checks Indicate the Company Is Poised to Deliver Another Quarter of Revenue and EPS Upside

October 4th, 2010

Acuity Brands will report 4Q10 earnings on Wednesday, October 6th before the market opens. Based on our checks with approximately 35-40 lighting agents across the country we anticipate the company is poised to...

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AYI: 3Q10 Consensus Revenue Expectations Look Reasonable, Expect EPS Upside in the Form of Continued Gross Margin...

June 29th, 2010

AYI will report 3Q10 results before the market opens tomorrow. We expect the company to deliver inline revenues, but once again top consensus estimates due to better than expected gross margins. ...

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Can AYI's 2Q10 Results Justify the Run-up in the Stock? What Channel Feedback Tells Us - Closing Out Our Long AYI/Short...

March 26th, 2010

Approximately four months ago we introduced a pair trade: long AYI/short HUBB based on our view that AYI shares were poised for mean reversion in stock price performance relative to those of HUBB and...

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Our Expectations for AYI’s 1Q10 Results, the Company Has Plenty of “Dry Powder” Heading Into 2010

March 12th, 2010

This report was originally published on 1/4/10.A few weeks ago we introduced a pair-trade: long AYI/short HUBBbased on our expectation that AYI shares were poised to witness absolute and relative upside following an...

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Shedding Some “Light” On a New Pair Trade Idea: Long Acuity Brands (AYI)/Short Hubbell Inc. (HUBB)

March 11th, 2010

This report was originally published on 12/3/09.We have been long-time admirers of the business models of the leading electrical product manufacturers including: Cooper Industries, Thomas and Betts, Hubbell...

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Current Ideas

WWE

LONG

$65

XOXO

LONG

$37

RLGY

PAIR TRADE

$10

RDFN

PAIR TRADE

$30

AYI

SHORT

$89

ARC

LONG

$5.50

BCO

LONG

$35

ING.PA

SHORT

$35

TRUP

SELL/SHORT

$10

RY

SELL/SHORT

$70

CM

SELL/SHORT

$76

CTC

SHORT

$101

ATGE

SHORT

$15

HCG.TO

SHORT

$0

RON.TO

SHORT

$9

BIG

SHORT

$28

ESI

SHORT

$0

BGG

PAIR - LONG BGG/SHORT TTC

25%

TTC

PAIR - LONG BGG/SHORT TTC

25%

Z

SHORT

$14.00

NA.TO

SHORT

$22

ZU

SHORT

$15

TRLA

SHORT

$20

MCRS

SHORT

$31

APOL

SHORT

$35

OPEN

SHORT

$30

KNL

PAIR - LONG KNL/SHORT MLHR

25%

CSGP

SHORT

$100

GCA

LONG

$8

IPSU

LONG

$20

MLHR

SHORT

$22

LOOP

PAIR - LONG CSGP/SHORT LOOP

40%

THQI

LONG

$35

WPO

SHORT

$275

COCO

SHORT

$0

HNI

SIG

RGR