SignetJewelers:'AllThatGlittersIsNotGold'+Q12018

EarningsPreview
MustRead | May22,20179:45AMET
by:ZanderRosenbluth

Direction:Short Timeframe:612months ExpectedGain:54%

Summary

Signetisnotajewelrycompany.Itisasubprimeconsumerlenderthathappensto
selljewelry!

Signetusesrecencyaccountingforitscreditportfolio,whichunderstatesthetrue
delinquencyrateofthecompanyscreditportfolio.

SignetscreditportfoliohasanegativeROA.

ActivistshareholderpraisedSignetsstrategicreviewofthecreditportfolioandnow
theyvesold~72%oftheirstakebeforethereviewhasconcluded.

Managementguidedto$7.007.40inEPSforFY2018Ithinktheyllhaveahard
timecracking$5.00.Tangiblebookvalueis~$22/share(bookvalueis~$36/share).

WhyfiscalQ12018couldbeSignet'smostimportantearningsreleaseyet...

CompanyDescription:

SignetJewelersLtd.("Signet"orthe"Company")(NYSE:SIG)isaspecialtyretailjeweler
withstoresintheUS,UK,Canada,andPuertoRico.SignetisincorporatedinBermuda
andheadquarteredinAkron,Ohio.AsofJanuary28,2017,theCompanyoperated3,066
storesand616kiosks.Thebusinessismanagedasfivereportablesegments:theSterling
Jewelersdivision(61.3%ofsalesand93.8%ofoperatingincome),theZaledivision,
whichiscomprisedoftheZaleJewelrysegment(24.2%ofsalesand8.1%ofoperating
income)andthePiercingPagodasegment(4.1%ofsalesand1.5%ofoperatingincome),
andtheUKJewelrydivision(10.1%ofsalesand6.0%ofoperatingincome).TheNorth
AmericanstoresarelocatedinmallsandoffmalllocationsandconsistofbrandslikeKay
Jewelers,Zales,Jared,andotherregionalmallbasedbrands.TheUKdivision'sstores
includebrandssuchasH.SamuelandErnestJones,whichtendtobelocatedinmajor
shoppingmalls.SignetalsoownsadiamondpolishingfactoryinGaborone,Botswana,
andhasestablishedadiamondliaisonofficeinIndiaandadiamondtradingofficeinNew
York.Signet'sfiscalyearendsontheSaturdaynearesttoJanuary31(i.e.FY2018refers
tothe53weekperiodendingFebruary3,2018).

Source:Companyfilings

Background:

TheSignetthesishasalittlebitofeverythingwhenyoutakealookunderthehood.There
aremultiplewaysfortheshortthesistoplayout(anddespitethestock'sdecline,Istill
believethisstoryisfarfromover).Aboutayearandahalfago,Ibeganlookinginto
companiespromotinginhousefinancingforconsumers(asopposedto3rdpartylenders).
Manyofthesecompanieshadseentheirtopandbottomlinegrowdoubledigitsinrecent
years.InaZIRPenvironment,companieshaveessentiallybeendrivingsalesand
earningsgrowththrough"cheap"or"easy"credit.Whenacompanyfinancesitsown
sales,andessentiallybecomesanonbanklender,thecreditworthinessoftheconsumer
becomesadiscretionarydecisionbymanagement.Thisalwayssetsoffaredflag,
especiallywhenmanagementcaneasilyrelaxlendingstandardsinordertobeatanalyst
estimatesandachieveindividualperformancetargets.Atthesametime,Ihadalsobeen
lookingatspecialtyretailerswhosestoreswereprimarilybasedinmalls,wherefoottraffic
hasbeendecliningandhascontinuedtodoso.Thesetwothemesalignperfectlywhenit
comestoSignet.

StrategicReview:
WhenSignetreleaseditsQ12017earningsonMay26,2016,thecompanyalso
announcedthattheBoardofDirectorshad"authorizedmanagementtoconducta
strategicevaluationofthecompany'screditportfolio."Signetalsoannouncedthatithad
retainedGoldmanSachs(NYSE:GS)asthecompany'sfinancialadvisorforthestrategic
review.

However,whenyoureadthetranscriptfromtheearningscall,managementwaseither
naveorbuyingtime.AsyoucantellfromthefollowingexcerptfromSignet'sCEO,Mark
Light,itseemsthatmanagementreallyhadnoideawhattheyweredoingandwhat
exactlytoexpect:

Andyourquestionaboutourpriorityasitrelatestothecreditreviewisand,
Lindsay,you'renotgoingtolikethisanswer,butshareholdervalueandoperating
profitarebothhandinhand.Soit'saboutboth.Andwhenwelookatthis,we're
goingtolookatitholistically.Whatoptionsdowehave?Whatalternativesdowe
havethatcanhelppotentiallyenhancetheprofitabilityand/ortheshareholdervalue?
Andwebelievethattheygohandinhand.Soarethereopportunitiesforthird
parties?Cantherebe?That'swhattheanalysisisallabout.We'relookingtosee
whataretheopportunitiesoutthere?Andwehavetotakeadeeperdive,weneed
timetomakethosedeterminations.Butwehaveanunderstandingwhatwe'regoing
todoismaketherightdecisionforourbusinessmodel,tomaketherightdecision
that'srightforourshareholdersandwhat'srightforthecompanyasawholeandour
customers.Andwehavetotakeallofthoseelementsintoourdecisionmaking
process.Andwe'llkeepyouuptospeed,Lindsay.Wejustwantedtoannounceto
everybody,becausewedidhireGoldmanSachswhohasalotofexperience,andto
dothisthoroughanalysis,wewillbetalkingtodifferenttypesofconstituentstoget
thisanalysisdone.Andwewantedtomakeyouandeverybodyelseawarethat
we'redoingthatnow,butwewillkeepyouuptospeedoncewehavemore
informationtotalkmoreintelligentlywithmoredata."

Source:SignetQ12017earningscallBloomberg

WhathappenedtotheActivistShareholder?

Awellknownactivistshareholderfirstdiscloseda7.8%ownershipstakeinSignetina
13DfilingonJanuary24,2014.Itisnotpubliclyknownwhetherornottheshareholder
pushedtheBoardtoinitiatethestrategicreview,buttheactivistdid"commend"the
Board'sactionstoundertakeastrategicevaluationofthecreditportfolioinaMay27th,
2016,amended13Dfiling:

Inthesameamended13DfilingonMay27th,2016,thesameshareholderdisclosedthat
theyhadincreasedtheirownershipstaketo8.3%.

Fastforwardtotodaythestrategicevaluationofthecreditportfoliohasyettoconclude
oryieldanysortofresult.However,theactivistshareholderhassold4,724,856shares,or
~72%oftheirownershipstake,sincetheyapplaudedthecompany'sstrategicreview.
Whatchangedandwhatmightthetopshareholder'sactionssayabouthowtheyview
Signet'screditportfolio?

Source:SECfilings

Signet'sToxicCreditPortfolio:

OneofthelargestrisksonthelongsideisthecreditriskassociatedwiththeSignet's
creditportfolio.It'sabsolutelytoxicandlikelyhasanegativeROA.SIG'squestionably
performingreceivablesaccountfor~75%ofSignet'sbookvalueand~120%oftangible
bookvalue.Anyimpairmenttothecreditportfoliocouldsignificantlyimpacttheequity(and
thebalancesheet,ofcourse)andthereisrisk,alotofit.AsidefromSignet'scredit
portfoliobeing21.2%)delinquent(pastduereceivablesasa%ofgrossreceivables),the
companyusesaveryrareaccountingmethodforportfolioagingcalledthe"recency"
method.Virtuallyalllendersusecontractualaccounting.

Source:Companyfilings
Source:Companyfilings+internalestimates

Inthiscase,thenumbersspeakforthemselves.Thecompany'stotaldelinquencyrate,in
additiontoNonPerformingLoans(NPLs)andNetChargeOffs(NCOs),hasbeen
consistentlyrisinginrecentyears.Thescarypartisthenumbersareevenworsethan
theylook.Toaddinsulttoinjury,thesenumbersarecalculatedonarecencybasis,sothey
arelikelyunderstatedbyaprettyheftymargin.Renownedjournalist,Gretchen
Morgenson,recentlypointedoutthatrecencyaccountingtendstounderstate
delinquenciesbyapproximately50%.ForsomecontextonthecreditqualityofSignet's
customerbase,thelastreportedaverageFICOscoreforcompany'screditportfoliowas
661attheendoffiscalyear2017.

TheonlywaySignetcouldimproveitscreditsituationistosignificantlytightenlending
standardsandpullbackonfinancingalltogether.Ofcourse,thisallcomesattheexpense
ofboostingthecompany'stopandbottomline.ItshouldbenotedthatmostofSignet'sin
housefinancingisdonewithintheSterlingJewelerssegment(KayandJared),whilethe
Zalessegmentusedathirdpartylender(AllianceDataSystems(NYSE:ADS)).Zales'
creditpenetrationrateis~40%,comparedtoSterling's62%inhousepenetrationrate.
ThereasoncreditpenetrationissignificantlylowerintheZalessegmentisbecauseADS
hasstricterlendingstandards.However,ZalescanalsoopttousetoSterling'sinhouse
financingarmasa"secondlook"lender(i.e.ifacustomerdoesn'tqualifyforfinancing
throughADS,Sterlingwilllikelylendtothatcustomer).

DuringSignet'sQ42017earningscallonMarch9th,Signet'sChairmanstated:"[we]are
currentlydeeplyengagedinnegotiationssupportedbyGoldmanSachstooutsourceour
creditbusiness.Afterevaluationofthevariousoptionsavailabletothecompany,
outsourcingisourpreferredoption.Letmerepeat,outsourcingisourpreferredoption."In
myopinion,thiswasthecompanyadmittingtoshareholdersthatitwasunabletosellthe
creditbookoutright(likelybecausenopotentialbiddercouldgetasolidgrasponthetrue
underlyingperformanceoftheportfolio).

AnotherideathatothershavefloatedisthatSignetcouldsecuritizeitsreceivables.My
simpleresponseisthatitishighlyunlikely.I'mnotasecuritizationexpert,butthenumbers
herearenothardtounderstand.First,Signetalreadysecuritizesitshighestquality
receivablesina$600millionABSfacilitythroughJPMorgan(NYSE:JPM).Theadvance
rateontheABSfacilityis60%.Witha60%advancerate,thatmeans$600millionof
receivablesarecollateralizedby$1Bworthofreceivablesonthecompany'sbalance
sheet.Basedonthenumbersfromthemostrecentfiscalquarter(Q42017),thatleaves
$858.1millionworthofloansthatcouldbesecuritizedinanewABSfacility.However,the
remainingloansarealllikelythelowercreditqualityreceivablesthathaveatleasta21.2%
delinquencyrateusingtherecencyaccountingmethod(whoknowswhatthetrue
delinquencyrateisundercontractualaccounting?).Thatleadstothequestionofwhat
kindofadvancerateSignetcouldreceiveforitslowerqualityreceivables?Andmore
importantly,whatinterestratewouldanABSlenderofferthecompany?Certainlynotthe
1.5%2.0%interestrateSignetreceivedfromJPMorganforitshigherqualityloans.

Recencyvs.ContractualAccounting:
Therearetwoprimaryaccountingmethodsfordeterminingwhenaloanisdelinquentand
howacompanycalculatesloanlossprovisions:contractualandrecency.Thecontractual
methodisfairlystraightforward.Underthecontractualmethod,delinquencyiscalculated
bythenumbersofpaymentsthatweredueandacustomerhasfailedtopay.For
example,ifImissed2consecutivemonthlypaymentsonmycarloan,myloanwouldbe
considered60dayspastdue.However,ifduringthe3rdmonth,Imakemynormal
monthlypayment,inadditiontothepreviousmonth'spayment,myloanisstillnotcurrent.
Inotherwords,justbecauseIwasabletomakealatepayment,itdoesn'tmakemyloan
"current."Mostcompaniesusethecontractualmethodbecause,astheFederalReserve
states,"ingeneral,thecontractualmethodprovidesamoreaccuratereflectionofloan
performanceand,therefore,isthepreferredmethodology,especiallyfromthestandpoint
offinancialstatementtransparencyandpublicdisclosure."

Incomparison,undertherecencymethod,myloanwouldbeconsideredcurrentbecauseI
wasabletomakeaqualifyingpayment.UnderSignet'srecencyagingmethod,myloanis
consideredcurrentaslongasImakeaqualifyingpayment(which,asdefinedbySignet
canbenolessthan75%ofthescheduledpayment).ToquoteJamesGrant(thatof
Grant'sInterestRateObserver,notSignet'sHeadofInvestorRelations),"Alaymanmight
callitforgiving."ImightcallitslightlydeceivingtotheaverageJoe,despitethefact
recencyaccountingispermittedunderGAAP.

JusthowunderstatedareSignet'sdelinquentreceivables?Welikelywon'tknowthe
answertothatuntilSignetchoosestodisclosethatinformation.EventheSECrecently
askedthecompanywhatitsdelinquentreceivableswouldlooklikeifitusedcontractual
accounting.Someauditorshaveevenrefusedtosignoffonacompany'sfinancialsifthey
userecencyaccounting.In2014,KPMGresignedasWorldAcceptance's
(NASDAQ:WRLD)auditorbecause"[WorldAcceptance]didnothaveadocumentedpolicy
thataddressedtheestablishmentoftheallowanceforloanlosses,includingthe
assumptionsunderlyingtheallowanceforloanlossesandhowmanagementwouldreview
andconcludeontheappropriatenessoftheallowanceforloanlosses,"nordidit"havea
controltoassesswhethertheaccountingtreatmentofrenewalswasinaccordancewith
U.S.generallyacceptedaccountingprinciplesandwhatimpact,ifany,renewalswould
haveontheestimateoftheallowanceforloanlosses."

Source:WRLD8KfiledonSeptember9,2014

WhatwastheChairmanoftheBoard'sexplanationduringtheQ42017earningscallfor
whySignetusesrecencyaccounting...?
 Inreality,therecencymethodactuallyenablescustomerstobettermaintain
theircreditrating.Andweare,afterall,interestedinservingourcustomers."

Iwaspersonallybaffledbythisstatement.IthinktheSECandCFPBwouldbeinterested
intakingalookatSignet'slendingpracticesfollowingtheChairman'sstatement.

ESPs:

Onethingthemarketdoesn'trealizeisthatSignetalsodrivesearningsthroughExtended
ServicesPlans(ESPs)andwarranties.Thisadditionalrevenueisoftenfinancedand
includedinreceivablesaswell.Ibelievethemarketdoesnotrealizejusthowmuch
revenueSignet'sESPsmakeupasa%oftotalsales.WhileSignetdoesnotdisclosethe
profitmarginontheseplans,itislikelytheyhaveadecentcontributiontothecompany's
operatingEPS,inmyopinion.DuringFY2016year,Signetrecognized$347.8millionin
ESPrevenue,or5.3%oftotalsales.DuringFY2017,Signetrecognized$396.5millionin
ESPrevenue,or6.2%oftotalsales.

CannibalizationfromZalesAcquisition:

IbelievethemarketismissingthecannibalizationriskthatwasaccentuatedwiththeZales
acquisition.TheZalesintegrationhasnotplayedoutinawaythatI'msuremanyinvestors
hadhopeditwould.Alotofacquisitionslookgreatonpaperwhenthey'reintheworks,
especiallywhenyou'llbeabletoclaimthetitleofthe"world'slargest"retailerofdiamond
jewelry.However,onethingIbelieveSignetmissedwhentheyacquiredZaleswasthe
potentialcannibalizationofitslegacyKayandJaredsales.Haveyoueverunderstoodwhy
KayandZalesstoresareoftenlocatedrightneareachotherinmostmalls?Yeah,me
neither.

Wehavenowreachedthethreeyearanniversaryoftheacquisition.Whentheacquisition
closedinmid2014,theZalessegmenthadanoperatingmarginof2.5%vs.Signet's
13.8%.Accordingtomanagement,synergiesfromthedealhavebeengreaterthaninitially
expected,yetZales'operatingmarginsweresupposedtoreachmidtohighsingledigits
bynow.Wellnowwe're3yearsoutandthesynergieshavebarelymovedtheneedleon
Zales'operatingmargins.Atthetimeoftheacquisition,managementhadstatedthat
"operatingefficiencieswilldrivemarginandexpensereductionopportunitiesanddrive
valuecreation."ThemostrecentZalesdevelopment,andperhapsoneofthemost
alarmingforinvestors,isthatSignetreportedanegative3.9%compsnumberforZales
duringQ42017.Thiswasthefirstnegativeholidayseason/Q4compsnumberforZales
since2010.
SignetisNotaJewelryCompany:

Signetismostcertainlynotapureplayjewelrycompanyanditcertainlydoesnotdeserve
tobevaluedlikeone.IliketocallSignetabankthatjusthappenstoselljewelry.Today,
Signetstilltradesat1.7xbookvalueand~2.7xtangiblebookvalue.DuringFY2017,
Signetfinanced62.0%ofitssalesintheSterlingJewelerssegment(vs.61.5%duringFY
2016),whichincludesKayJewelers,Jared,andsmallerregionalbrands.Thepercentage
ofsalesfinancedhasbeengraduallyincreasinginrecentyears.

Whatarethecatalysts?

ItisverylikelythattheQ12018earningsreleaseonMay25thcouldserveasasignificant
catalyst.WhatI'velikedaboutthisshortisthattherearemultiplewaystowinthetrade
(somehavealreadyplayedout,butIthinktheworstisyettocome):

Furthersamestoresales,revenue,andearningsdeclines.

Signetprovidingcontractualaccountingmetrics,inadditiontotheirrecencymetrics
(WRLDdoesthis).

NegativelyrevisedoutlookforFY2018(Signet'sguidancetrackrecorddoesn'thavea
wholelotofcredibilityafterlastyearseechartbelow).

FY2018Comps/EPSguidancethisisthefirsttimeSignetdidnotprovidequarterly
guidanceinanearningsrelease.However,itislargelyassumedthatQ12017comps
wouldbeverypoor.ManagementdidnotprovideafirmrangeforFY2018comps
(guidedto"lowtomidsingledigit"compdeclines)and$7.007.40EPSrange(vs.
streetestimatesof$7.65).

Increasedloanlossprovisions.

Formalendtothestrategicreviewprocess(basicallyadmittingthecompany'sinability
tosellormonetizethecreditportfolioinawaythatwillbeaccretivetoEPS).Most
strategicreviewsareformallyterminatedafterafullyearifthereviewdoesnotresultin
anysortoftransaction.The12monthmarkisthismonth(May2017).

AdditionalnegativePRthatcouldjeopardizeSignet'sbrandvalueandreputation.
ButSignetLooksCheap!

ThemainbullargumentsI'veheardmostoftenisthatthestockischeap,theygenerate
freecashflow,andbecauseSIGisthelargestretailjewelerintheworld,theyhavestarted
tofacelesscompetitionasmomandpopjewelershavecloseddown.I'mnotdisputing
thesearguments,butasIhavelaidout,thereismuchmoretothecompanywhenyou
lookunderthehood.Withregardtothefreecashflowdebate,SignethighlightedinitsQ4
2017earningsreleasethatfreecashflow(FCF)nearlydoubledinFY2017.However,the
companydidnotnotethatFCFdeclined21.4%duringQ42017,themostsignificant
quarteroftheyear(~54%ofEPS).

DoesSignetHaveAnyPotentialUpside?

Signethasalongwaytogobeforeitcanorganicallyrecoversalesandearningswithout
looseningcreditstandardstoanevengreaterextentandrepurchasingawholelotmore
shares.TotalsalesforFY2017weredown5.1%(3.3%onconstantFXbasis).Inmy
opinion,ifSignetistoeventuallybounceback,itwillhavetoprovidemoretransparency
intoitscreditportfolioandwillhavetoweatherthenegativePRstormregardingtherecent
diamondswappingandsexualharassmentallegations.IalsobelievethatSIGwouldlikely
needtoundergoasignificantCsuiteoverhaulforanyturnaroundtobeeffective.

WhileIwouldn'tsaythejewelryindustryisparticularlystrongrightnow,ithistoricallyhasa
CAGRofapproximately34%.However,Signet'sperformanceismoreofacompany
specificissue.WhileTiffany's(NYSE:TIF)isnotaperfectcomparison,itisSignet'sclosest
publiclytradedcompetitor.Yeartodate,SignethassignificantlyunderperformedTiffany's.
Signetisdown~38%YTD,whileTiffany'shasrisen~19%YTD.Inadditiontotheobvious
underperformance,itisimportantnottoforgettheargumentthatthetopandbottomline
haslikelybeenartificiallyinflatedbyoverextendingcredit,inmyopinion.

Q12018EarningsPreview:

Signet'sQ12018earningswillbereleasedonthemorningofThursday,May25th.Despite
Q4accountingfor~50%ofthecompany'sEPS,Iconsiderthisearningsreleasetobe
muchmoresignificant.

1)Managementstoppedprovidingquarterlyguidancelastquarter,likelyduetocomps
beingsouthof10%.Inaddition,retailearningshaven'tbeenstrong,especiallyformall
basedstores.Forexample,Victoria'sSecret(partofLBrands),reportedFebruarycomps
of16%andQ1compsof14%.

2)Iexpectaformalconclusiontothestrategicreviewastheytypicallylastnolongerthan
12months.Uponformalconclusionofthestrategicreview,Ibelievethecompanywill
eithercontinuebusinessasusualorannounceacreditportfoliosale/outsourcing
transactionthatresultsinasignificantimpairmenttoSignet'sreceivables(northof$250
300million).Strategicreviewstypicallylastnolongerthan12months.Eitherway,Iexpect
thecompanywillalsoswitch,oratleastcommencetheprocess,toshifttocontractual
accounting.

3)Iexpectmanagementtomakeanegativerevisiontoguidance,especiallyifacredit
transactionisannounced.

4)Anotherpossibility(althoughlesslikely)isthatthecompanypotentiallywritesdownthe
goodwillfromtheZalesacquisition.Ithasnowbeen3yearssinceSignetacquiredZales
andit'sabouttimetheystoptakingsilly"ITimplementation"adjustmentstoEPSrelatedto
theacquisition.

OutsourcingCreditto3rdPartyLenderEPSScenario:
Sowhatcouldfiscal2018EPSlooklikeifSignetpursuesasale/outsourcingtransaction?
It'snotprettyandit'soneofthereasonswhyIbelievethestockcouldreach$30
sometimeinthenextyearorso.Ifyouaddbacktheeffectofsharerepurchasesand
operatingexpensereductions(duetooutsourcingthecreditportfolio)andsubtractthe
effectofcredittighteningonsalesandthecostofsubsidizingnewloanoriginationsonthe
company'snegativeROAportfolio,you'relookingsomewhereintherangeof$45inEPS,
atbest,forFY2018.

Conclusion:
Signetisasubprimeconsumerlenderthathappenstoselljewelry.Thereisnodoubtthat
thecompany'srelianceoncredittodrivesalesgrowthisdangerousandyouhave
startedtoseethatriskreflectedinthestockpriceoverthelastyear.Onereasonthis
madeSignetanattractiveshortwasthatthecompanywasbetweenarockandahard
place,especiallysincetheyannouncedthestrategicreviewofthecreditportfolio.IfSIG
choosestooutsourceitsconsumerfinancingactivitiestoathirdparty(whichtheZales
segmentdoeswithADS),athirdpartywouldlikelyhavetighterlendingstandards,which,
inmyopinion,wouldlikelyresultinacreditpenetrationrateaslowas40%.Itisnosecret
thatthetopandbottomlinewouldlikelytakealargehitasaresult.

Signet'screditportfolioistoxic.ThecompanyinitiatedastrategicreviewinMay2016and
hassinceattemptedtooutrightsellthecreditportfolio,buttheprocesshasyettoresultin
anytransaction.ThisislikelybecauseitisvirtuallyimpossibleforSignettosellthecredit
portfoliounlessthecompanyiswillingtosellitsreceivablesatasignificantdiscountto
bookvalue.Q12018earningswilllikelycatchmanyinvestorsbysurpriseandIwouldbe
shockedifwedon'tseeasizeablewritedownonthecompany'sreceivablesduetoeither
acompletedtransactionand/oraforcedchangetocontractualaccounting.Itisimportant
toremindinvestorsthattheSEChasalreadypressuredSignet(throughacommentletter)
toprovidecontractualmetrics,butthecompanyhasyettodoso.Allinall,Signetseems
tohaveneverendingissuesandtheyboxedthemselvesinwhentheyinitiatedthis
"strategicevaluation"ofthecreditportfolio.Iamexpectingthecompanywillmissthe
alreadylowconsensusexpectationswhenitreportsonMay25th.Analystsareexpecting
$1.67inEPSandcompsdown8.4%(9.7%fortheSterlingsegment).However,anynews
regardingthecreditportfolioandadditionalcommentaryontheearningscalliswhatIwill
bepayingcloserattentionto.

Rememberallthatglittersisnotgold!
ThisarticleispartofSeekingAlphaPRO.PROmembersreceiveexclusiveaccessto
SeekingAlpha'sbestideasandprofessionaltoolstofullyleveragetheplatform.

Disclosure:Iam/weareshortSIG.

Iwrotethisarticlemyself,anditexpressesmyownopinions.Iamnotreceiving
compensationforit(otherthanfromSeekingAlpha).Ihavenobusinessrelationshipwith
anycompanywhosestockismentionedinthisarticle.

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