Shares of A.O. Smith (AOS) have slumped about 11% over the last two days following a bearish research report released by short seller J Capital Research.  You can read their 66-page report here, but the firm makes the following key allegations against A.O. Smith's business practices and outlook: Short-term performance in China, which accounts for 34% of A.O. Smith's sales, is overstated due to channel stuffing  A.O. Smith has an undisclosed distribution partner in China that could be responsible for up to 75% of its sales in that region; the partner accepts the firm's inventory and helps finance distributors, allowing A.O. Smith to report better gross margins and sales growth in periods of weaker demand Since the macro outlook is deteriorating [...]

In October 2018, we reviewed Vodafone's (VOD) dividend safety and made the following remarks (see our full note here): Vodafone's "Borderline Safe" Dividend Safety Score is hanging by a thread. With the dividend consuming the bulk of Vodafone's free cash flow, plus rising leverage from the Liberty Global deal, the capital-intensive nature of its businesses, and very competitive telecom markets in Europe, there is little room for error. As conservative income investors, we prefer to stick with financially stronger businesses that score closer to 60 or higher for Dividend Safety. Regardless, Vodafone shareholders should make sure they are comfortable with these risks, as well as the size of their position and their overall portfolio diversification. The next year could be volatile for Vodafone [...]

Founded in 1894 in Hershey, Pennsylvania, Hershey (HSY) manufactures and sells chocolate and non-chocolate confectionery products including gum and mints; baking ingredients such as toppings, beverages, and syrups; and snack items, including spreads, meat snacks, bars, mixes, popcorn, protein bars, and cookies.These products are marketed under over 80 leading brands including: Hershey’s, Reese’s, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Scharffen Berger, Dagoba, Ice Breakers, Breathsavers, SkinnyPop, Krave, and Bubble Yum.  Internationally (the company sells in over 90 countries), the company's brands include Pelon Pelo Rico, IO-IO, Nutrine, Maha Lacto, Jumpin, Sofit, Oatmega, Paqui, and Tyrrells.

Simon Property Group (SPG) is America’s largest mall owner, with full or partial ownership interest in over 230 properties across North America, Europe, and Asia. In 2018 Simon's U.S. mall tenants generated over $60 billion in retail sales.  Most of Simon's locations are anchored by department stores, and the vast majority of net operating income, or NOI, is derived from the company's U.S. malls (48% of NOI) and premium outlet centers (42%), which are essentially groups of discounted luxury stores.  Simon's U.S. malls and outlets, which accounted for 79% of NOI in 2018, are concentrated in large and relatively fast-growing states, including Florida (16% of NOI), California (13%), Texas (10%), and New York (7%). The company's premium super regional mall [...]