Her channel checks indicate the company's China revenue will fall by as much as 21% in 2019 (vs. management claims of a 6-8% decline) and she believes that "A.O. Smith does not actually have access to the $539M that reportedly sits in China."
Spruce Point is piling on, saying the firm's gross margins "are either being inflated by management with aggressive accounting, or can't be sustained as local competitors" catch up. It also sees 45%-60% downside for AOS shares.
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