Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

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Equity Bottom-Up

Adeia Inc. operates as a consumer and entertainment product and intellectual property licensing company. The Company media solutions for use with traditional linear television in connection with OTT, direct-to-consumer, and social media services that provide access to entertainment inside and outside the home on a broad array of devices. Adeia serves customers worldwide.

<ul>
<li>ADEA announced a licensing agreement with AMZN setting the path for greater free cash flow in 2025. ADEA has previously mentioned it was close to signing two major licensing agreements.   </li>
<li>We assume ADEA’s full year guidance includes catch-up revenue associated with the license since AMZN was never a licensee before.   </li>
<li>ADEA had already signed several video streaming licenses, but AMZN would serve as the largest to date. It gives the investment story a stronger foundation.</li>
</ul>


ADEA announced a licensing agreement with AMZN setting the path for greater free cash flow in 2025. ADEA has previously mentioned it was close to signing two major licensing agreements.   
We assume ADEA’s full year guidance includes catch-up revenue associated with the license since AMZN was never a licensee before.   
ADEA had already signed several video streaming licenses, but AMZN would serve as the largest to date. It gives the investment story a stronger foundation.


Ecovyst Inc. provides specialty catalysts and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates through two segments, Ecoservices and Catalyst Technologies. The Ecoservices segment offers sulfuric acid recycling services for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Catalyst Technologies segment provides customized catalyst products and process solutions to producers and licensors of polyethylene and methyl methacrylate. Its catalyst supports the production of plastics used in packaging films, bottles, containers, and other molded applications. This segment also provides zeolite-based emission control catalysts, which enable the removal of nitrogen oxides from diesel engine emissions, as well as sulfur dioxide from fuels during the refining process. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

<ul>
<li>ECVT has gone through several business divestments and acquisitions over its history and the latest news suggests management is not content. </li>
<li>The timing is a surprise given the segment is to serve ECVT’s growth trajectory. The segment houses new technologies that should begin to contribute to sales in coming quarters.   </li>
<li>Advanced materials and catalysts is also the segment that owns the 50% stake in JV Zeolyst, which has been core of issues this year related to ECVT’s adjusted EBITDA performance.   </li>
</ul>


ECVT has gone through several business divestments and acquisitions over its history and the latest news suggests management is not content. 
The timing is a surprise given the segment is to serve ECVT’s growth trajectory. The segment houses new technologies that should begin to contribute to sales in coming quarters.   
Advanced materials and catalysts is also the segment that owns the 50% stake in JV Zeolyst, which has been core of issues this year related to ECVT’s adjusted EBITDA performance.   


Sable Offshore Corp. operates as an oil and gas company. The Company focuses on developing the prolific Santa Ynez Unit in federal waters offshore. Sable Offshore Sable Offshore conducts its business in the United States.

<ul>
<li>SOC remains in limbo with the latest letter from “CalFire” creating further uncertainty as to when, if ever, SOC would be able to restart production at the Santa Ynez Unit.</li>
<li>SOC was previously served with a cease and desist order from the California Coastal Commission that barred the Company from any permit work until February 2025. </li>
<li>The latest media report suggests CalFire sent a letter to the California Legislature about the agency not having authority to allow SOC to restart production.</li>
</ul>


SOC remains in limbo with the latest letter from “CalFire” creating further uncertainty as to when, if ever, SOC would be able to restart production at the Santa Ynez Unit.
SOC was previously served with a cease and desist order from the California Coastal Commission that barred the Company from any permit work until February 2025. 
The latest media report suggests CalFire sent a letter to the California Legislature about the agency not having authority to allow SOC to restart production.


Symbotic Inc operates as an automation technology company. The Company specializes in supply chain with its end-to-end, AI-powered robotic, and software platform. Symbotic serves the retail, wholesale, and food companies worldwide.

<ul>
<li>SYM reported fiscal fourth quarter results that at first glance were better than expected, but really included several accounting events that seem to hide how SYM had a poor quarter.</li>
<li>Along with the quarterly results, SYM disclosed a restatement of prior quarterly results where $39.1 million of high-margin revenue was transferred to the fourth quarter. </li>
<li>When we initiated coverage of SYM we were worried about the timing of revenue associated with Walmart (WMT) and not anticipating an accounting mess.</li>
</ul>


SYM reported fiscal fourth quarter results that at first glance were better than expected, but really included several accounting events that seem to hide how SYM had a poor quarter.
Along with the quarterly results, SYM disclosed a restatement of prior quarterly results where $39.1 million of high-margin revenue was transferred to the fourth quarter. 
When we initiated coverage of SYM we were worried about the timing of revenue associated with Walmart (WMT) and not anticipating an accounting mess.


<ul>
<li>SOC reported third quarter results were the Company’s operations used cash of approximately $31.6 million and are now stuck in disagreement with the California Coastal Commission since September.   </li>
<li>SOC’s latest update with the Coastal Commission implies this could be a protracted process as SOC is now disclosing it would close the open excavations until there is an agreement</li>
<li>We believe SOC is not likely to achieve meaningful success in getting the work done in a timely manner. </li>
</ul>


SOC reported third quarter results were the Company’s operations used cash of approximately $31.6 million and are now stuck in disagreement with the California Coastal Commission since September.   
SOC’s latest update with the Coastal Commission implies this could be a protracted process as SOC is now disclosing it would close the open excavations until there is an agreement
We believe SOC is not likely to achieve meaningful success in getting the work done in a timely manner. 


BWS Financial Inc
Independent Stock Specific Research

ADEA: AMZN License Announced

ADEA announced a license agreement with Amazon.com (AMZN). This is the first license between the two companies and helps establish higher baseline...

BWS Financial Inc

ECVT: Unlocking of Value

ECVT has announced its intention to pursue strategic alternatives for its advanced materials and catalysts business, which could help unlock value

BWS Financial Inc

SOC: Timeline of Delays

There is media report about the "CalFire" sending a letter to the CA Legislature saying the agency does not have authority to approve the restart...

BWS Financial Inc

SYM: Celebrating an Accounting Nightmare

SYM transferred high-margin revenue to Q4. SYM also recognized $91.6 million in unbilled accounts receivable as revenue creating an illusion of...

BWS Financial Inc

SOC: Stuck in a Tar Pit

The latest disclosure in its 10K filing suggests the argument for having a permit or not having a permit with the California Coastal Commission...

BWS Financial Inc