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.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

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 signed ten license agreements and reduced debt by approximately $40 million in the first quarter. ADEA has yet to announce a new major OTT license aside from Paramount renewing.</li>
<li>The investment case for owning ADEA’s stock has centered on the Company’s ability to sign more license agreements</li>
<li>ADEA remains on pace to generate $150 million of free cash flow to help reduce the Company’s debt balance further.</li>
</ul>


ADEA signed ten license agreements and reduced debt by approximately $40 million in the first quarter. ADEA has yet to announce a new major OTT license aside from Paramount renewing.
The investment case for owning ADEA’s stock has centered on the Company’s ability to sign more license agreements
ADEA remains on pace to generate $150 million of free cash flow to help reduce the Company’s debt balance further.


Shenandoah Telecommunications Company / Equity Bottom-Up

Shenandoah Telecommunications Company provides telecommunications services through its subsidiaries.  The Company offers integrated, full service telecommunications products and services in the Northern Shenandoah Valley and surrounding areas.  Shenandoah Telecommunications also holds paging and other radio telecommunications licenses.

Shenandoah Telecommunications Company (SHEN US)

<ul>
<li>SHEN added a record number of Glo Fiber subscribers in the first quarter as growing number of markets served begins to run through the subscriber and revenue figures</li>
<li>SHEN’s ability to add over 5,000 Glo Fiber customers in Q1 sets our expectations for approximately 5,500 in Q3 when net adds are seasonally the highest of the year</li>
<li>Our timing to flip to a Buy after four years of negative bias has been anything but perfect. Our focus is on SHEN’s growth rate as Glo Fiber customers rise.</li>
</ul>


SHEN added a record number of Glo Fiber subscribers in the first quarter as growing number of markets served begins to run through the subscriber and revenue figures
SHEN’s ability to add over 5,000 Glo Fiber customers in Q1 sets our expectations for approximately 5,500 in Q3 when net adds are seasonally the highest of the year
Our timing to flip to a Buy after four years of negative bias has been anything but perfect. Our focus is on SHEN’s growth rate as Glo Fiber customers rise.


Eventbrite, Inc. operates as a platform as a service company. The Company offers a platform that allows users to provide online event planning services, as well as publishes, promotes, and sells tickets through social networks and e-mails. Evenbrite operates in the United States.

<ul>
<li>EB is continuing with its efforts to become a marketplace for events after reporting more than 24 million tickets were sold in the first quarter.</li>
<li>EB has been trying to win back paid creators after many left the platform last year due to higher costs for events on EB’s marketplace</li>
<li>While revenue was in line with consensus estimates, EB reported its third consecutive quarter with gross margin above 70 percent</li>
</ul>


EB is continuing with its efforts to become a marketplace for events after reporting more than 24 million tickets were sold in the first quarter.
EB has been trying to win back paid creators after many left the platform last year due to higher costs for events on EB’s marketplace
While revenue was in line with consensus estimates, EB reported its third consecutive quarter with gross margin above 70 percent


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 reported first quarter results exhibiting the ability to generate free cash flow during a seasonally slow period of the year. ECVT grew its cash balance by approximately $14.7 million.</li>
<li>ECVT’s management has yet to change its tune regarding the outlook for the year with expectations there would be pockets of softness</li>
<li>ECVT reported adjusted EBITDA of $45.5 million compared to our forecast of $46 million. ECVT is expected to show sequential improvement from first quarter levels</li>
</ul>


ECVT reported first quarter results exhibiting the ability to generate free cash flow during a seasonally slow period of the year. ECVT grew its cash balance by approximately $14.7 million.
ECVT’s management has yet to change its tune regarding the outlook for the year with expectations there would be pockets of softness
ECVT reported adjusted EBITDA of $45.5 million compared to our forecast of $46 million. ECVT is expected to show sequential improvement from first quarter levels


NETGEAR, Inc. provides networking products designed for small businesses and homes.  The Company's suite of products enables small businesses and homes to share Internet access, peripherals, digital content, and applications among multiple personal computers and other Internet-enabled devices.  NETGEAR markets and sells its products through distributors to a network of resellers.

<ul>
<li>NETGEAR (NTGR) has implemented a hard reset to the business and expectations that could result in several more quarters of dismal results</li>
<li>NTGR reported first quarter results that were in line with our estimates. However, NTGR’s new CEO plans to significantly reduce inventory in the second quarter in one concentrated manner</li>
<li>NTGR disclosed it was not selling as many of its ultra-premium Orbi mesh systems as initially expected</li>
</ul>


NETGEAR (NTGR) has implemented a hard reset to the business and expectations that could result in several more quarters of dismal results
NTGR reported first quarter results that were in line with our estimates. However, NTGR’s new CEO plans to significantly reduce inventory in the second quarter in one concentrated manner
NTGR disclosed it was not selling as many of its ultra-premium Orbi mesh systems as initially expected


BWS Financial Inc
Independent Stock Specific Research

ADEA: Setting Course for New Licensees

ADEA reduced its debt balance by approximately $40 million in the quarter. ADEA's management signaled there are large license deals in the works...

BWS Financial Inc

SHEN: Glo-Ing Adds

The record number of Glo Fiber adds in the quarter put SHEN on pace for higher-than-expected adjusted EBITDA this year, which we do not believe is...

BWS Financial Inc

EB: Margin Stability Ahead of Summer

EB is putting emphasis on business growing after the second quarter by reaffirming full year guidance. We highlight how EB's cash balance grew...

BWS Financial Inc

ECVT: Cash Balance Growing While Waiting

First quarter results affirm the free cash flow we expect the Company to generate this year in support of a higher valuation

BWS Financial Inc

NTGR: Hard Reset, Downgrading

While first quarter was in line with our estimates commentary surrounding a slowdown in ultra-premium Orbi mesh systems and no concrete timeline to...

BWS Financial Inc