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

<ul>
<li>GTX has entered into an agreement with its two largest shareholders to force the conversion of its Series A Preferred stock into common stock</li>
<li>The agreement with Centerbridge Partners and Oaktree Capital Management calls for GTX to repurchase shares $570 million of Series A Preferred stock and pay dividends owed</li>
<li>GTX had already claimed it would have reached the adjusted EBITDA requirement for the forced conversion. The transaction is accretive to GTX’s earnings.</li>
</ul>


GTX has entered into an agreement with its two largest shareholders to force the conversion of its Series A Preferred stock into common stock
The agreement with Centerbridge Partners and Oaktree Capital Management calls for GTX to repurchase shares $570 million of Series A Preferred stock and pay dividends owed
GTX had already claimed it would have reached the adjusted EBITDA requirement for the forced conversion. The transaction is accretive to GTX’s earnings.


<ul>
<li>GTX updated its annual outlook by forecasting results would be towards the high end of the previous guidance range.</li>
<li>GTX also highlighted the opportunity to force the conversion of the Series A Preferred stock by the middle of the year.</li>
<li>GTX had previously issued a sales outlook of $3.55 billion to $3.85 billion and adjusted EBITDA of $555 million to $615 million</li>
</ul>


GTX updated its annual outlook by forecasting results would be towards the high end of the previous guidance range.
GTX also highlighted the opportunity to force the conversion of the Series A Preferred stock by the middle of the year.
GTX had previously issued a sales outlook of $3.55 billion to $3.85 billion and adjusted EBITDA of $555 million to $615 million


<ul>
<li>GTX used its fourth quarter earnings report to update investors on its efforts to broaden its product portfolio beyond turbo chargers</li>
<li>Q4 results highlighted how the business continues to generate free cash flow even though orders can be lumpy. GTX reported Q4 at the midpoint of their guidance </li>
<li>In 2023, GTX should benefit from an increase in the number of turbochargers sold. New products should become a larger source of sales in 2024</li>
</ul>


GTX used its fourth quarter earnings report to update investors on its efforts to broaden its product portfolio beyond turbo chargers
Q4 results highlighted how the business continues to generate free cash flow even though orders can be lumpy. GTX reported Q4 at the midpoint of their guidance 
In 2023, GTX should benefit from an increase in the number of turbochargers sold. New products should become a larger source of sales in 2024


<ul>
<li>GTX experienced a recovery in its order trends from all segments in the third quarter leading to the Company reporting sales exceeding our expectations</li>
<li>GTX reported third quarter sales of $945 million compared to our lowered forecast of $908 million</li>
<li>GTX’s foray into EVs should have a positive impact on GTX’s sales and stock valuation. Investors have not been valuing GTX on the basis for having exposure to EVs</li>
</ul>


GTX experienced a recovery in its order trends from all segments in the third quarter leading to the Company reporting sales exceeding our expectations
GTX reported third quarter sales of $945 million compared to our lowered forecast of $908 million
GTX’s foray into EVs should have a positive impact on GTX’s sales and stock valuation. Investors have not been valuing GTX on the basis for having exposure to EVs


<ul>
<li>Continued improvement in automobile inventory levels should benefit Garrett Motion (GTX)</li>
<li>GTX has experienced a decline in turbochargers sold over the past year due to supply chain issues causing carmakers to have lumpy ordering rates. </li>
<li>Ahead of the second quarter results, we had highlighted the foreign exchange headwind the weaker Euro could play. The Euro continued to depreciate versus the US Dollar in the third quarter</li>
</ul>


Continued improvement in automobile inventory levels should benefit Garrett Motion (GTX)
GTX has experienced a decline in turbochargers sold over the past year due to supply chain issues causing carmakers to have lumpy ordering rates. 
Ahead of the second quarter results, we had highlighted the foreign exchange headwind the weaker Euro could play. The Euro continued to depreciate versus the US Dollar in the third quarter


Switzerland

Garrett Motion Inc. operates as an automobile technology provider. The Company offers turbocharging, electric boosting, and automotive software solutions. Garrett Motion serves customers worldwide.

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Garrett Motion (GTX US)

GTX: Forced Conversion Deal Accretive

The forced conversion of its Series A Preferred stock into common stock is an accretive transaction with an event that simplifies the capital...

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GTX: Revving for More Free Cash Flow

GTX updated its 2023 outlook to the high-end of their prior range. The update comes immediately after the close of the first quarter suggesting the...

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GTX: Product Mix and Free Cash Flow

Our adj EBITDA estimate remains unchanged at $593 million, which we believe is the main driver for valuing GTX's stock. GTX's ability to generate...

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GTX: Free Cash Flow and Win Rate

The catalyst for the stock remains GTX returning to growth, which is looking like it would be in 2023. Additionally, an increasing portion of the...

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GTX: The Macro Adjustment

North American auto sales and inventory data suggest order rates have continued to favor GTX in Q3. New car registrations in Europe suggest sales...

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