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.

Independent Stock Specific Research

GTX: Motion for Commotion, Initiating with Buy

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

• Demand for light-weight vehicles remains elevated, but the lack of components is preventing automakers from ramping production. When Garrett Motion (GTX) reported second quarter results, management asserted there was little clarity into the quarter until September. Unfortunately, the environment has not improved with automakers continuing to limit their production levels.• The second quarter did not have the typical seasonal lift due to automakers pausing orders to catchup with semiconductor shortages. The third quarter seems to have many of the same attributes of the second quarter. • GTX issued full year revenue guidance of $3.7 billion to $3.9 billion with our estimate being closer to the middle of the range at $3.84 billion. However, we are now adjusting our 2021 revenue down to $3.76 billion. We are leaving our 2022 estimates unchanged as demand remains healthy and inventory is light. • The growth story that attracted us to GTX has been delayed until 2022.

• Demand for light-weight vehicles remains elevated, but the lack of components is preventing automakers from ramping production. When Garrett Motion (GTX) reported second quarter results, management asserted there was little clarity into the quarter until September. Unfortunately, the environment has not improved with automakers continuing to limit their production levels.• The second quarter did not have the typical seasonal lift due to automakers pausing orders to catchup with semiconductor shortages. The third quarter seems to have many of the same attributes of the second quarter. • GTX issued full year revenue guidance of $3.7 billion to $3.9 billion with our estimate being closer to the middle of the range at $3.84 billion. However, we are now adjusting our 2021 revenue down to $3.76 billion. We are leaving our 2022 estimates unchanged as demand remains healthy and inventory is light. • The growth story that attracted us to GTX has been delayed until 2022.

Garrett Motion

GTX: Gearing for Ramp in 2022