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

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Garrett Motion (GTX) is reducing its debt obligations and could be signaling the business is on pace with the guidance provided on the second quarter earnings report. GTX has reached an agreement with Honeywell International (HON), the sole holder of GTX’s Series B Preferred.</li></ul> <ul type="disc"><li>The Series B Preferred was structured to pay HON $800 million in eight equal annual payments. However, there were put and call options depending on GTX achieving $600 million adjusted EBITDA in trailing twelve months for two consecutive quarters.</li></ul> <ul type="disc"><li>The prepayment GTX is making helps reduce the leverage of its balance sheet while improving the capital structure. We believe GTX is on pace to achieve the guidance the Company issued with its second quarter earnings call.</li></ul> <ul type="disc"><li>GTX has forecast generating between $300 million and $400 million of free cash flow in 2021. GTX ended the June quarter with $401 million of cash and should be able to retain significant level liquidity entering 2022.</li></ul>


Garrett Motion (GTX) is reducing its debt obligations and could be signaling the business is on pace with the guidance provided on the second quarter earnings report. GTX has reached an agreement with Honeywell International (HON), the sole holder of GTX’s Series B Preferred. The Series B Preferred was structured to pay HON $800 million in eight equal annual payments. However, there were put and call options depending on GTX achieving $600 million adjusted EBITDA in trailing twelve months for two consecutive quarters. The prepayment GTX is making helps reduce the leverage of its balance sheet while improving the capital structure. We believe GTX is on pace to achieve the guidance the Company issued with its second quarter earnings call. GTX has forecast generating between $300 million and $400 million of free cash flow in 2021. GTX ended the June quarter with $401 million of cash and should be able to retain significant level liquidity entering 2022.

Garrett Motion

GTX: Turbocharged Deleverage