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

HWKN: Price and Volume Lead to New PT of $52

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>The shortages that facilitated Hawkins (HWKN) reporting better than expected June quarter results have persisted through the September quarter. In the June quarter there were a handful of chemicals with nationwide shortages. Caustic soda and sodium hypochlorite (bleach) are two of the main chemicals to catch headlines, but the industry continues to experience shortages with many other chemicals.</li></ul> <ul type="disc"><li>The increase in chlorine demand related to COVID-19 has been replaced with demand for water treatment. The reopening of public and private pools has increased demand for the chemical without a corresponding increase in supply.</li></ul> <ul type="disc"><li>HWKN has been inventing in its water treatment segment through acquisitions. The business generates gross margin above the Company average and benefits from the growing need for water treatment solutions.</li></ul> <ul type="disc"><li>The September quarter has all the ingredients for beating our expectations.</li></ul>

The shortages that facilitated Hawkins (HWKN) reporting better than expected June quarter results have persisted through the September quarter. In the June quarter there were a handful of chemicals with nationwide shortages. Caustic soda and sodium hypochlorite (bleach) are two of the main chemicals to catch headlines, but the industry continues to experience shortages with many other chemicals. The increase in chlorine demand related to COVID-19 has been replaced with demand for water treatment. The reopening of public and private pools has increased demand for the chemical without a corresponding increase in supply. HWKN has been inventing in its water treatment segment through acquisitions. The business generates gross margin above the Company average and benefits from the growing need for water treatment solutions. The September quarter has all the ingredients for beating our expectations.

Hawkins Inc

HWKN: Chemically Outperforming