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

VRS: EV/EBITDA Now 2.5X, Raising PT to $35

VRS: Dragged Out Process Hides Real Value

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>The tight supply conditions for coated paper have not dissipated so far through the year leading to Verso Corp. (VRS) and other coated paper producers to raise prices again.</li></ul> <ul type="disc"><li>The latest price increase puts VRS ahead of peak pricing during the cycle of 2018. Without additional supply coming online, demand could deteriorate with further transition to digital media. However, the latest US Postal Service data suggests this is not the case this year.</li></ul> <ul type="disc"><li>The recovery in the coated paper industry affirms our reasoning for VRS being worth more than the current take-out offer of $20 a share.</li></ul> <ul type="disc"><li>Current market conditions are expected to spill over into 2022 as demand remains ahead of supply. VRS’s ability to generate an aggregated $6.80 per share of free cash flow over 2021 and 2022 should result in a stock trading closer to $30.</li></ul>

The tight supply conditions for coated paper have not dissipated so far through the year leading to Verso Corp. (VRS) and other coated paper producers to raise prices again. The latest price increase puts VRS ahead of peak pricing during the cycle of 2018. Without additional supply coming online, demand could deteriorate with further transition to digital media. However, the latest US Postal Service data suggests this is not the case this year. The recovery in the coated paper industry affirms our reasoning for VRS being worth more than the current take-out offer of $20 a share. Current market conditions are expected to spill over into 2022 as demand remains ahead of supply. VRS’s ability to generate an aggregated $6.80 per share of free cash flow over 2021 and 2022 should result in a stock trading closer to $30.

Verso Corp

VRS: Stacking the Cash