Founder, BWS Financial Inc

Hamed Khorsand

Founder

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BWS Financial Inc

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Equity Bottom-Up

Shenandoah Telecommunications Company / Equity Bottom-Up

<ul>
<li>SHEN reported first quarter results benefiting from non-recurring termination revenue and tax refunds. SHEN’s revenue and profitability were aided in the quarter with $1.7 million in termination fee</li>
<li>Net income benefited from a one-time refund on sales tax and interest earned on tax refunds more than offsetting SHEN’s interest expense</li>
<li>SHEN ended the first quarter with 28,793 Glo Fiber subscribers, up 4,507 from the fourth quarter 2022</li>
</ul>


SHEN reported first quarter results benefiting from non-recurring termination revenue and tax refunds. SHEN’s revenue and profitability were aided in the quarter with $1.7 million in termination fee
Net income benefited from a one-time refund on sales tax and interest earned on tax refunds more than offsetting SHEN’s interest expense
SHEN ended the first quarter with 28,793 Glo Fiber subscribers, up 4,507 from the fourth quarter 2022


<ul>
<li>SHEN reported better than expected fourth quarter revenue as more customers subscribe to faster broadband speeds</li>
<li>Our focus is on the seasonally low number of customer additions in the quarter even though SHEN was building out its optical fiber network.</li>
<li>Our negative bias has been built on SHEN's capital expenditure plans requiring the Company to build debt and the timing of when SHEN would reach free cash flow positive</li>
</ul>


SHEN reported better than expected fourth quarter revenue as more customers subscribe to faster broadband speeds
Our focus is on the seasonally low number of customer additions in the quarter even though SHEN was building out its optical fiber network.
Our negative bias has been built on SHEN's capital expenditure plans requiring the Company to build debt and the timing of when SHEN would reach free cash flow positive


<ul>
<li>SHEN is progressing with its fiber buildout under the Glo Fiber brand, but net losses are mounting. SHEN reported a quarterly net loss for the third straight quarter </li>
<li>SHEN also announced the sale of wireless spectrum related to its fixed wireless business, Beam. The cash proceeds are expected to help fund the fiber build out at Glo Fiber</li>
<li>The continued net losses are likely to compress SHEN’s valuation multiple, especially with the debt balance expected to rise in coming quarters</li>
</ul>


SHEN is progressing with its fiber buildout under the Glo Fiber brand, but net losses are mounting. SHEN reported a quarterly net loss for the third straight quarter 
SHEN also announced the sale of wireless spectrum related to its fixed wireless business, Beam. The cash proceeds are expected to help fund the fiber build out at Glo Fiber
The continued net losses are likely to compress SHEN’s valuation multiple, especially with the debt balance expected to rise in coming quarters


<ul>
<li>SHEN reported a narrower than expected operating loss for the second quarter as revenue increased from first quarter levels. </li>
<li>SHEN has started to see an increase in the number of Glo Fiber subscribers as the Company ramps up its fiber buildout</li>
<li>SHEN drew on its credit facility in July and expects to draw additional capital before the end of the year. The return of leverage could lead to a lower valuation.</li>
</ul>


SHEN reported a narrower than expected operating loss for the second quarter as revenue increased from first quarter levels. 
SHEN has started to see an increase in the number of Glo Fiber subscribers as the Company ramps up its fiber buildout
SHEN drew on its credit facility in July and expects to draw additional capital before the end of the year. The return of leverage could lead to a lower valuation.


<ul>
<li>SHEN reported an unexpected loss for the first quarter due to new system upgrades and the cost structure could remain elevated for the next 20 months</li>
<li>SHEN’s revenue is pacing ahead of expectations on higher Glo Fiber subscription numbers. SHEN’s business plan requires additional capital expenditure spending to expand the fiber network for Glo Fiber</li>
<li>The higher expenses in the quarter reflect SHEN implementing upgrades to multiple systems companywide. The new software would save $2 million annually after the 20-month phase-in process is concluded</li>
</ul>


SHEN reported an unexpected loss for the first quarter due to new system upgrades and the cost structure could remain elevated for the next 20 months
SHEN’s revenue is pacing ahead of expectations on higher Glo Fiber subscription numbers. SHEN’s business plan requires additional capital expenditure spending to expand the fiber network for Glo Fiber
The higher expenses in the quarter reflect SHEN implementing upgrades to multiple systems companywide. The new software would save $2 million annually after the 20-month phase-in process is concluded


United States

Spok Holdings, Inc. is a two-way wireless Internet messaging and wireless information company that operates offices and company-owned stores across the United States.  The Company provides local, regional, and nationwide wireless messaging and information services to customers throughout the United States and the Caribbean.

Telephone and Data Systems, Inc. is a diversified telecommunications company. The Company operates primarily in the cellular, local telephone, and personal communications services markets.  Telephone and Data Systems provides telecommunications services throughout the United States.

IDT Corporation offers consumer services focused primarily on the telecommunications industry. The Company, through its subsidiaries, provides retail and wholesale telecommunications services and products, including pre-paid and rechargeable calling cards and wholesale carrier services.

Anterix Inc. provides wireless communications applications. The Company focuses on delivering transformative broadband that enables the modernization of critical infrastructure for energy, transportation, and logistics sectors. Anterix serves customers in the United States.

Consolidated Communications Holdings, Inc. offers telecommunications services. The Company offers local and long distance telephone, digital telephone, high-speed Internet access, and digital television services to individuals and businesses in Illinois, Pennsylvania, and Texas.

United States Cellular Corporation provides wireless telecommunications services. The Company offers its customers various national plans with voice, messaging, and data usage options, along with an array of smartphones, tablets, and other wireless devices. United States Cellular caters to customers throughout the United States.

ATN International, Inc. provides telecommunications services to rural, niche, and other under-served markets and geographies.  The Company, through subsidiaries, provides both wireless and wireline connectivity to residential and business customers. ATN International also provides a range of mobile wireless solutions, local exchange services and broadband internet services.

Ooma, Inc. provides communications solutions and other connected services to small business, home, and mobile users. The Company offers home phone systems, cordless handsets, and bluetooth adapters, as well as caller identification, call-waiting, and voice mail services.

Liberty Global plc owns interests in broadband, distribution, and content companies operating outside the continental United States, principally in Europe, Asia, and Latin America.

EverQuote, Inc. operates as an Internet based marketing firm. The Company, through its platform, enables consumers to connect with auto insurance carriers and agents to meet their auto insurance needs. EverQuote serves customers in the United States.

OKINAWA CELLULAR TELEPHONE COMPANY provides cellular and car phone services in Okinawa Prefecture.  The Company also sells cellular phones and accessories.

PT Smartfren Telecom Tbk provides telecommunication services and general trading.

Orange Belgium offers mobile telephone services in Belgium through a GSM network, as well as fixed-line services for international calls. The Company offers services such as pre-paid calling cards, text messaging, mobile office access for business customers, and games.

Sonaecom, SGPS, S.A. offers telecommunications services.  The Company offers mobile and fixed-line telephone and Internet access services.  Sonaecom also offers systems integration and consulting services.

Partner Communications Company Ltd. is a global systems for mobile communications (GSM) mobile telephone network operator in Israel.  The Company, offers voice mail, voice messaging, information services, and data and fax transmission services.

Cellcom Israel Ltd. engages in the provision of cellular communications services. It operates through two segments: Cellcom and Netvision. The Cellcom segment includes Cellcom Israel Ltd. and its subsidiaries. The Netvision segment includes Netvision Ltd. and its subsidiaries. The company offers cellular and landline telephony; roaming, internet, and fax services; text and multimedia messaging services; cellular content and data services; technical support; account information; and direct-to-the-door parcel delivery. It also operates service and sale centers; dedicated centers for hearing impaired; and retail stores. Cellcom Israel was founded in 1994 and is headquartered in Netanya, Israel.

StarHub Ltd. is a fully-integrated info-communication company offering a full range of information, communications, and entertainment services for both consumer and corporate markets in Singapore. The Company provides mobile network and multi-channel cable TV services, including high definition and on-demand services, as well as high-speed residential broadband services.

SmarTone Telecommunications Holdings Limited, through its subsidiaries, provides mobile telecommunication and related services and sells mobile telephones and accessories.

Beijing Bewinner Communications Co., Ltd. provides telecommunications services to mobile communication users.

Beijing Bewinner Communications Co., (002148 CH)

PT XL Axiata Tbk provides a wide range of mobile telecommunications services in Indonesia.

Shenandoah Telecommunications Company provides telecommunications services through its subsidiaries.  The Company offers integrated, full service telecommunications products and services in the Northern Shenandoah Valley and surrounding areas.  Shenandoah Telecommunications also holds paging and other radio telecommunications licenses.

Shenandoah Telecommunications Company (SHEN US)

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Shenandoah Telecommunications Company (SHEN US)

SHEN: One-Time Benefits Offset Loss

SHEN reported a net income in the first quarter benefiting from one-time termination fee revenue and tax refund. Without these one-time events SHEN...

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SHEN: Slower Adds from a Larger Network

We argue the seasonally soft numbers could point to potential slowing as SHEN's network has increased over the past year, but that did not...

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SHEN: Levering for Growth, PT to $15

Our price target is now $15 from $16 as we expect SHEN's valuation to compress further. SHEN is expected to increase its debt balance in coming...

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SHEN: Return of Debt

SHEN is experiencing an increase in the number of Glo Fiber subscribers. However, the investment required to expand the network footprint has...

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SHEN: Rising Costs, Declining Cash

SHEN reported a net loss for Q1 due to increased wage costs and several system upgrades. The system upgrades are expected to cause elevated...

BWS Financial Inc

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