Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

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.

Equity Bottom-Up

<ul>
<li>NTGR has brought back the goal of achieving double digit operating margin after three years of underperformance while turning the business around.</li>
<li>Unlike prior years where NTGR was relying on unit volume growth to drive operating leverage, NTGR now has a growing base of subscription revenue that is contributing to earnings</li>
<li>NTGR’s annual investor day highlighted the expectation of exiting 2023 with annual recurring revenue (“ARR”) of $40 million and $50 million in 2024</li>
</ul>


NTGR has brought back the goal of achieving double digit operating margin after three years of underperformance while turning the business around.
Unlike prior years where NTGR was relying on unit volume growth to drive operating leverage, NTGR now has a growing base of subscription revenue that is contributing to earnings
NTGR’s annual investor day highlighted the expectation of exiting 2023 with annual recurring revenue (“ARR”) of $40 million and $50 million in 2024


<ul>
<li>NTGR benefited from an increase in demand for premium wireless mesh systems and routers in the third quarter resulting in a non-GAAP profit</li>
<li>The return of normalcy should allow NTGR to convert its on hand inventory to cash over the next two quarters. NTGR’s cash balance should continue to rise</li>
<li>A softer environment for SMB products forces us to reassess our model with NTGR guiding gross margin down</li>
</ul>


NTGR benefited from an increase in demand for premium wireless mesh systems and routers in the third quarter resulting in a non-GAAP profit
The return of normalcy should allow NTGR to convert its on hand inventory to cash over the next two quarters. NTGR’s cash balance should continue to rise
A softer environment for SMB products forces us to reassess our model with NTGR guiding gross margin down


<ul>
<li>The third quarter could become a defining moment for NETGEAR (NTGR) and its stock price.</li>
<li>With less than a week left in the third quarter, we have observed how the return of seasonality has reduced the frequency and depth of discounts</li>
<li>Seasonality has not been present in NTGR’s business since 2019. As a result, investors might be neglecting the lift in demand NTGR could experience</li>
</ul>


The third quarter could become a defining moment for NETGEAR (NTGR) and its stock price.
With less than a week left in the third quarter, we have observed how the return of seasonality has reduced the frequency and depth of discounts
Seasonality has not been present in NTGR’s business since 2019. As a result, investors might be neglecting the lift in demand NTGR could experience


<ul>
<li>NTGR is beginning to experience stability in demand and inventory within its connected home segment suggesting growth could be around the corner</li>
<li>The lower inventory levels at retail partners should result in fewer promotion activity as NTGR is now projecting the return of seasonal strength in the third quarter</li>
<li>NTGR reported second quarter revenue ahead of expectations with connected home revenue being the factor for the outperformance</li>
</ul>


NTGR is beginning to experience stability in demand and inventory within its connected home segment suggesting growth could be around the corner
The lower inventory levels at retail partners should result in fewer promotion activity as NTGR is now projecting the return of seasonal strength in the third quarter
NTGR reported second quarter revenue ahead of expectations with connected home revenue being the factor for the outperformance


<ul>
<li>NTGR has spent the last two years adjusting to a consumer spending environment post pandemic and should begin to show greater benefits of the new business strategy </li>
<li>The inventory rebalancing at NTGR’s main retailers is mostly sorted out and NTGR has been putting greater emphasis on its super premium wireless systems</li>
<li>NTGR’s ability to generate free cash flow this year should improve investor sentiment in owning the stock.</li>
</ul>


NTGR has spent the last two years adjusting to a consumer spending environment post pandemic and should begin to show greater benefits of the new business strategy 
The inventory rebalancing at NTGR’s main retailers is mostly sorted out and NTGR has been putting greater emphasis on its super premium wireless systems
NTGR’s ability to generate free cash flow this year should improve investor sentiment in owning the stock.


United States

NETGEAR, Inc. provides networking products designed for small businesses and homes.  The Company's suite of products enables small businesses and homes to share Internet access, peripherals, digital content, and applications among multiple personal computers and other Internet-enabled devices.  NETGEAR markets and sells its products through distributors to a network of resellers.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Netgear Inc (NTGR US)

NTGR: ARR Enters the Conversation

NTGR used its annual investor day to highlight ARR for the first time. Along with free cash flow improving the balance sheet in 2024 the growing...

BWS Financial Inc

NTGR: Recovery with Cash Flow

The return of seasonality resulted in NTGR achieving non-GAAP net income. Weakness in SMB is likely to create downward pressure on gross margin in...

BWS Financial Inc

NTGR: Undervalue of Seasonality

In the third quarter, we have observed low frequency of promotions and the discounts have been less than prior periods. NTGR's ability to hold...

BWS Financial Inc

NTGR: Trough in the Past

There are signs of stability within the business and improved inventory levels within the channel. The combination of which should lead to higher...

BWS Financial Inc

NTGR: Easing Inventory Concern

Much of the inventory rebalancing that has plagued NTGR's margins should be out of the way with Q2 results. NTGR's top two customers are now...

BWS Financial Inc

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)