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

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>
Calix (CALX) reporting first quarter results does little to deviate from the challenges the Company faces this year. CALX had already told investors the first quarter would be strong due to timing shift in revenue from the fourth quarter. The Company shipping more legacy hardware to small communications service providers (“CSP”) in the quarter helped drive performance.</li></ul> <ul type="disc"><li>CALX has experienced a decline in revenue from large CSPs, in our view, reducing the revenue quality of CALX’s business. Small CSPs are not dependable to continue spending at the rate CALX requires to continue growing revenue.</li></ul> <ul type="disc"><li>Between the time we initiated coverage and when CALX reported first quarter results, the Company issued a press release nearly every business day to highlight how CSPs were using CALX products. CALX is not a product quality story.</li></ul> <ul type="disc"><li>The risk CALX faces is the demise of capital spending as consumers change the way they consume data. Plus the unavoidable impact the global chip shortage would have on the business.</li></ul>


Calix (CALX) reporting first quarter results does little to deviate from the challenges the Company faces this year. CALX had already told investors the first quarter would be strong due to timing shift in revenue from the fourth quarter. The Company shipping more legacy hardware to small communications service providers (“CSP”) in the quarter helped drive performance. CALX has experienced a decline in revenue from large CSPs, in our view, reducing the revenue quality of CALX’s business. Small CSPs are not dependable to continue spending at the rate CALX requires to continue growing revenue. Between the time we initiated coverage and when CALX reported first quarter results, the Company issued a press release nearly every business day to highlight how CSPs were using CALX products. CALX is not a product quality story. The risk CALX faces is the demise of capital spending as consumers change the way they consume data. Plus the unavoidable impact the global chip shortage would have on the business.

Calix Inc

CALX: Risks Abundant