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

GTX: Motion for Commotion, Initiating with Buy

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>
Garrett Motion (GTX, GTXAP) was not immune to the production curtailments within the auto industry. GTX reported second quarter results showing a decline in the number of turbocharger units sold in the quarter while average selling price (“ASP”) rose.</li></ul> <ul type="disc"><li>Automakers have been focusing on producing their highest margin vehicles at a time when semiconductors are in short supply to meet industry demand. The change in product mix allowed GTX to report an increased gross margin and operating margin.</li></ul> <ul type="disc"><li>The demand environment for vehicles has increased resulting in lowered channel inventory. Automakers have stated they expect the tight inventory environment could remain until 2023. At the same time, new car models are being introduced and GTX is winning greater share of light vehicles in the US with its new gasoline turbochargers.</li></ul> <ul type="disc"><li>We have made changes to our earnings model after GTX updated its guidance for the year. We believe GTX is taking a cautious tone reflecting the chip shortage causing automakers to reduce production in the near-term.</li></ul>


Garrett Motion (GTX, GTXAP) was not immune to the production curtailments within the auto industry. GTX reported second quarter results showing a decline in the number of turbocharger units sold in the quarter while average selling price (“ASP”) rose. Automakers have been focusing on producing their highest margin vehicles at a time when semiconductors are in short supply to meet industry demand. The change in product mix allowed GTX to report an increased gross margin and operating margin. The demand environment for vehicles has increased resulting in lowered channel inventory. Automakers have stated they expect the tight inventory environment could remain until 2023. At the same time, new car models are being introduced and GTX is winning greater share of light vehicles in the US with its new gasoline turbochargers. We have made changes to our earnings model after GTX updated its guidance for the year. We believe GTX is taking a cautious tone reflecting the chip shortage causing automakers to reduce production in the near-term.

Garrett Motion

GTX: Clarity in Motion