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

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Garrett Motion (GTX) reported third quarter results missing our estimates in what was already well established as a tough quarter for the auto industry. During the quarter automakers continued to curtail their production levels due to semiconductor shortages.</li></ul> <ul type="disc"><li>Management had already warned when GTX reported second quarter results that it was looking like a weak third quarter with prospects of some activity in the fourth quarter. GTX’s third quarter results reflected such a scenario, but revenue ended up being $85 million below our estimate.</li></ul> <ul type="disc"><li>The turbochargers GTX was shipping in the quarter were mostly for commercial vehicles and aftermarket where the margins are higher. This enabled GTX to report operating margin of 12.3 percent and adjusted EBITDA of $134 million, or 16.0 percent.</li></ul> <ul type="disc"><li>GTX’s stock has been trading in a range over the last several months with waiting for a turn in the industry before purchasing stock. The demand for automobiles is strong enough where GTX could see steady increase in revenue for three years once the chip shortage is dissipated.</li></ul>


Garrett Motion (GTX) reported third quarter results missing our estimates in what was already well established as a tough quarter for the auto industry. During the quarter automakers continued to curtail their production levels due to semiconductor shortages. Management had already warned when GTX reported second quarter results that it was looking like a weak third quarter with prospects of some activity in the fourth quarter. GTX’s third quarter results reflected such a scenario, but revenue ended up being $85 million below our estimate. The turbochargers GTX was shipping in the quarter were mostly for commercial vehicles and aftermarket where the margins are higher. This enabled GTX to report operating margin of 12.3 percent and adjusted EBITDA of $134 million, or 16.0 percent. GTX’s stock has been trading in a range over the last several months with waiting for a turn in the industry before purchasing stock. The demand for automobiles is strong enough where GTX could see steady increase in revenue for three years once the chip shortage is dissipated.

Garrett Motion

GTX: Profitable Thru Industry Trough