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

HWKN: Price and Volume Lead to New PT of $52

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>Increase in demand and volumes supported Hawkins (HWKN) report fiscal second quarter (September) sales ahead of our forecasts. We had increased our numbers ahead of the results citing continued price appreciation across the product spectrum.</li></ul> <ul type="disc"><li>The rise in chemical costs did result in HWKN taking an accounting charge of $2.5 million for last in first out (“LIFO”). The charge resulted in gross margin declining in the quarter even though free cash flow continues to pace ahead of our expectations.</li></ul> <ul type="disc"><li>HWKN is benefiting from continued demand for specialty chemicals during a time when supply is tight. The volume and price increase should result in HWKN reporting higher earnings in subsequent quarters.</li></ul> <ul type="disc"><li>The industrial segment experienced sales growth of approximately 36 percent compared to the year ago period. HWKN has used its storage capacity to capitalize on greater demand in the market.</li></ul>

Increase in demand and volumes supported Hawkins (HWKN) report fiscal second quarter (September) sales ahead of our forecasts. We had increased our numbers ahead of the results citing continued price appreciation across the product spectrum. The rise in chemical costs did result in HWKN taking an accounting charge of $2.5 million for last in first out (“LIFO”). The charge resulted in gross margin declining in the quarter even though free cash flow continues to pace ahead of our expectations. HWKN is benefiting from continued demand for specialty chemicals during a time when supply is tight. The volume and price increase should result in HWKN reporting higher earnings in subsequent quarters. The industrial segment experienced sales growth of approximately 36 percent compared to the year ago period. HWKN has used its storage capacity to capitalize on greater demand in the market.

Hawkins Inc

HWKN: Demand Benefits