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

• NETGEAR (NTGR) surprised to the downside citing slower than anticipated sell through of products in the second quarter causing a buildup of channel inventory. The second quarter is seasonally the slowest time of the year, but this year it included Amazon Prime Day, which could have played a role in how much inventory retailers were willing to stock. Unfortunately for NTGR, Prime Day was towards the very end of the quarter giving the Company very little time to react. • The fallout from the disappointing second quarter revenue leads to the third quarter experiencing a sequential decline in revenue versus a seasonal lift. • We have lowered our estimates for the rest of the year bringing our non-GAAP EPS down to $2.89 from $3.50. • Our price target is now $43 from $54 to reflect the weakness in the third quarter and the reduced valuation the shares would likely receive until NTGR proves the inventory situation is a one-quarter event.

• NETGEAR (NTGR) surprised to the downside citing slower than anticipated sell through of products in the second quarter causing a buildup of channel inventory. The second quarter is seasonally the slowest time of the year, but this year it included Amazon Prime Day, which could have played a role in how much inventory retailers were willing to stock. Unfortunately for NTGR, Prime Day was towards the very end of the quarter giving the Company very little time to react. • The fallout from the disappointing second quarter revenue leads to the third quarter experiencing a sequential decline in revenue versus a seasonal lift. • We have lowered our estimates for the rest of the year bringing our non-GAAP EPS down to $2.89 from $3.50. • Our price target is now $43 from $54 to reflect the weakness in the third quarter and the reduced valuation the shares would likely receive until NTGR proves the inventory situation is a one-quarter event. 

Netgear Inc

NTGR: Missing a Gear, PT to $43