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

SHEN: Overvalued for Near-Term Headwinds, Sell

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

Shenandoah Telecommunications Company / Equity Bottom-Up

Shenandoah Telecommunications Company (SHEN US)

<ul type="disc"><li>With the sale of the wireless business complete, Shenandoah Telecommunications (SHEN) is now squarely in the broadband business. SHEN has been expanding its fiber, Glo Fiber, and fixed wireless broadband service, Beam, in multiple towns.</li></ul> <ul type="disc"><li>Second quarter results showed gradual sequential growth with more Glo Fiber and Beam subscribers. The second quarter was the last time SHEN would recognize net income from its legacy wireless business.</li></ul> <ul type="disc"><li>The cash dividend removes a near-term catalyst for capital return while investors would need to wait for Glo Fiber and Beam to reach scale.</li></ul> <ul type="disc"><li>The capital-intensive nature of SHEN’s business is expected to result in SHEN not reaching free cash flow positive until 2024.</li></ul>

With the sale of the wireless business complete, Shenandoah Telecommunications (SHEN) is now squarely in the broadband business. SHEN has been expanding its fiber, Glo Fiber, and fixed wireless broadband service, Beam, in multiple towns. Second quarter results showed gradual sequential growth with more Glo Fiber and Beam subscribers. The second quarter was the last time SHEN would recognize net income from its legacy wireless business. The cash dividend removes a near-term catalyst for capital return while investors would need to wait for Glo Fiber and Beam to reach scale. The capital-intensive nature of SHEN’s business is expected to result in SHEN not reaching free cash flow positive until 2024.

Shenandoah Telecommunications Company

SHEN: An Expensive Call