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>
Shenandoah Telecommunications (SHEN) is putting its focus on fiber to the home and pausing its fixed wireless broadband business after realizing the vast amount of government grant funding available.</li></ul> <ul type="disc"><li>SHEN is not expecting to reach positive free cash flow until 2026, two years later than originally planned, with the focus on growing its subscriber base.</li></ul> <ul type="disc"><li>The growth story is expected to continue over the next few years, but we fear the Street is irrationally valuing the shares based on a balance sheet that dwindles away in the fourth quarter due to a tax payment and in subsequent periods as SHEN invests in its network.</li></ul> <ul type="disc"><li>SHEN narrowed the revenue and adjusted OIBDA range for the remainder of the year. The current pace of additions should support slight increases in revenue and adjusted OIBDA in 2022.</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>


Shenandoah Telecommunications (SHEN) is putting its focus on fiber to the home and pausing its fixed wireless broadband business after realizing the vast amount of government grant funding available. SHEN is not expecting to reach positive free cash flow until 2026, two years later than originally planned, with the focus on growing its subscriber base. The growth story is expected to continue over the next few years, but we fear the Street is irrationally valuing the shares based on a balance sheet that dwindles away in the fourth quarter due to a tax payment and in subsequent periods as SHEN invests in its network. SHEN narrowed the revenue and adjusted OIBDA range for the remainder of the year. The current pace of additions should support slight increases in revenue and adjusted OIBDA in 2022. 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: Investing in Growing Subscribers