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

VRS: EV/EBITDA Now 2.5X, Raising PT to $35

VRS: Dragged Out Process Hides Real Value

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>The peak selling season for coated paper is well underway and industry feedback remains laser focused on sold out conditions and how supply is dwindling not increasing. There was another price increase that occurred at the beginning of October, bringing the year-to-date price increase to as much as 20 percent.</li></ul> <ul type="disc"><li>The current climate continues to support the producers with customers having little room to seek substitutes. Verso Corp. (VRS) stands to benefit from the current business environment to a greater degree than we had been originally forecasting.</li></ul> <ul type="disc"><li>The sold-out conditions have been persistent since the beginning of the year, and substitution is becoming challenging compared to prior cycles.</li></ul> <ul type="disc"><li>We are slightly raising our estimates for the remainder of 2021. Our 2021 adjusted EBITDA is now $190 million from $187 million. We believe our assessment remains conservative to what VRS could report.</li></ul>

The peak selling season for coated paper is well underway and industry feedback remains laser focused on sold out conditions and how supply is dwindling not increasing. There was another price increase that occurred at the beginning of October, bringing the year-to-date price increase to as much as 20 percent. The current climate continues to support the producers with customers having little room to seek substitutes. Verso Corp. (VRS) stands to benefit from the current business environment to a greater degree than we had been originally forecasting. The sold-out conditions have been persistent since the beginning of the year, and substitution is becoming challenging compared to prior cycles. We are slightly raising our estimates for the remainder of 2021. Our 2021 adjusted EBITDA is now $190 million from $187 million. We believe our assessment remains conservative to what VRS could report.

Verso Corp

VRS: Sold Out for 2021