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

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Verso Corp. (VRS) received a non-binding takeover offer of $20 a share in cash from current shareholder Atlas Holdings LLC. The acquisition price materially undervalues VRS and the current state of its business.</li></ul> <ul type="disc"><li>This is not the first time Atlas has tried to purchase VRS. Atlas had previously failed resulting in a proxy battle that eventually led VRS changing its Board of Directors. This time, the offer from Atlas could be taken seriously, but at $20 it gives shareholders no value to the current business environment VRS is benefiting from.</li></ul> <ul type="disc"><li>Our investment thesis in owning VRS, and why we value the shares at $30, has been based upon the prognostication of the price appreciation for coated paper resulting in adjusted EBITDA and free cash flow materially higher than 2020 and 2019 levels. The price increase taking effect on July 15, 2021, puts coated freesheet close to 2018 peak levels.</li></ul> <ul type="disc"><li>Current market conditions could lead to VRS generating, in aggregate, approximately $190 million in free cash flow, or $6.42 per share, in 2021 and 2022.</li></ul>


Verso Corp. (VRS) received a non-binding takeover offer of $20 a share in cash from current shareholder Atlas Holdings LLC. The acquisition price materially undervalues VRS and the current state of its business. This is not the first time Atlas has tried to purchase VRS. Atlas had previously failed resulting in a proxy battle that eventually led VRS changing its Board of Directors. This time, the offer from Atlas could be taken seriously, but at $20 it gives shareholders no value to the current business environment VRS is benefiting from. Our investment thesis in owning VRS, and why we value the shares at $30, has been based upon the prognostication of the price appreciation for coated paper resulting in adjusted EBITDA and free cash flow materially higher than 2020 and 2019 levels. The price increase taking effect on July 15, 2021, puts coated freesheet close to 2018 peak levels. Current market conditions could lead to VRS generating, in aggregate, approximately $190 million in free cash flow, or $6.42 per share, in 2021 and 2022.

Verso Corp

VRS: Stealing Paper