Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

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.

Equity Bottom-Up

Immersion Corporation develops and licenses hardware and software technologies that enable users to interact with computers using their sense of touch.  The Company's patented TouchSense technologies enable computer peripheral devices to deliver tactile sensations that correspond to on-screen events.

<ul>
<li>Q2 is seasonally a slow period for licensing revenue at IMMR. This year, IMMR has made investments in BNED and UEIC could result in a materially significant earnings report.</li>
<li>IMMR’s investment portfolio could sway quarterly performance. In Q2 it would be, by our estimate, to the upside. We are raising our estimates for the second quarter and full year.</li>
<li>Our price target remains $11 ahead of quarterly results even though there is clearly an opportunity for IMMR to surpass our earnings estimate to support a higher stock price.</li>
</ul>


Q2 is seasonally a slow period for licensing revenue at IMMR. This year, IMMR has made investments in BNED and UEIC could result in a materially significant earnings report.
IMMR’s investment portfolio could sway quarterly performance. In Q2 it would be, by our estimate, to the upside. We are raising our estimates for the second quarter and full year.
Our price target remains $11 ahead of quarterly results even though there is clearly an opportunity for IMMR to surpass our earnings estimate to support a higher stock price.


Talen Energy Corporation provides utility services. The Company generates, distributes, transmits, and markets electricity, as well as produces and supplies natural gas and other renewable energy products for residential and commercial users. Talen Energy serves customers in the United States.

<ul>
<li>TLNE has come under pressure after news of AEP and EXC protesting the power purchase agreement between TLNE and AWS. AEP and EXC are asking for a hearing by FERC</li>
<li>The process creates a headwind for TLNE and the timing of when, or if, the remaining $300M would be released in TLNE's agreement with AWS.  </li>
<li>The signal AEP and EXC are sending supports the long-term view on power supply. The power being diverted to AWS would put greater stress on the regulated power companies</li>
</ul>


TLNE has come under pressure after news of AEP and EXC protesting the power purchase agreement between TLNE and AWS. AEP and EXC are asking for a hearing by FERC
The process creates a headwind for TLNE and the timing of when, or if, the remaining $300M would be released in TLNE's agreement with AWS.  
The signal AEP and EXC are sending supports the long-term view on power supply. The power being diverted to AWS would put greater stress on the regulated power companies


NET Lease Office Properties / Equity Bottom-Up

NET Lease Office Properties operates as a real estate investment trust. The Company owns and manages office properties and certain other assets. NET Lease Office Properties serves customers in the United States.

<ul>
<li>NLOP announced the sale of two more properties bringing the aggregate count of properties sold since fourth quarter 2023 to twelve.   </li>
<li>NLOP has been highly active in selling properties. We believe the motivation has more to do with the interest expense of its mortgage and mezzanine loans.   </li>
<li>The latest two properties sold were materially higher than the company-wide price per square foot NLOP is carrying on its balance sheet.</li>
</ul>


NLOP announced the sale of two more properties bringing the aggregate count of properties sold since fourth quarter 2023 to twelve.   
NLOP has been highly active in selling properties. We believe the motivation has more to do with the interest expense of its mortgage and mezzanine loans.   
The latest two properties sold were materially higher than the company-wide price per square foot NLOP is carrying on its balance sheet.


Garrett Motion Inc. operates as an automobile technology provider. The Company offers turbocharging, electric boosting, and automotive software solutions. Garrett Motion serves customers worldwide.

<ul>
<li>In the month since GTX reported first quarter results, there have been more industry news pointing towards automobile models benefiting GTX. </li>
<li>Automakers are indicating to using ICE and hybrid for longer than expected, which should contribute to GTX's ability to generate free cash flow beyond the next couple of years.</li>
<li>We continue to expect 2024 sales to skew to the second half of the year, but GTX should generate adequate free cash flow to repurchase shares and reduce debt. </li>
</ul>


In the month since GTX reported first quarter results, there have been more industry news pointing towards automobile models benefiting GTX. 
Automakers are indicating to using ICE and hybrid for longer than expected, which should contribute to GTX's ability to generate free cash flow beyond the next couple of years.
We continue to expect 2024 sales to skew to the second half of the year, but GTX should generate adequate free cash flow to repurchase shares and reduce debt. 


<ul>
<li>TLNE is putting its growing cash balance to use by announcing a Dutch tender buyback of up to $600 million of its stock.</li>
<li>The Dutch tender establishes our price target of $120 is too low as we look ahead to 2025.</li>
<li>Our price target of $120 was based on TLNE generating approximately $700 million of adjusted EBITDA in 2024. We are now using our 2025 estimate for our price target</li>
</ul>


TLNE is putting its growing cash balance to use by announcing a Dutch tender buyback of up to $600 million of its stock.
The Dutch tender establishes our price target of $120 is too low as we look ahead to 2025.
Our price target of $120 was based on TLNE generating approximately $700 million of adjusted EBITDA in 2024. We are now using our 2025 estimate for our price target


Founded BWS Financial in 2000. Has been generating long/short investment ideas focused on catalyst driven value stocks since 2003.

Hamed Khorsand
Founder
• BWS Financial Inc

IMMR: Previewing the Gains of Q2

IMMR's equity portfolio could be a factor in this quarter's earnings results. IMMR has two large gains leading us to raise our earnings estimate...

BWS Financial Inc

TLNE: Protest Validates Long Thesis

We view this attempt to block the power purchase agreement between TLNE and AWS as a signal there is a power shortage issue several years down the...

BWS Financial Inc

NLOP: Debt Declining Affirms Valuation

The valuation received from the asset sale was higher than the company-wide book value suggesting there is material upside value to NLOP's stock...

BWS Financial Inc

GTX: Ice Unfrozen

There have been several announcements from different carmakers asserting how internal combustion engines and hybrids are likely to remain part of...

BWS Financial Inc

TLNE: Electrifying Tender, PT to $145

TLNE has announced a $600 million Dutch tender offer for its stock between $116 and $122. This range establishes our price target of $120 was too...

BWS Financial Inc