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

Sable Offshore Corp. operates as an oil and gas company. The Company focuses on developing the prolific Santa Ynez Unit in federal waters offshore. Sable Offshore Sable Offshore conducts its business in the United States.

<ul>
<li>SOC remains in limbo with the latest letter from “CalFire” creating further uncertainty as to when, if ever, SOC would be able to restart production at the Santa Ynez Unit.</li>
<li>SOC was previously served with a cease and desist order from the California Coastal Commission that barred the Company from any permit work until February 2025. </li>
<li>The latest media report suggests CalFire sent a letter to the California Legislature about the agency not having authority to allow SOC to restart production.</li>
</ul>


SOC remains in limbo with the latest letter from “CalFire” creating further uncertainty as to when, if ever, SOC would be able to restart production at the Santa Ynez Unit.
SOC was previously served with a cease and desist order from the California Coastal Commission that barred the Company from any permit work until February 2025. 
The latest media report suggests CalFire sent a letter to the California Legislature about the agency not having authority to allow SOC to restart production.


Symbotic Inc operates as an automation technology company. The Company specializes in supply chain with its end-to-end, AI-powered robotic, and software platform. Symbotic serves the retail, wholesale, and food companies worldwide.

<ul>
<li>SYM reported fiscal fourth quarter results that at first glance were better than expected, but really included several accounting events that seem to hide how SYM had a poor quarter.</li>
<li>Along with the quarterly results, SYM disclosed a restatement of prior quarterly results where $39.1 million of high-margin revenue was transferred to the fourth quarter. </li>
<li>When we initiated coverage of SYM we were worried about the timing of revenue associated with Walmart (WMT) and not anticipating an accounting mess.</li>
</ul>


SYM reported fiscal fourth quarter results that at first glance were better than expected, but really included several accounting events that seem to hide how SYM had a poor quarter.
Along with the quarterly results, SYM disclosed a restatement of prior quarterly results where $39.1 million of high-margin revenue was transferred to the fourth quarter. 
When we initiated coverage of SYM we were worried about the timing of revenue associated with Walmart (WMT) and not anticipating an accounting mess.


<ul>
<li>SOC reported third quarter results were the Company’s operations used cash of approximately $31.6 million and are now stuck in disagreement with the California Coastal Commission since September.   </li>
<li>SOC’s latest update with the Coastal Commission implies this could be a protracted process as SOC is now disclosing it would close the open excavations until there is an agreement</li>
<li>We believe SOC is not likely to achieve meaningful success in getting the work done in a timely manner. </li>
</ul>


SOC reported third quarter results were the Company’s operations used cash of approximately $31.6 million and are now stuck in disagreement with the California Coastal Commission since September.   
SOC’s latest update with the Coastal Commission implies this could be a protracted process as SOC is now disclosing it would close the open excavations until there is an agreement
We believe SOC is not likely to achieve meaningful success in getting the work done in a timely manner. 


Seadrill Limited operates as an oil and gas field service company. The Company offers drilling contracting services to unlock oil and gas resources for clients across harsh and benign locations. Seadrill serves customers worldwide.

<ul>
<li>SDRL reaffirmed contract activity remained sluggish even though the Company is 70 percent contracted through the end of 2025. Day rates have not compressed. </li>
<li>SDRL has managed through 2024 with less of its fleet operating than desired due to special surveys and mobilization of two rigs to Brazil.</li>
<li>For 2025, SDRL should have two rigs (West Auriga and West Polaris) operating in Brazil giving the Company the ability to grow adjusted EBITDA. </li>
</ul>


SDRL reaffirmed contract activity remained sluggish even though the Company is 70 percent contracted through the end of 2025. Day rates have not compressed. 
SDRL has managed through 2024 with less of its fleet operating than desired due to special surveys and mobilization of two rigs to Brazil.
For 2025, SDRL should have two rigs (West Auriga and West Polaris) operating in Brazil giving the Company the ability to grow adjusted EBITDA. 


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 reported two small property sales since the $71.5 million raised from the sale of the Scottsdale, Arizona building in August 2024. </li>
<li>The asset sales have contributed to NLOP reducing its debt burden from mortgage and mezzanine loans that carry interest rates of 9.8 percent and 14.5 percent, respectively.   </li>
<li>Cash flow from operations resulted in further reduction of debt in the third quarter.  </li>
</ul>


NLOP reported two small property sales since the $71.5 million raised from the sale of the Scottsdale, Arizona building in August 2024. 
The asset sales have contributed to NLOP reducing its debt burden from mortgage and mezzanine loans that carry interest rates of 9.8 percent and 14.5 percent, respectively.   
Cash flow from operations resulted in further reduction of debt in the third quarter.  


NLOP: Debt Reduction Supports 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

SOC: Timeline of Delays

There is media report about the "CalFire" sending a letter to the CA Legislature saying the agency does not have authority to approve the restart...

BWS Financial Inc

SYM: Celebrating an Accounting Nightmare

SYM transferred high-margin revenue to Q4. SYM also recognized $91.6 million in unbilled accounts receivable as revenue creating an illusion of...

BWS Financial Inc

SOC: Stuck in a Tar Pit

The latest disclosure in its 10K filing suggests the argument for having a permit or not having a permit with the California Coastal Commission...

BWS Financial Inc

SDRL: The Fleet and Free Cash Flow

SDRL plans to have two rigs in operation in Brazil by December, which puts 2025 fleet utilization at 70%. While contract activity has slowed, we...

BWS Financial Inc

NLOP: Debt Reduction Supports Price Target

NLOP used cash flow from operations along with asset sales in Q3 to reduce its debt balance. The consistent quarterly attempts to get debt to zero...

BWS Financial Inc