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>IMMR reported fiscal Q2 (October) after having changed its fiscal year end to April. IMMR changed its fiscal year end after the purchase of approximately 11 million shares of BNED.  </li>
<li>The quarter was continuation of IMMR reporting increased revenue from fixed rate royalties while per unit royalties declined slightly from the prior year.   </li>
<li>IMMR reported revenue of $14.1 million compared to our estimate of $10.1 million. We were not expecting a large bump in fixed royalties like IMMR reported in the quarter.  </li>
</ul>


IMMR reported fiscal Q2 (October) after having changed its fiscal year end to April. IMMR changed its fiscal year end after the purchase of approximately 11 million shares of BNED.  
The quarter was continuation of IMMR reporting increased revenue from fixed rate royalties while per unit royalties declined slightly from the prior year.   
IMMR reported revenue of $14.1 million compared to our estimate of $10.1 million. We were not expecting a large bump in fixed royalties like IMMR reported in the quarter.  


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 lacks the necessary permits to begin production by the end of 2024 after the California Coastal Commission held its final meeting of the year.  </li>
<li>SOC has been guiding for Q4 2024 as the start date of its operations. We do not believe this possibility exists with approximately two weeks left in the year. </li>
<li>SOC has experienced meaningful setbacks that are likely to lead to a long process of nothing occurring.</li>
</ul>


SOC lacks the necessary permits to begin production by the end of 2024 after the California Coastal Commission held its final meeting of the year.  
SOC has been guiding for Q4 2024 as the start date of its operations. We do not believe this possibility exists with approximately two weeks left in the year. 
SOC has experienced meaningful setbacks that are likely to lead to a long process of nothing occurring.


Innodata Inc. provides services, products and solutions that their clients use to create, manage and distribute digital information.  The Company provides business process, technology and consulting services to assist clients in setting digital content production and product strategies.

<ul>
<li>The risk to INOD experiencing a sequential decline in spending activity in the near-term could have been alleviated from the continued spending in artificial intelligence (“A.I.”).   </li>
<li>AMZN and GOOGL have their internally developed processors ready for high performance deep learning. The new chips suggest A.I. training is not going anywhere and could expand in 2025.   </li>
<li>INOD's revenue growth has been predominantly from one customer. This should begin to change in 2025. </li>
</ul>


The risk to INOD experiencing a sequential decline in spending activity in the near-term could have been alleviated from the continued spending in artificial intelligence (“A.I.”).   
AMZN and GOOGL have their internally developed processors ready for high performance deep learning. The new chips suggest A.I. training is not going anywhere and could expand in 2025.   
INOD's revenue growth has been predominantly from one customer. This should begin to change in 2025. 


Adeia Inc. operates as a consumer and entertainment product and intellectual property licensing company. The Company media solutions for use with traditional linear television in connection with OTT, direct-to-consumer, and social media services that provide access to entertainment inside and outside the home on a broad array of devices. Adeia serves customers worldwide.

<ul>
<li>ADEA announced a licensing agreement with AMZN setting the path for greater free cash flow in 2025. ADEA has previously mentioned it was close to signing two major licensing agreements.   </li>
<li>We assume ADEA’s full year guidance includes catch-up revenue associated with the license since AMZN was never a licensee before.   </li>
<li>ADEA had already signed several video streaming licenses, but AMZN would serve as the largest to date. It gives the investment story a stronger foundation.</li>
</ul>


ADEA announced a licensing agreement with AMZN setting the path for greater free cash flow in 2025. ADEA has previously mentioned it was close to signing two major licensing agreements.   
We assume ADEA’s full year guidance includes catch-up revenue associated with the license since AMZN was never a licensee before.   
ADEA had already signed several video streaming licenses, but AMZN would serve as the largest to date. It gives the investment story a stronger foundation.


Ecovyst Inc. provides specialty catalysts and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates through two segments, Ecoservices and Catalyst Technologies. The Ecoservices segment offers sulfuric acid recycling services for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Catalyst Technologies segment provides customized catalyst products and process solutions to producers and licensors of polyethylene and methyl methacrylate. Its catalyst supports the production of plastics used in packaging films, bottles, containers, and other molded applications. This segment also provides zeolite-based emission control catalysts, which enable the removal of nitrogen oxides from diesel engine emissions, as well as sulfur dioxide from fuels during the refining process. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

<ul>
<li>ECVT has gone through several business divestments and acquisitions over its history and the latest news suggests management is not content. </li>
<li>The timing is a surprise given the segment is to serve ECVT’s growth trajectory. The segment houses new technologies that should begin to contribute to sales in coming quarters.   </li>
<li>Advanced materials and catalysts is also the segment that owns the 50% stake in JV Zeolyst, which has been core of issues this year related to ECVT’s adjusted EBITDA performance.   </li>
</ul>


ECVT has gone through several business divestments and acquisitions over its history and the latest news suggests management is not content. 
The timing is a surprise given the segment is to serve ECVT’s growth trajectory. The segment houses new technologies that should begin to contribute to sales in coming quarters.   
Advanced materials and catalysts is also the segment that owns the 50% stake in JV Zeolyst, which has been core of issues this year related to ECVT’s adjusted EBITDA performance.   


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