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Atento Could Be Sold In The Near Future

Oct. 01, 2021 1:19 PM ETAtento S.A. (ATTOF) Stock8 Comments
Andrew Walker profile picture
Andrew Walker


  • ATTO is a smaller stock with a tight float.
  • The majority of the company is held by three debt-focused private equity funds that have been involved in the company for years.
  • That combination makes ATTO ripe for a sale, and a sale could come at a big premium.
  • Even without a sale, ATTO is experiencing a lot of business momentum, and shares look cheap.

Abstract data background

shulz/E+ via Getty Images

It's been a rocky ride for Atento (ATTO). Carved out of Telefonica (TEF) over a decade ago, the company has struggled with a massive debt burden and poor growth.

However, in 2019, new management was brought in

This article was written by

Andrew Walker profile picture
Andrew Walker is a portfolio manager at Rangeley Capital LLC with a focus on small cap special situations investments. He's also the founder of https://yetanothervalueblog.substack.com/ and the Yet Another Value podcast

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (8)

bazooooka profile picture
Might add some more in low twenties.
Same there’s no volume to really move this
Safety in Numbers profile picture
@deadhead213 Just takes one big or lots of small buyers to move it a lot. Worked for AMC and GME, with ATTO at least it trades well below intrinsic value.

As soon as the stock is above $30, I assume it's in play given the proximity of a 50% premium to the ACB for the large shareholders HPS, GIC and Farallon
bazooooka profile picture
Going good.
Safety in Numbers profile picture
Thanks for the article and the podcast.

I have been bullish and vocal on $ATTO for some time but the risk/reward has never been better. Lots of catalysts lining up over the next 6-8 weeks with earnings which will easily beat current consensus and an investor day in which there is a good shot they introduce new guidance well above the street for 2023.

GroVal Capital profile picture
@Safety in Numbers - I also expect good earnings and a good plan on investor day. Been nice so far, but still way undervalued IMHO. Fortunately, the underlying fundamentals have continued to improve. Growing EBITDA, margins, the more profitable business lines and the hard currency revenues. Currency is holding ok and not the headwind it has been - hope that keeps up. Thanks for sharing all your work on this one Safety.
GroVal Capital profile picture
@GroVal Capital I'll add, I don't think that ATTO deserves the large multiple discount it is getting to peers. With the improving debt ratio and EBITDA margins, I think the company deserves more of a multiple re-rate. More true as the company continues to improve. As Plum notes in the podcast, current management has changed the trajectory of the company from the underperforming operations of the past.
Safety in Numbers profile picture
@GroVal Capital Thanks for your articles on this one too!

ATTO is up 34% since this one back in March and that is likely just the start.

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