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New Opportunity In "The Cold" $ALSK

Jul. 22, 2013 9:06 AM ETALSK
arisberna profile picture
arisberna's Blog
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Reading various article I stumble on this company: $ALSK.

This company provides integrated communications services in Alaska.

They provides wire and wireless communications networks extend throughout Alaska. Connect to the Lower 48 states via our two diverse undersea fiber optic cable systems and provides "3G" wireless network. They employ less then 1000 people.

I was able to summarize some reason why I believes this a good opportunity around 2.30$ and still has some great potential:

- Could be a takeover target for companies that would like to expand in Alaska;

- From July 8th the shares is around 40%, signaling that is getting some attention;

- On March 31rst they have a positive a free cash flow of 17.9 mio. Looking at the BS, you could see immediately that they have a huge debt (around 530. mio), but $ALSK continues to target free cash flow for debt reduction.

- Around 23. mio in cash on March 31rst

- Their clients comprise small and medium businesses, larger enterprises, and government customers (municipal, local, state and federal government entities, school districts, libraries, and rural health care hospitals), and wholesale customers;

In addition to the above reasons, I believe a major catalyst for this company would be given by the oil/exploration industries.

In recent years more and more controversy has been growing regarding oil/gas in Alaska.

Even though the U.S. government promotion increased energy production as part of a new National Arctic Strategy, fallout from 2012, I believe is just a setback. Some are still bullish on energy exploration in the waters off northern Alaska, and there is still some ongoing interest from the industry.

Furthermore, in the futures new technologies "could" reduced the "intrusion" of wildlife in Alaska and be able to extract oil in a more "environment friendly way".

This industries will need to communicate in a fast and stable way, and therefore I believe this could be a major advantage for $ALSK.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ALSK over the next 72 hours.

Additional disclosure: This post shall not constitute an investment advice. Nothing contained herein is a recommendation or endorsement to buy or sell any stock.

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