Strong And Under The Radar: Atlantic Tele-Network (ATNI)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Atlantic Tele-Network ( ATNI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Atlantic Tele-Network as such a stock due to the following factors:

  • ATNI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.3 million.
  • ATNI is making at least a new 3-day high.
  • ATNI has a PE ratio of 31.
  • ATNI is mentioned 0.65 times per day on StockTwits.
  • ATNI has not yet been mentioned on StockTwits today.
  • ATNI is currently in the upper 20% of its 1-year range.
  • ATNI is in the upper 35% of its 20-day range.
  • ATNI is in the upper 45% of its 5-day range.
  • ATNI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ATNI:

Atlantic Tele-Network, Inc., through its subsidiaries, provides wireless and wireline telecommunications services in North America, Bermuda, and the Caribbean. The company operates through five segments: U.S. Wireless, International Integrated Telephony, Island Wireless, U.S. The stock currently has a dividend yield of 1.7%. ATNI has a PE ratio of 31. Currently there is 1 analyst that rates Atlantic Tele-Network a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Atlantic Tele-Network has been 49,900 shares per day over the past 30 days. Atlantic Tele-Network has a market cap of $1.1 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.46 and a short float of 2.5% with 4.38 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Atlantic Tele-Network as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 13.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ATNI's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.03, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 492.40% to $35.45 million when compared to the same quarter last year. In addition, ATLANTIC TELE-NETWORK INC has also vastly surpassed the industry average cash flow growth rate of -0.66%.
  • 39.94% is the gross profit margin for ATLANTIC TELE-NETWORK INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.83% is in-line with the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Diversified Telecommunication Services industry and the overall market, ATLANTIC TELE-NETWORK INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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