Author Topic: ATTO - Atento  (Read 15749 times)

StevieV

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Re: ATTO - Atento
« Reply #80 on: July 08, 2020, 07:09:39 AM »
Safety - Any idea what is going on this week?


SafetyinNumbers

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Re: ATTO - Atento
« Reply #81 on: July 08, 2020, 07:15:54 AM »
Safety - Any idea what is going on this week?

I think people or computers got excited about the multiple 13D filings (from HPS and GIC) but other than that, I have no idea. They were filed Monday night and the stock jumped in after hours and continued yesterday.



SafetyinNumbers

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Re: ATTO - Atento
« Reply #82 on: July 29, 2020, 05:17:21 AM »
Some recent updates:

- ~5 for 1 share consolidation approved  yesterday and effective tomorrow for trading.

- The new board members from HPS, GIC and Farallon were all officially appointed to the BOD as well.

- The company's 2022 bonds traded above 90 for the first time since March.

- recent USD weakness could translate to BRL strength which would be incredibly bullish but we are still a long way to get back to pre-covid levels.

I expected EBITDA to be down significantly quarter over quarter when they report next week but they might be able to defer enough payables to be free cash flow positive. We'll also find out if they were active on the buyback which might send a signal over their comfort on liquidity.

SafetyinNumbers

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Re: ATTO - Atento
« Reply #83 on: July 30, 2020, 11:56:51 AM »
My working theory is that today's sell off is people not realizing the shares are consolidated and selling their win fall profits.

Obviously, it's a volatile stock but the volume on an adjusted basis is the highest this year and I can't see another catalyst for big volume.

It sounds silly even writing it but 2020 has been anything but normal.

capitalg

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Re: ATTO - Atento
« Reply #84 on: July 31, 2020, 10:52:22 AM »
Strange trading action today...

SafetyinNumbers

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Re: ATTO - Atento
« Reply #85 on: July 31, 2020, 11:13:09 AM »
I think related to my comment from yesterday. Overselling kicked off some short covering and then momentum traders also jumped on. Wild stuff.

SafetyinNumbers

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Re: ATTO - Atento
« Reply #86 on: August 06, 2020, 04:26:22 AM »
I really liked the Q2 results reported last night. It was much better on free cash flow and overall profitability appears to have recovered in June. Revenue in USD is down a lot given their exposure to Latin American currencies but that was expected.

https://s3.amazonaws.com/mz-filemanager/89e54f51-9039-43b3-9c2c-45e55fab990c/61af9c48-ac2d-4ad6-a83c-d65bef0e18fa_fiscal%202020%20q2%20earnings%20release%20080520.pdf

The most important news is they have started the process to refinance the senior notes due in August 2022 and unlock shareholder value. The bonds should trade up from the recent price of 92.

StevieV

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Re: ATTO - Atento
« Reply #87 on: August 06, 2020, 09:46:17 AM »
I thought it was positive as well.  The stock has bounced around a bit today, but up a bit as I type.

I didn't view the announcement of beginning the financing process as that significantly favorable as you appear to have.  I think that is pretty much a given.  The key will be getting the financing done and at what terms.

Is your assumption that the announcement that they have started the process means they think things are or will go reasonably well?

Anything from the conference call of note?

SafetyinNumbers

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Re: ATTO - Atento
« Reply #88 on: August 06, 2020, 10:01:02 AM »
I thought it was positive as well.  The stock has bounced around a bit today, but up a bit as I type.

I didn't view the announcement of beginning the financing process as that significantly favorable as you appear to have.  I think that is pretty much a given.  The key will be getting the financing done and at what terms.

Is your assumption that the announcement that they have started the process means they think things are or will go reasonably well?

Anything from the conference call of note?

They didnít get into too much detail on the financing except that new financing would be done at terms that are beneficial to all stakeholders including shareholders which includes the cost of debt.

They bought about 80k shares (post consolidation basis) and it sounds like buybacks would continue.

Itís worth a watch. Itís the first company I have seen do a video chat for a conference call. I think they are saying and doing the right things. Hopefully, itís just a matter of time.

At least the Robinfolk got everyone to keep sell orders outstanding so if any new buyers want in, there should be more supply this time around between 8 to 18 than there was last week.