Manage episode 303501539 series 2789730
Leo Kang, author of the excellent Plum Capital Substack, comes on to discuss his thesis on Atento (ATTO). With 3 legacy private equity holders owning more than 60% of the stock, Leo think the company is set for a sale, and a cheap multiple, continued operating momentum, and health dose of leverage could create for serious upside in a process.
Leo's ATTO write up: https://plumcapital.substack.com/p/at...
My ATTO notes: https://twitter.com/AndrewRangeley/st...
1:30 ATTO overview
3:15 ATTO's ownership history
7:45 The "Big 3's" incentive to sell
9:20 Pushing back on the sales incentive
13:50 Discussing valuation
15:30 ATTO's operating momentum
18:30 What does ATTO do?
22:30 How does ATTO compete with?
24:30 Is there a trend towards insourcing costumer service?
28:15 What happens if ATTO's loses the Telefonica contract?
33:30 Can we read anything into ATTO's lack of capital returns?
37:55 Discussing the upside from the Telefonica contract
40:20 Comping peer multiples
43:05 Does the Telefonica contract line up well with a sales process?
46:25 ATTO's attempts to move into the U.S.
50:45 ATTO's foreign exchange risk
52:55 Closing thoughts