Leo Kang from Plum Capital on $ATTO

56:25
 
Share
 

Manage episode 303501539 series 2789730
By Andrew Walker. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

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...
Chapters
0:00 Intro
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

123 episodes