ATLANTIC TELE-NETWORK $58.24 - Nasdaq symbol ATNI

ATLANTIC TELE-NETWORK $58.24 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340-777-8000; www.atni.com; Shares outstanding: 15.9 million; Market cap: $929.5 million; Yield: 1.8%) closed the sale of its Alltel wireless business to AT&T (symbol T on New York) late last year. As a result, it now holds cash of $407.6 million, or $24.64 a share, and has paid off its $271.1 million of debt.

The company bought Alltel from Verizon Wireless for just $223 million in April 2010.

Atlantic now has wireless and wireline telecom operations in the U.S. Southwest, New England, New York State, Guyana, Bermuda and parts of the Caribbean islands.

Upgrades lead to higher profits

The company continues to focus on upgrading its wireless capacity, cellular coverage and technology. That’s paying off as customers use more mobile data for profitable services like music downloads, mobile gaming and e-books.

In the three months ended June 30, 2014, Atlantic reported revenue of $83.3 million, up 16.3% from $71.6 million a year earlier. Excluding one-time items, earnings jumped to $11.5 million, or $0.72 a share, from $6.4 million, or $0.40.

Atlantic could use its high cash balance for acquisitions or to further expand its remaining operations. It could also raise its dividend or pay special dividends.

Meanwhile, the stock trades at a high 29.9 times the $1.95 a share that Atlantic is forecast to earn this year. It yields 1.9%.

Atlantic Tele-Network is a hold.

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