ATLANTIC TELE-NETWORK $67.08 - Nasdaq symbol ATNI

ATLANTIC TELE-NETWORK $67.08 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.9 million; Market cap: $1.1 billion; Dividend yield: 1.7%) 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 $423.7 million, or $26.65 a share, and has paid off its $271.1 million of debt.

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.

The company continues to upgrade 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.

High cash balance provides options

In the three months ended September 30, 2014, Atlantic reported revenue of $89.4 million, up 12.7% from $79.4 million a year earlier. Excluding one-time items, earnings jumped to $16.2 million, or $1.01 a share, from $1.6 million, or $0.10.

Atlantic raised its quarterly dividend by 7.4%, to $0.29 a share from $0.27, with the October 2014 payment. The stock now yields 1.7%.

The company could use its high cash balance to make acquisitions or expand its remaining operations. It could also further raise its dividend or pay special dividends. Meanwhile, the stock trades at a high 20.3 times the $3.30 a share that Atlantic is forecast to earn in 2015.

Atlantic Tele-Network is a hold.

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