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Topic: Growth Stocks

ATLANTIC TELE-NETWORK $71.94

ATLANTIC TELE-NETWORK $71.94 (Nasdaq symbol ATNI; TSINetwork Rating: Extra Risk) (340-777-8000; www.atni.com; Shares o/s: 16.1 million; Market cap: $1.2 billion; Dividend yield: 1.8%) owns wireless and land-line operations in the U.S., Bermuda, the Caribbean and Guyana. It also owns solar power plants that sell electricity under long-term contracts.

The company has now purchased the development business of U.K.-based Armstrong Energy Global. Armstrong develops, builds and owns solar farms in India.

Over the next six to nine months, Atlantic plans to build solar plants in India with generating capacity of 50 megawatts. The company sees India’s favourable climate and unmet energy needs as ideal for solar power operations. It believes that solar energy development costs in many regions of India have reached grid parity. That means Atlantic can generate electricity at a profit without relying on direct government subsidies— something rarely, if ever, accomplished.

Expanding in India adds diversification. But entering markets beyond its telecom expertise also adds risk. This is especially the case in riskier political areas such as India.

Atlantic Tele-Network is a hold.

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