ATEA Due Diligence Summary:
ATEA is up 100% this year, but is still trading at a huge discount.
ATEA announced $.34 EPS in Q4 2010. The CEO said that 2011 will have sustained sales growth and profitability.
ATEA International sales are exploding due to customer growth and the falling U.S. dollar.
2010 international sales increased 77% to $11,155,000.
ATEA trades at a P/S ratio of 0.6 compared to the Industry average of 2.7. If ATEA traded at even HALF the sector average it would be $12.
The most successful U.S. hedge fund, Renaissance Capital, owns ATEA. Renaissance has an army of engineers and MBA's scouring for undervalued stocks.
The workforce management sector is BOOMING, with competitors like CKSW forecasting 20% growth for 2011.
ATEA has slashed costs to the bone. Selling and administrative expenses have fallen 25% from 2007 levels.
ATEA has a tightly held 1.1 Million float. It can move very fast, in 2005 went from $8 to $18 in a month.
In short, ATEA has all the ingredients to go much higher in a very short time frame.
HIGHLIGHTS:
- Profitable.
- 1.1 MM float that is 50% owned by institutions.
- $20 MM market cap
- Traded at $20 share price in 2006 with similar levels of revenue and profits.
-Major players in sector (CKSW) have gained up to 300% while ATEA is still under the radar.
- Frequently mentioned as acquisition candidate because of industry consolidation.
- Company hiring at all worldwide locations due to ramp up in order and backlog growth.
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