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.
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
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
