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Atlantic Power Insiders Keep Buying Despite Legal Troubles
Posted by: Monica Wolfe (IP Logged)
Date: April 11, 2013 04:59PM

Atlantic Power (NYSE:AT) (TSX:ATP) has really been struggling the past few months. They have been accused of hiding information, had several class action law suits filed against them, and now the company’s price has dropped drastically since the beginning of the year. Despite these problems several directors have been buying back into the company while it is sitting at a three-year low price. Director Duncan Foster has added 7,000 shares this month at an average price of $4.78 per share. His total amount on these transactions was $33,280. Foster now holds on to 8,700 shares of Atlantic stock.

Director John McNeill added 12,000 shares at $5.11 per share for a total of $61,320. McNeill now holds on to 24,500 shares.

Lastly, Director Irving Gerstein bought 9,400 shares at $5.16 per share. He spent $48,504 on this transaction. Gerstein now holds 19,800 shares.



As you can see from the graph above, the company’s price plummeted in January of this year as several class action lawsuits were initiated against Atlantic Power. These lawsuits allege that Atlantic Power issued materially false and misleading statements regarding the company’s business practices and financial results. The time frame being investigated is between July 23, 2010 and March 4, 2013.

In an attempt to salvage some of the public relations problems Atlantic Power is currently facing, the company adopted an Advance Notice Policy. This policy gives a deadline in which shareholders are required to notify the corporate secretary of their nominations for the board of directors prior to any annual or special meeting of a shareholders. The policy also includes updates to other policies that the company already has in place.

Atlantic Power owns and operates power generation and infrastructure assets in the US and Canada. The Company’s power generation projects sell electricity to utilities companies as well as other large entities that disperse electricity.

According to the GuruFocus analysis, Atlantic Power’s revenue has been in a decline for the past five years. Also, the operating margin has been a five-year decline as well. The average rate of decline per year is -48.5%. On the other hand, the dividend yield of the company is near a 3-year high of 23.37%.

NYSE:AT

Market Cap: 571.1 M P/E: n/a Shiller P/E:
P/B: 0.6 P/S: 1.3 EV/EBITDA: 21.8
52 Week Low: 4.70 52 Week High: 15.18 Average Volume: 2.36 M


TSX:ATP

Market Cap: 580.74 M P/E: 42 Shiller P/E: 2.7
P/B: 0.59 P/S: 1.2765 EV/EBITDA: 21.8
52 Week Low: 4.64 52 Week High: 15.12 Average Volume: 327,300


Jim Simons holds 392,800 shares of NYSE:AT.

With its shares up 2.49% in America, Atlantic Power trades at $4.94. The company’s shares are up 1.03% in Canada, it trades at $4.91.


Stocks Discussed: AT, TSX:ATP,
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Re Atlantic Power Insiders Keep Buying Despite Legal Troubles
Posted by: Cornelius Chan (IP Logged)
Date: April 11, 2013 08:02PM

Despite net earnings losses (progressively worse btw) since 2009, shares of ATP have only fallen from a rising trajectory since last November... Mr. Market never ceases to amaze me.

The current price looks like a gift. Too bad the company is too hard to value properly due to 9 years of net earnings losses out of 10, negative return on equity 9/10 years, declining operating margin and declining book value.


Stocks Discussed: AT, TSX:ATP,
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