"With a superior dividend yield, reliable cash flows, and great growth prospects Atlantic Power Corp. (AT) is a solid income investment," says income specialist Carla Pasternak.

The editor of High Yield Investing explains, "The company operates 12 hydro, gas, and coal power generating projects in eight states and an 84-mile transmission line in California. It sells power to major electric utilities under long-term purchase agreements, which provide steady and reliable cash flow.

"Earnings were solid in the third quarter. EBITDA rose 15% in the third quarter and 7% in the first nine months of the year compared to the year-ago periods.

Continue reading Power Up Your Income Portfolio with Atlantic Power (AT)

Power Up Your Income Portfolio with Atlantic Power (AT) originally appeared on BloggingStocks on Wed, 15 Dec 2010 13:15:00 EST. Please see our terms for use of feeds.

"Atlantic Power Corp. (AT) operates 14 power generation projects and one transmission line in the U.S. and sells power mainly to electric utilities in major U.S. markets," notes income specialist Carla Pasternak.

The editor of High-Yield International explains, "Atlantic took a huge step forward when shares became listed on the NYSE on July 23rd. This listing will add recognition and liquidity to the company.

Investors can now more easily purchase shares without the extra commission associated with purchasing foreign securities. The increased exposure that the NYSE brings could also be advantageous to the share price.

Continue reading NYSE Listing Boosts Atlantic Power

NYSE Listing Boosts Atlantic Power originally appeared on BloggingStocks on Mon, 16 Aug 2010 13:00:00 EST. Please see our terms for use of feeds.

Despite all the rumors, the $24.7 billion buyout of Alltel (NYSE: AT) got done. With the credit crunch and botched deals, the stock definitely showed volatility. But, the private equity folks at Texas Pacific Group and Goldman Sachs (NYSE: GS) certainly didn't lose interest in the company. The stock price on the transaction was $71.50.

No doubt, Alltel made some key strategic moves to make itself attractive to private equity sponsors. Perhaps the most important initiative was the spin-off of its wireline business in 2006. Basically, this provided more focus for the company.

To get some more perspective on the deal, I checked out the proxy disclosures. Alltel took the approach of a quicker auction - so as to minimize leaks as well as try to get a better valuation.

Alltel had its financial advisors put together a summary LBO (leverage buyout) analysis. The estimates ranged from $59.75 to $70.50. This assumed that the company could fetch 6.5x to 8x multiples on EBITDA by 2012, which would produce a return ranging from 17.5% to 22.5% per year.

All in all, this looks like a textbook example of a quality deal. Yet, there are certainly risks. After all, Alltel will need to manage a debt load of $23 billion.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Alltel gets its privacy - for $24.7 billion originally appeared on BloggingStocks on Fri, 16 Nov 2007 15:50:00 EST. Please see our terms for use of feeds.

Sprint Nextel dropped soldiers for excessive wireless roaming originally appeared on BloggingStocks on Tue, 10 Jul 2007 11:15:00 EST. Please see our terms for use of feeds.

• Alltel Corporation (NYSE: AT) trading for $67.80 with take-out price of $71.50-12% annualized rate of return.
• Clear Channel Communications (NYSE: CCU) trading for $37.70 with take-out price of $39.20-10% annualized rate of return.
• First Data Corporation (NYSE: FDC) is selling for $32.65 and has a take-out price of $34-for an 18% annualized return.
• Harrah's Entertainment Inc (NYSE: HET) is selling for $85.25 and has a take offer of $90-14% annualized rate of return.
• Tribune Company (NYSE: TRB) is trading at $29.50 with a take-price at $34-30% annualized return.
  
• The most attractive arb play from a return perspective is Tribune but that deal also carries the most risk. Tribune already has a considerable amount of debt and is attempting to add more debt and use the company's ESOP plan to close the deal. In addition, the fundamentals of the newspaper industry continue to remain not very good.

Widening credit spreads means arb profits abound originally appeared on BloggingStocks on Mon, 02 Jul 2007 13:30:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Cheesecake Factory (NASDAQ: CAKE) was downgraded to Sector Perform from Outperform at CIBC, to Outperform from Strong Buy at Raymond James and to Peer Perform from Outperform at Bear Stearns after the company reduced its second quarter guidance.

• Buffalo Wild Wings (NASDAQ: BWLD) was cut to Neutral from Buy at Merriman on valuation.

• Lehman downgraded Alltel Corp (NYSE: AT) to Equal Weight from Overweight as the firm doesn't expect a competing bid for the company.

• Home Depot (NYSE: HD) was cut to Market Perform from Outperform following yesterday's rally and feels that with the HD sale out of the way, the focus will now turn to Home Depot's ability to grow in the challenging do-it-yourself retail market. Goldman cut Nokia to Neutral from Buy on valuation...

• JP Morgan cut Headwaters (NYSE: HW) to Underweight from Neutral.

• Citigroup downgraded Prudential Financial (NYSE: PRU) to Hold from Buy.

• Matrix USA cut Phototronics (NASDAQ: PLAB) to Sell from Hold.

• Ferris, Baker downgraded Gladstone Commercial Corp (NASDAQ: GOOD) to Neutral from Buy.

• Citigroup removed Office Depot (NYSE: ODP) from its Citi Recommended List.

Analyst downgrades 6-21-07: AT, BWLD, CAKE, HD and ODP originally appeared on BloggingStocks on Thu, 21 Jun 2007 11:43:00 EST. Please see our terms for use of feeds.

The trend of private equity firms buying out high tech companies continues. According to Bloomberg News, Silver Lake Partners and TPG will take Avaya Inc. (NYSE: AV) private for $8.2 billion -- the biggest LBO of a computer networking firm ever.

Investors will receive $17.50 a share. That's 4.7% more than yesterday's closing price and 28% more than before speculation about a purchase surfaced on May 29.

This is the latest in a string of high tech LBOs. Recent ones include:

• Acxiom Corp. (NASDAQ: ACXM), this computer and database services provider, said May 16 it's being bought by Silver Lake and ValueAct Capital Partners LP for about $2.24 billion.
• Alltel Corp. (NYSE: AT) this fifth-biggest U.S. wireless service, agreed May 21 to be bought by TPG and Goldman Sachs Group Inc. (NYSE: GS) for $27.5 billion.
• CDW Corp (NASDAQ: CDWC) agreed on May 30 to be acquired by Madison Dearborn Partners LLC for $7.3 billion.

I am not sold on the competitive advantages that will result from this deal. Maybe there's some overhead to be cut but I question how much private equity is willing to invest in R&D to jump start Avaya's product pipeline.

Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned in this post.

Silver Lake Partners and TPG take out Avaya originally appeared on BloggingStocks on Tue, 05 Jun 2007 11:00:00 EST. Please see our terms for use of feeds.

This week's rumor round-up: Lam Research close to sale? originally appeared on BloggingStocks on Fri, 25 May 2007 15:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Deutsche Bank and ABN Amro cut GlaxoSmithKline (NYSE: GSK) to Hold from Buy following the New England Journal of Medicine warnings from Avandia.

• Merrill Lynch cut SanDisk (NASDAQ: SNDK) to Neutral from Buy due to concerns that oversupply in the industry will extend through next quarter.

• Cowen downgraded shares of Lockheed Martin (NYSE: LMT) to Neutral from Outperform based on slower 2007-2008 EPS growth and less cash redeployment upside than General Dynamics Corp (GD) and Raytheon Co (RTN).

• UBS downgraded aQuantive (NASDAQ: AQNT) to Neutral from Buy and RBC Capital cut shares to Sector Perform from Outperform after the Microsoft (MSFT) acquisition...

• Piper Jaffray downgraded Cytyc Corp (NASDAQ: CYTC) To Market Perform from Outperform.

• NetBank, Inc (NASDAQ: NTBK) was downgraded to Underperform from Market Perform at Friedman Billings.

• Merrill Lynch downgraded shares of Aeropostale, Inc (NYSE: ARO) to Neutral from Buy.

• AG Edwards downgraded BHP Billiton Ltd (NYSE: BHP) to Hold from Buy.

• Gabelli downgraded shares of Alltel Corp (NYSE: AT) to Hold from Buy.

Analyst downgrades 5-22-07: AQNT, GSK, LMT, MSFT and SNDK originally appeared on BloggingStocks on Tue, 22 May 2007 10:51:00 EST. Please see our terms for use of feeds.

Sprint-Nextel up on Alltell buyout originally appeared on BloggingStocks on Mon, 21 May 2007 11:55:00 EST. Please see our terms for use of feeds.

Alltel Wireless will be far more competitive following the $27 billion buyout by divisions of Goldman Sachs Group Inc. (NYSE: GS) and Texas Pacific Group.

How fast will Alltel be able to scale its customer base and compete with the big four wireless companies? Much faster as a private company if you ask me.

Without quarterly numbers to hit, the company can pour capital into becoming what it has the potential to be and at some future time re-enter the market for the payoffs for GS Capital Partners and TPG Group. Until then, we'll all see what Alltel can do to compete with the larger carriers over time. With this buyout probably having been in the works for most of 2007, you can bet a solid plan is already in place.

With 12 million customers. Alltel is the fifth-largest wireless company behind AT&T Inc. (NYSE: T), Verizon Wireless, Sprint Nextel Corp. (NYSE: S) and T-Mobile USA. It owns wireless liceneses giving it coverage area bigger than the larger four carriers, which is a huge attraction for the private equity firms who already are drawn to the red-hot wireless industry.

The upside is great for this deal since people are dropping land line telephones and moving to the wireless and Internet telephony.

Now it's time to execute.

Alltel will be more competitive in private hands originally appeared on BloggingStocks on Mon, 21 May 2007 11:16:00 EST. Please see our terms for use of feeds.

Before the bell 5-21-07: Deals boost stocks originally appeared on BloggingStocks on Mon, 21 May 2007 07:53:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the matter, at least three groups of private-equity companies have formed to attempt to purchase wireless carrier Alltel Corporation (NYSE: AT), reported the Wall Street Journal (subscription required).
• The Wall Street Journal's "Heard in Asia" column reported that in order for Sony Corporation's (NYSE: SNE) stock to rise when it reports next week, it is going to have to convince investors that its PlayStation unit is showing improvement.
• The Financial Times (subscription required) reported that almost half of the senior management at Citigroup Inc's (NYSE: C) consumer operations have quit in the last 18 months, as criticism of CEO Chuck Prince has grown.

• According to the Telegraph, Royal Dutch Shell (NYSE: RDS.A) and BP plc ADS's (NYSE: BP) Russian joint venture, TNK-BP, are expected to join the auction for the 537-petrol station network belonging to Yukos. The bidding is expected to start at GBP150M.
• GlaxoSmithKline plc ADR (NYSE: GSK) has begun to promote Alli, the first weight-loss drug to be approved by the FDA for over-the-counter sale, reported the New York Times.

• According to DigiTimes.com, citing industry insiders, Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is looking to up production of Intel Corporation's (NADSAQ: INTC) 802.11n Wi-Fi chips at 0.13-micron in Q3, a sign of closer collaboration between the two companies.

Newspaper wrap-up 5-9-07: Private equity looking at Alltel originally appeared on BloggingStocks on Wed, 09 May 2007 09:15:00 EST. Please see our terms for use of feeds.

Before the bell 5-9-07: Awaiting the Fed, stock futures lower originally appeared on BloggingStocks on Wed, 09 May 2007 07:47:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's "Weekday Trader" column wrote that the takeover talk in telecom stocks Alltel Corporation (NYSE: AT), Qwest Communications International Inc (NYSE: Q), and Sprint Nextel Corporation (NYSE: S) may be overblown, as the logical acquirers for the companies appear uninterested, according to people familiar with the sector.
• The Wall Street Journal reported that Dolan family, founders of Cablevision Systems Corporation (NYSE: CVC), are on the verge of taking the company private in a deal estimated to be worth about $10.5B.
• The Wall Street Journal's "Heard on the Street" column discussed Rupert Murdoch's $5B play for Dow Jones and Company (NYSE: DJ), saying the Bancroft family may eventually find it difficult not to take Murdoch's offer.

• The U.K. Times has learned that the U.S. Department of Justice is in talks to launch a formal inquiry into "alleged bribery and corruption" at BAE Systems (OTC: BAESY).
• According to a New York Post exclusive, Gap Inc (NYSE: GPS) is considering sizeable layoffs, to reduce expenses at the struggling retailer.

Newspaper wrap-up 5-2-07: Cablevision on the verge of going private originally appeared on BloggingStocks on Wed, 02 May 2007 09:15:00 EST. Please see our terms for use of feeds.

Alltel (NYSE: AT) volatility is Elevated as arbitrageurs wait for strategic alternatives.

• AT, a customer focused communications company with operations in 36 states, has a market cap of $21 billion with long term debt of $2.7 billion.
  
• AT is reviewing its strategic alternatives. Robert Baird says: "We believe that in an acquisition scenario that AT could fetch closer to $70 per share. However, aside from M&A potential, we believe the shares are currently trading near fair value."
  
• AT May option implied volatility of 28 is above its 26-week average of 22 according to Track Data, suggesting larger near-term price risks.

International Securities Exchange (NYSE: ISE) volatility collapses. The company is in advanced talks.

• ISE is recently up $19.08 to $64.81.
  
• The Deutsche Boerse confirmed it is in talks to buy ISE. The ISE confirmed it is in advanced talks to sell itself.
  
• ISE May at the money option implied volatility of 18 is below a level of 34 from last week and below its 26-week average of 41 according to Track Data, suggesting decreasing risk.

Option volume leaders today are: Apple Inc. (NASDAQ: AAPL), Amazon (NASDAQ: AMZN) and Dendreon (NASDAQ: DNDN).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Option update 4-30-07: ISE is in advanced talks with Deutsche Boerse originally appeared on BloggingStocks on Mon, 30 Apr 2007 13:22:00 EST. Please see our terms for use of feeds.

This week's rumor round-up: New Century to go bankrupt? originally appeared on BloggingStocks on Fri, 09 Mar 2007 15:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal (subscription required) reported that Alltel Corporation (NYSE: AT) is stepping up efforts to sell itself. People familiar with the matter said that Alltel has made "overtures" to AT&T Inc (NYSE: T) but that AT&T is skeptical about a potential combination due to antitrust problems, technology-integration issues and Alltel's stock-market capitalization.
• According to the Wall Street Journal, citing people familiar with the matter, Palm Inc (NASDAQ: PALM) has hired Morgan Stanley (NYSE: MS) to help explore strategic options, including a potential sale of the company, an investment by private equity or purchase of its own.
• The Wall Street Journal reported that former Attorney General John Ashcroft has been hired by opponents of the XM Satellite Radio Holdings Inc (NASDAQ: XMSR) and Sirius Satellite Radio Inc (NASDAQ: SIRI) deal, claiming that the merger will leave only provider in the market.
• The Financial Times (subscription required) reported that General Motors Corporation (NYSE: GM) has announced plans to build a low-priced vehicle, to be built and sold in emerging markets including India, China and Russia.

• The U.K. Times reported that HSBC Holdings plc (NYSE: HBC), Europe's largest banking group, said it was taking a $10.6B charge against bad loans, mostly in the U.S.
• The U.K. Times also reported that Ford Motor Company (NYSE: F) is in exclusive talks with Prodrive, the sports racing company, over a potential GBP450M sale of Aston Martin.
• The Telegraph reported that Apax is said to be the frontrunner for Claire's Stores Inc (NYSE: CLE) with a $3B offer, the deadline for final bids is said to be Wednesday.
  

Newspaper wrap-up 3-5-07: Alltel looking to sell itself originally appeared on BloggingStocks on Mon, 05 Mar 2007 09:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• L-3 Communications Holdings Inc (NYSE: LLL) was downgraded by Bank of America to Neutral from Buy based on valuation, as they see limited upside from current levels. The firm's target for L-3 is $92.
• NewMont Mining Corp (NYSE: NEM) was downgraded by RBC Capital Markets to Underperform from Sector Perform based on Newmont's weak production profile and declining financial forecasts. The firm lowered its price target for Newmont to $48 from $52.

• K Swiss Inc (NASDAQ: KSWS) was downgraded by Susquehanna to Neutral from Positive. The firm does not believe domestic sales will stabilize until 2008 and sees European growth being less robust over the next several quarters.
  
• Alltel Corporation (NYSE: AT) was downgraded at Deutsche Bank to Hold from Buy on valuation. The firm's target for Alltel is $63.

Analyst downgrades 2-23-07: Newmont Mining downgraded to Underperform originally appeared on BloggingStocks on Fri, 23 Feb 2007 12:20:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Following the withdrawal of Orapem, Forest Laboratories Inc (NYSE: FRX) was downgraded to Sell from Hold at Citigroup, with a $47 target, given the company's dependence on two products and early stage pipeline.

• The St. Joe Co (NYSE: JOE) was downgraded to Underperform from Market Perform at Wachovia, citing valuation and secondary-home sale activity which continues to pressure steady primary-home activity in core markets; BB&T also downgraded St. Joe, to Hold from Buy on valuation.

• Deutsche Bank downgraded Tyco Int'l Ltd (NYSE: TYC) to Hold from Buy on valuation with a $33 target, as they find shares fairly valued heading into the separation.

• Bank of America downgraded Alltel Corp (NYSE: AT) to Neutral from Buy on valuation and lowered its target to $58 from $66.

• UBS downgraded Sohu.com Inc (NASDAQ: SOHU) to Neutral from Buy, with a $28 target, following second-quarter results. Lehman Brothers downgraded Sohu.com to Equal Weight from Overweight on the news.

• Merrill Lynch downgraded Centerne Corp (NYSE: CNC) to Sell from Neutral.

• Merrill also downgraded Ingersoll-Rand Co Ltd (NYSE: IR) to Neutral from Buy, citing weakness in the residential market and execution uncertainty for the downgrade.

• Bank of America downgraded Post Properties Inc (NYSE: PPS) to Sell from Hold following the company's Q4 report and guidance.

• BB&T downgraded Oakley Inc (NYSE: OO) to Hold from Buy on valuation.

Analyst downgrades 2-07-07: Forest Labs downgraded to Sell at Citigroup originally appeared on BloggingStocks on Wed, 07 Feb 2007 11:22:00 EST. Please see our terms for use of feeds.