Opinions
Paul Harris, CFA
Atlas Cold Storage Income Trust
FZR.UN-T
WEAK BUY
Mar 28, 2005
An interesting story at these levels. Had some issues on accounting which they seem to have gotten through. Restructured. A large part of their revenue comes from the US so will be affected by a stronger Cnd$. The business uses a lot of power. Doesn't expect a huge run up on the stock.
$5.880
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BUY
Just bought some a month ago based on the new management which is squeaky clean. Although some areas of their operations are a little bit weak, they think they will come back. Have a high debt level and paying pretty high yields on that debt, so with the cash flows that are coming in they are going to pay down the debt for the rest of the year, so no distribution until next year.
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BUY
Has not acted well recently. Had 2 quarters in a row of improvement in their EBITDA. Focused now on selling some non-core assets to help reduce their debt. Once that gets down, they'll reinstitute the distribution and the stock should do better. Feels the distribution will be back on '06.
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BUY
Feels they've cleaned up their act. Their accounting numbers are much better than they were in 2003. Most of the fees that were involved in their restructuring will go away this year which will improve cash flows. The warehouse sector in the US is improving. Probably undervalued at these levels.
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