ATN holdings, Inc. (ATN, the “Company”) sources of revenue are from real estate and health care. The Company has the following corporate structure:
PLDI and AHCDC are both engaged in the real estate industry while MCPI is in the health care industry. PLDI is the developer and major owner of the 48 storey Summit One Tower and its adjacent 6 storey parking building. AHCDC is engaged in developing residential properties around Ever Gotesco in Pasig City. MCPI has investments in outpatient clinics and claims that one hundred doctors manage the health care needs of the fifty thousand client patients.
The Company has investments in Transpacific Broadband Group International (TBGI) which has a market value of P37 million as of December 31,2012 and classified as “available for sale”.
TBGI was initially an investment agreement with Unipage Management Inc. (UMI) where the company invested P30 million for 30% interest and UMI invested P79 million for 40% interest in TBGI. In 2010, the agreement was terminated and UMI is selling TBGI shares in behalf of ATN. As of December 31, 2012, ATN has P65 million receivable from UMI.
ATN intends to pursue opportunities in renewable power generation by investing in a 30 MW solar photovoltaic power generation project under ATN Solar Energy Group, Inc. (ATN Solar) to be located in the 320 hectare property of PLDI in Montalban Rodriguez, Rizal.  ATN Solar 50% owned by ATN and 30% owned by TBGI already has a service contract for the Solar Power project as of December 2012.  As of March 31, 2012, ATN Solar is not yet in commercial operations and certain conditions are yet to be finalized including supply of material, project financing, and government permits.
Strong balance sheet
As of December 31, 2012, ATN has P414 million long-term debts of which P16 million are non-refundable deposits from clients and P376 million from deferred tax liabilities or a total P392 million float or debts that has negligible risk that a third party will demand payment.
Bank Loans are foreign denominated
ATN has P30 million yen denominated and P2.8 million dollar denominated bank loans. Due to the strengthening of peso, the Company recognized P6 million unrealized gain on these loans. In simpler terms, ATN can gain P6 million should they extinguish their foreign denominated debts.
It should be expected that this unrealized gain can still increase with the weakening of the Yen currency.
Trading at substantially below book
ATN has a book value of 3.05 as of December 2012.
Management has majority interest in the Company
ATN’s management is interesting. The CEO does not receive compensation for the last five years from the Company to signify his support and solidarity with the Company’s stockholders. The officers receive their compensation directly from the CEO.
The CEO also has high ownership in the Company which stands at 61% of the total outstanding shares as of June 30, 2012.
Insiders that disagree with ATN management might sell more shares in the market
On December 28, 2011, the Company declared 2% stock dividend, increase in authorized capital stock from P200 million to P1.2 billion, and 1:6 share rights offering.  On May 3, 2012, Blue Stock Holdings Development, Inc. (Blue), a shareholder of 15% filed a complaint against the Company regarding the increase in authorized capital stock. 
On February 14 and March 4, 2013, Blue disclosed the sale of 6.383 million and 7.578 million ATN and ATNB shares respectively.
Unprofitable Health care business
The Company’s health care business does not contribute to ATN’s profit:
The Company should be better off without their health care business. As of March 31, 2013, the Company appears to reduce their health care operations. The surge in net loss may probably be caused by settlement of employee obligations.
The Company venturing into the capital intensive solar energy power is not a smart move, in my opinion, considering that ATN generates poor cash flows. However, with approved feed-in tariff of P17.95 per kWh for solar power, the Company may be able to obtain the needed financing. I would appreciate though if the Company would find other ways to utilize its valuable 320 ha property.
I would like to see the Company refinance its debts and settle the Yen and Dollar denominated loans in its books to take advantage of the strong peso which the Company appears to be doing.
In my opinion, ATN and ATNB is a company worth valuing half its book value or at P1.50.
- ATN Philippines Solar Energy to invest P5.68 B in 30-MW power project, http://www.philstar.com/business/721460/atn-phils-solar-energy-invest-p568-b-30-mw-power-project
- Awarded Solar Projects as of December 2012, http://www.doe.gov.ph/RE%20Regis&accred/Awarded%20Contracts/Solar/Solar.pdf
- Results of Board of Directors’ meeting: stock dividend declaration, stock rights offering, appointment of officer, http://www.pse.com.ph/resource/disclosures/2011/pdf/dc2011-8923_ATN.pdf
- Complaint filed with SEC re: Blue Stock Holdings Development, Inc. vs. ATN Holdings, Inc. et. Al for nullification, revocation and cancellation of increase in capital stock, http://www.pse.com.ph/resource/disclosures/2012/pdf/dc2012-3309_ATN.pdf
Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell.