Muddy Waters has declared the emperor wears no clothes at American Tower Corp (NYSE:AMT) They have a few interesting points which I leave the readers to do their own due diligence on. Muddy Waters traditionally has a modus operandi of making it look very bad.
Management should be responding shortly. Documents have been sent to the SEC which confirm Muddy Waters reasoning. What about the investment firms that have signed off on AMT and producing glowing reports.
Fitch Ratings upgraded American Tower REIT’s credit ratings by a notch, pointing to what they felt were the company’s strong free cash flow and margins as well as its low business risk model.
The firm bumped AMT’s issuer-default rating to triple-B, which is two steps into investment territory, from triple-B-minus. The outlook we are told is stable is stable. Muddy Waters disagrees with a few points.
On May 21 Macquarie raised the stock to outperform from neutral.
On May 17 Barclay’s started coverage on the stock with an overweight.
In the meantime if you follow any regulatory financial releases from the company the numbers were not looking so good. At least to my eyes.
Going to be a lawyers delight.
George Gutowski writes from a caveat emptor perspective.