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Is Anterix Inc. (ATEX) A Smart Long-Term Buy?

·4 min read

Roubaix Capital LLC, an investment management firm, published its ‘Roubaix Fund Composite’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 26.63% was recorded by the fund for the Q4 of 2020, outperforming its HFRI Equity Hedge benchmark that delivered a 14.50% return but below its Russell 2000 index that had a 31.37% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Roubaix Capital, in their Q4 2020 Investor Letter, said that Anterix Inc. (NASDAQ: ATEX) has a strong potential of joining the economy's upward move post pandemic. Anterix Inc. is a wireless communications applications company that currently has a $713.1 million market cap. For the past 3 months, ATEX delivered a 47.40% return and settled at $40.55 per share at the closing of February 16th.

Here is what Roubaix Capital has to say about Anterix Inc. in their Q4 2020 investor letter:

"We also maintain many long positions in companies that are not specifically tethered to the current backdrop. Instead, either the merits of the business, the development of the thesis or the strength of a trend control the expected outcome. One such position, which we have discussed in the past and remains a large position for the Composite, is Anterix (ATEX). The company owns spectrum approved for dedicated enterprise networks for critical infrastructure industries, among others. This spectrum will allow users to build fully private high speed data networks to capture the value of the internet of things, while at the same time having a higher level of secure communication and infrastructure. In May 2020, company’s plan for its 900 MHz spectrum was approved by the FCC. More recently in December 2020, the company announced its first commercial contract with Ameren (AEE) for a 30 year spectrum lease for a private LTE network with a further 10 year renewal option. This sets the precedent for future contracts. As the company scales with more contracts in 2021, the high margin business model will come into focus and should drive the shares. We also see the potential for the new administration to increase infrastructure spending and emphasize grid security as ways to drive employment and in reaction to a recent high profile government hack, respectively."

16 Countries That Cheat the Most in the World
16 Countries That Cheat the Most in the World

Surasak Ch/Shutterstock.com

Last December, we published an article telling that Anterix Inc. (NASDAQ: ATEX) shares was flat at the end of the last quarter. ATEX delivered an impressive -15.59% return in the past 12 months.

Our calculations show that Anterix Inc. (NASDAQ: ATEX) does not belong in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

https://youtu.be/OgBhPDmWMtI

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.

Disclosure: None. This article is originally published at Insider Monkey.