Carson Block’s Muddy Waters Says American Tower May Tumble 40%
July 18, 2013 Leave a comment
Carson Block’s Muddy Waters Says American Tower May Tumble 40%
American Tower Corp. (AMT), the operator of cell-phone antennas whose stock has almost tripled since 2008, is engaged in a “value-destroying investment binge” that will knock its shares down 40 percent, according to short-seller Carson Block. “AMT has serious challenges domestically and internationally that have not been factored into the stock price,” Block’s firm, Muddy Waters Research, wrote in a report published on its website today. The Boston-based real-estate investment trust has a market value of $28.6 billion, data compiled by Bloomberg show. American Tower has overstated the value of acquisitions in the U.S. and Brazil, according to the report. The stock is worth $44.57 a share, about 40 percent below the trading price, Muddy Waters said. Shares retreated 3 percent to $72.50 at 10:22 a.m. in New York after falling as much as 4.3 percent. Matt Peterson, an American Tower spokesman, didn’t immediately respond to a message seeking comment.To contact the reporters on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net; Scott Moritz in New York at smoritz6@bloomberg.net
Jul 17, 2013
Muddy Waters Bets Against American Tower in First U.S. Move
By Juliet Chung
Short-selling firm Muddy Waters, run by Carson Block, is betting against wireless and broadcast-tower provider American Tower Corp. AMT -1.35%, according to a report released on its website Wednesday.
Block tweeted his call against American Tower via his Muddy Waters account and posted a report on the firm’s website, saying American Tower was a “strong sell.”
The call is the first since Block set his sights on U.S. companies. A person familiar with the decision said Block chose American Tower because he is concerned it is overvalued and has too much exposure to emerging markets.
Block rose to fame after his 2011 bet against Chinese forestry company Sino-Forest Corp.
American Tower shares closed Tuesday at $74.71, valuing the company at about $30 billion. In early trading Wednesday, the shares fell $3.15, or 4%, to $71.56.
A spokeswoman for American Tower, based in Boston, did not immediately return a call for comment.
In the report, Muddy Waters valued American Tower shares at $44.57, saying the firm faced “serious challenges” in the U.S. and abroad that Wall Street analysts had overlooked.
American Tower “has engaged in a value destroying investment binge overseas,” the report said.
Muddy Waters said share sales by American Tower Chief Executive James Taiclet “reflect a lack of faith in the sustainability of AMT’s business.”
Block’s warning about companies with exposure to emerging markets is not new.
At a hedge-fund conference in May, Block said he was betting against the debt of U.K. bank Standard Chartered PLC, STAN.LN +0.23% in part, because of its exposure to markets such as China and Southeast Asia.
About bambooinnovator
Bamboo Innovator 