ATLC - Atlanticus Holdings: Putting Its Money Where Its Mouth Is

• On May 11, 2022, Atlanticus reported 1Q22 results with earnings for the quarter of approximately $2 per diluted share; we calculate cash earnings of approximately $3 per diluted share.
• The company disclosed that it purchased over 1 million of its shares in the quarter, representing approximately 5% of the diluted shares outstanding (a potential run-rate of 20% per year).
• With approximately $20 per diluted share of cash, it appears that the market (at the time we write this report) is valuing Atlanticus’ business at around $10.
• It seems to us that, similar to when we published our first report, management may be understating the earnings potential of the company while repurchasing shares at attractive levels.
• We believe that Atlanticus' shares are worth in excess of $100 per diluted share; with the stock at $30 per share (and $20 per share of cash) this could be the "fat pitch" investors look for.

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