ATER short squeeze info. small float 20M shares. W
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Posted On: 09/07/2021 3:41:14 PM
ATER short squeeze info. small float 20M shares. Was $48/share in March. There is a gap to fill at $18/share on the daily.
There’s a conference call from ATER CEO coming Thursday from a road show. And Short interest is now over 65% of the float and CTB jumping daily now avg. 74% cost to borrow
Almost 100% utilization, It is coming together nice here guy's
Fireside chat with the CEO coming Thursday Sept 9th, 2021
The CEO and other insiders locked up their shares 3.8M until end of 2021- https://www.globenewswire.com/en/news-release...lders.html
They also have amazing software
$ATER (Aterian, formerly known as Mohawk) core business model is predicated on using large amounts of data and an agile supply chain to efficiently launch and manage consumer products on marketplaces such as Amazon and Walmart (the two largest third-party ecommerce platforms in the US). $ATER is a tech-enabled CPG company (consumer packaged goods) using their proprietary AI software called AIMEE (AI marketplace ecommerce engine) in 3 different ways:
BUILD: use AIMEE to maximize growth of existing brands across different marketplaces as well as identify category opportunities then leverage their agile supply chain to create and launch new brands
ACQUIRE: use AIMEE to identify acquisition targets, then acquire other brands with strong product portfolio and marketplace track record at accretive multiples
PARTNER: generate revenues by allowing other ecommerce brands to use AIMEE as a SaaS product thus enabling them to better manage their supply chain, marketing channels, ad spend, inventory levels, etc.
There’s also a great opportunity for $ATER to expand their existing brands and acquired brands across multiple marketplaces including international expansion opportunities.
To understand how their products are received by consumers, check out any of their products on Amazon, nothing less than 4.5 stars. Their Air Conditioner (hOmelabs brand) just became the Best Seller beating LG, Emerson and Fridgiaire.
Aterian, a tech enabled Consumer Product Company. That still doesn't say jack, here's a rundown of what the company does:
Aterian sells unbranded consumer products such as ACs, dehumidifiers, refrigerators, dishwashers, etc. on marketplaces such as Amazon, Walmart, etc. Many products are (one of) the best ranked in their category, which makes it extremely difficult to compete with these products.
The company is able to launch new products and get them to the #1 position in their category relatively quickly. They also acquire existing products to grow inorganically (buy and build), more on that later.
The company has grown revenues ~70% YoY since 2017 (!). Revenues were a mere ~$35 mln in 2017 and $186 mln in 2020, with 2021 project revenues around $350 mln.
Investment thesis
The company has significant organic sales growth, which is accelerated by the company's buy-and-build strategy of e-commerce brands and products. Aterian was one of the first companies to apply this strategy in this niche, and now other companies such as Thrasio are doing the same. In case you don't know, buy-and-build is typically used by private equity funds as it offers very attractive returns, because...
Buy-and-build M&A creates value in two ways: multiple arbitrage and higher margins. Aterian acquires smaller companies at low multiples (lower than Aterian's) and there is significant cost cutting opportunity after acquisition (i.e. less personnel and back-end integration).
The company should become profitable this year, which enables the company to use its cash flows and debt for M&A instead of diluting stock offerings.
Conclusion
Solid company with amazing growth potential
AI driven tech offers multiple revenue streams
Undervalued because shorts based on publishing inaccurate and misleading short report
Short interest of 65%
I like tendies, do you?
Gorilla wants to go to the moon
This is not financial advice
Hedge funds have also increased their position last year (based on reported thus far - some 13Fs still to be filed (source). Based on 13Fs reported so far, hedge funds have increased their position in Q1 and Q2 2021
While this could be an attractive opportunity already, company is quite heavily shorted - and some shares on loan will need to be bought back due to Failure-to-Delivers (FTD).
Several pending acquisitions once supply chain costs stabilize according to comments in last 10Q. revenue has increased from 16M to 185M since 2016 through M&A
There’s a conference call from ATER CEO coming Thursday from a road show. And Short interest is now over 65% of the float and CTB jumping daily now avg. 74% cost to borrow
Almost 100% utilization, It is coming together nice here guy's
Fireside chat with the CEO coming Thursday Sept 9th, 2021
The CEO and other insiders locked up their shares 3.8M until end of 2021- https://www.globenewswire.com/en/news-release...lders.html
They also have amazing software
$ATER (Aterian, formerly known as Mohawk) core business model is predicated on using large amounts of data and an agile supply chain to efficiently launch and manage consumer products on marketplaces such as Amazon and Walmart (the two largest third-party ecommerce platforms in the US). $ATER is a tech-enabled CPG company (consumer packaged goods) using their proprietary AI software called AIMEE (AI marketplace ecommerce engine) in 3 different ways:
BUILD: use AIMEE to maximize growth of existing brands across different marketplaces as well as identify category opportunities then leverage their agile supply chain to create and launch new brands
ACQUIRE: use AIMEE to identify acquisition targets, then acquire other brands with strong product portfolio and marketplace track record at accretive multiples
PARTNER: generate revenues by allowing other ecommerce brands to use AIMEE as a SaaS product thus enabling them to better manage their supply chain, marketing channels, ad spend, inventory levels, etc.
There’s also a great opportunity for $ATER to expand their existing brands and acquired brands across multiple marketplaces including international expansion opportunities.
To understand how their products are received by consumers, check out any of their products on Amazon, nothing less than 4.5 stars. Their Air Conditioner (hOmelabs brand) just became the Best Seller beating LG, Emerson and Fridgiaire.
Aterian, a tech enabled Consumer Product Company. That still doesn't say jack, here's a rundown of what the company does:
Aterian sells unbranded consumer products such as ACs, dehumidifiers, refrigerators, dishwashers, etc. on marketplaces such as Amazon, Walmart, etc. Many products are (one of) the best ranked in their category, which makes it extremely difficult to compete with these products.
The company is able to launch new products and get them to the #1 position in their category relatively quickly. They also acquire existing products to grow inorganically (buy and build), more on that later.
The company has grown revenues ~70% YoY since 2017 (!). Revenues were a mere ~$35 mln in 2017 and $186 mln in 2020, with 2021 project revenues around $350 mln.
Investment thesis
The company has significant organic sales growth, which is accelerated by the company's buy-and-build strategy of e-commerce brands and products. Aterian was one of the first companies to apply this strategy in this niche, and now other companies such as Thrasio are doing the same. In case you don't know, buy-and-build is typically used by private equity funds as it offers very attractive returns, because...
Buy-and-build M&A creates value in two ways: multiple arbitrage and higher margins. Aterian acquires smaller companies at low multiples (lower than Aterian's) and there is significant cost cutting opportunity after acquisition (i.e. less personnel and back-end integration).
The company should become profitable this year, which enables the company to use its cash flows and debt for M&A instead of diluting stock offerings.
Conclusion
Solid company with amazing growth potential
AI driven tech offers multiple revenue streams
Undervalued because shorts based on publishing inaccurate and misleading short report
Short interest of 65%
I like tendies, do you?
Gorilla wants to go to the moon
This is not financial advice
Hedge funds have also increased their position last year (based on reported thus far - some 13Fs still to be filed (source). Based on 13Fs reported so far, hedge funds have increased their position in Q1 and Q2 2021
While this could be an attractive opportunity already, company is quite heavily shorted - and some shares on loan will need to be bought back due to Failure-to-Delivers (FTD).
Several pending acquisitions once supply chain costs stabilize according to comments in last 10Q. revenue has increased from 16M to 185M since 2016 through M&A
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