$ATER Bankruptcy Digiest$ATER Aterian INC is company that sells household e-commerce products. Company is 100% an e-commerce business that solely relies on 3rd party marketplaces as their backbone for revenue and business acquisition. This idea comes at the right time for us since we were previously bullish on the fact if Aterian hits a short squeeze on October 19th and October 20th. Culpepper research wrote a research report on Aterian and Monti Digital researched Culpeper’s research even deeper with a more accurate insight on the companies nefarious business practices. In this report you will learn why Aterian is headed for bankruptcy and failure for shareholders and institutions.
Aterian has a strong past history of highly illegal, and fraudulent activity. Read this page to learn more
Aterian management is lead by a large group of convicted felons, front-runners for American Greed.
Calculated business models of finance equate to bankruptcy by 2024 overestimation of time.$ATER Aterian INC is company that sells household e-commerce products. This idea comes at the right time for us since we were previously bullish on the fact if Aterian hits a short squeeze on October 19th and October 20th. We gained insight on short squeeze probability on the fact of Volume flow – relative volume with the fact that the high short interest at the time of 28% with low stock float enticed us to make a call position on this investment. We had assumed that if it were to gain enough momentum, it could possibly squeeze to $12 a share. It went to $10.16 and one of our indicators alerted us of abnormal sell positions. We in fact ended up closing the position and writing a naked put for high ROI on this company which ended up hitting the targeted price of $6.90. Change from Bull to Bear After reading the culpepper research report we believe our interest in Aterian no longer made sense for seeing any reversal in the stocks price. We researched and found out the majority of revenue is made from online e-commerce sales. Aterian inc is an online e-commerce business with a few name brand home appliance products, physical fitness products, and some beauty products. We did a quick SEO analysis to find that the Aterian company had a strong stake in Google Adwords for different keywords. We found that the SEO traffic all comes from PPC advertisement and which equates to the enhanced revenue last quarter. On September 16th Aterian stopped running most of their ads. Normally when you make a profit from any PPC campaign, you increasingly scale your PPC (Pay Per Click) campaigns and increase your capital inside the investment. We also noticed the decreased SERP engine traffic (Search Engine Rank Placement) traffic. We researched dozens of industry lead e-commerce brands for hitting Wallstreet estimations on revenue and 100% of the time we have been right hitting a perfect accuracy score simply by using SEMrush Analytics for SEO and SERP trends.
Aterian Merger and Acquisition stage typically pays for each deal at 3-5x its EBITA. Focus is on small digital native brands more likely to have interest from a buyer wanting to sell. Typically Aterian will overpay each investment in hopes it will be a solid ROI for their portfolio. All cash payments of each business is fine but Aterian Inc fails to have the proper backbone of solid, organic growth and solely rely on 3rd party platforms like Amazon, Walmart and Shopify. One of the last strategies to work on when growing an e-commerce business. In our opinion, it should be the other way around where you look for a company with solid Search Engine Rank Placements SERPs, high influencer following and potential growth, strong following on social media. But Aterian simply buys different brands that are not setup for solid organic growth.
Aterian has the generic e-commerce business sense when it comes down to finding a new acquisition. Their AIMEE Artificial Intelligence e-commerce platform scales the industry of best reviews, sales, and company MOAT. Although a good strategy, the businesses invested in are highly inflated with fictional revenue and deals since the businesses are within the Amazon marketplace. FBA storefronts solely rely on business and fail to grow the root domain of their internal business network. The business process is created from employees who look to find the hottest new trends using data analytics. Aterian works with businesses in China to manufacturer and brand their product where it falls into their Launch, Sustain, Milk, and Liquidate phase. Based off Culpeper’s findings, we agree that their business never reaches the final stage. Aterian only launched 37 new products to the marketplace which is inferior to their revenues compared to smaller companies who can successfully launch products, expand, and gain plenty of organic B2B commerce. In the end Aterian seems to be the catalyst of selling cheap chinese goods, slapping their brand on it, and capitalizing for a short period of time while driving in revenue but still losing money.
AIMEE is the AI platform for managing customer listings for e-commerce products. It derives off data and analytics to decide if it is worth optimizing. What get me most is the fact that Aterian completely abandoned the project on Amazon. No one is looking to buy or use the Software. 0 Amazon Reviews on Aterian On top of everything, Mohawkgp.com goes to a 403 page when it should redirect to a 301 redirect proper SEO redirection if AIMEE were a true player in driving revenue for Aterian. Their Microsoft Review page is the same. If Aterian were truly optimistic on AIMEE being a potential revenue generator, they would easily add free trials and tier driven subscription based access which easily drives in real “recurring revenue” for their business. In the end, AIMEE is their true residual income driver in their business, they’re simply to scared to hire the developers thinking it would be a bad investment. Microsoft SaaS revenue adds up to over $9 billion, meaning Aterian is clearly missing out its potential. If AIMEE were such a miraculous cash machine, you’d think plenty of companies would be interested in its e-commerce analytics, Business intelligence and machine learning capabilities for data driven decisions.
We at Monti Digital strongly believe the AIMEE AI software has zero intrinsic value for ATERIAN shareholders as far as it being a SaaS/PaaS business product. It hasn’t created any revenue whatsoever. There’s no concentration for packaged software for this company which is a completely different realm of the sector they’re in as they compete with companies like Helen of Troy, and WDFC WD-40. Packaged Software industry is another sector where Aterian has no game in. They shouldn’t categorize the company in this sector of business whatsoever with the hideous intentions of being unaware of their laziness pessimism they have for this product line of potential revenue. When compared to industry competitors for e-commerce, AIMEE isn’t even mentioned anywhere (List of 9 competitors. The SEO Industry is a $100 billion industry as of October 2021, Jungle scout accounts for $8 billion of that revenue. This is what makes everyone dumbfounded to the “packaged software” claim, where’s the market share for Aterian? There’s none for this niche. Just quit and stop boasting your AIMEE software to the public as a revenue driver. It is proprietary software the company uses called “In house standalone software”.
If it came down to boasting anything about AIMEE, Aterian is great at doing this on their website. The best thing Aterian can do for shareholders is do some mathematics to analyze how much revenue AIMEE has actually generated for a company as opposed to a human doing the same work, or using a competitor. No information on AIMEE being able to create a ROI compared to a human, or outsourcing to team of experts that may use similar technology. Put some R&D research down and show some case studies. This may be convincing evidence that AIMEE would be worth the commitment to investing billions in the technology and even the company Aterian would learn something about AIMEE’s capabilities. Aterian.io, has no Aterian brands or products on the home page. All you see is slogans boasting AIMEE. It is similar to a company having a program as a ‘Trade Secret’, yet Aterian is making it seem like it is the mainline of revenue. We think this is to interest and appease shareholders to buy more, only convincing gullible public interest that fails to due due-diligence.
Lets start to say that Aterians Gross-profit-to-asset ratio is declining each quarter. This is a combination of bad investment decisions as the CROIC is -50.875% past 4 year. This means they’re losing half their money every year. Even the gross profit to asset is pretty bad, declining each quarter. They only generate half the revenue they should be as Aterian simply hit its peak where their gross profit to asset is roughly 50%. This figure should be at 65-100%, where they used to have it. $350 million in total debt and only $359.1 million in assets. There’s clearly something wrong here. There should be very little overhead for this company if they truly new how to grow their business. Annualized ROA is -46.47% while ROE is -135.57% as of June 2021. One of the biggest red flags is having nearly -311.79 million in retained earnings. When you’re supposed to continue to scale your core company, $ATER isn’t able to do this as their 3 year growth of capital expenditures is -10.71 unlike their counterparts
In the end, Aterian is a slave to a 3rd party marketplace called Amazon. Despite Amazon shutting down the majority of their listings and taking down artificially written reviews, Aterian continues these nefarious business tactics to garner revenue from anyone selling cheap Chinese knockoffs to the public while using a rebate, and secret shopper program to obtain reviews. The CEO has to go to levels of trying to pump his own company. “Pump” Schemes are illegal and Co-founder Asher Delug Pumps $ATER on YouTube, Twitter, StockTwits. Aterian has clearly underperformed the industry-wide boom of e-commerce growth in 2020 third party sellers grew 57%, while Amazon grew net sales by 38%, and international net sales by 40%. Aterian boasts like they produce top level profits and revenue when in the end, they’re losing money and generate 1.3% EBITDA margins in 2020.
Monti Digital projects minimal revenues reported in Q4. $ATER will miss their revenue target and the stock will crash all the way down to the $2.50 mark causing lots of chaos with their loyal Aterian lead mind-controlled victims that follow their stock posts and take advice directly from message boards like Twitter, Stocktwits, Reddit. Gullible people don’t know how to properly place a valid estimation and projection on a failing company as you will read inflated and false advertising of Aterians stock. Only thing people have to look forward to is a short squeeze. There will never be good new for this company which is why many investors, and banks are short on Aterian.