Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

Analysis on GARP with strong economic moats

GARP with strong economic moats

Equity Bottom-Up

<ul>
<li>Although Q3 2021 results came in above consensus on revenues and operating profit, we believe the overall picture on Aterian has not changed materially, and the outlook remains gloomy.</li>
<li>Q3 net revenues reached $68.1 mln (+16% YoY), of which $35.4 mln were supported by organic business and $30.7 mln from recent M&amp;A activity.</li>
<li>We believe a share capital injection is in the cards. We expect ATER will be shortly forced to issue new shares at a discount to finance its operations.</li>
</ul>


Although Q3 2021 results came in above consensus on revenues and operating profit, we believe the overall picture on Aterian has not changed materially, and the outlook remains gloomy.
Q3 net revenues reached $68.1 mln (+16% YoY), of which $35.4 mln were supported by organic business and $30.7 mln from recent M&amp;A activity.
We believe a share capital injection is in the cards. We expect ATER will be shortly forced to issue new shares at a discount to finance its operations.


Aterian Q3 Results: Outlook Remains Gloomy