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I just keep looking at this and telling myself no way is this company worth .13/share:
www.atrinsic.net
The 124 shareholders shown on Form 15 are brokers (and institutions), not individuals. Unless you've taken physical delivery of your shares they're held in "street name" (the broker's).
There are well over 500 and perhaps thousands of individual shareholders in ATRN.
In order for the number of shareholders to go over 500, everyone would have to request physical delivery of their stock certificates from their broker. Maybe not a bad idea.
Filing the Form 15 does not protect them from fraud. The SEC rules specifically state this.
So if something smells rotten (and I'm not saying that's the case), rest assured there will be a LOT of legal wranglings for them and the buyer to deal with.
Did you really go by their NY office and it was empty? I missed that post.
At some point traders became investors in ATRN. Some discovered it early on, and others once they read the immense due diligence that was posted here and were convinced the value of the company is much higher than it is today.
Obviously, this is a very unusual situation for most of us who are usually traders to be in, but as I've said on Dr P's site we could make 500 trades in the next few weeks/months and make nowhere near what we could make by just holding.
The only variable (and it's huge) is whether or not the company will intentionally f*ck us. Hence, what it boils down to is we're sitting at the roulette table waiting for the ball to drop on red or black.
The MM's have been in complete control of the stock for weeks now. No further evidence is needed than the drop to .083 and subsequent 100% run intra-day. Many days we've seen nice block buys at the ask and the ask drop immediately thereafter, we've seen 1K-5K sells drop the stock a full cent or more, and conversely we've seen small buys move the stock much higher - complete manipulation just about every day for awhile now.
Not only that, but lots of people here with significant resources to make sure they aren't committing any type of fraud (that includes the MM's also). I'm willing to spend more money (a lot more) if they try to f*ck us. We know the value of this company and it's not .13/share.
Yep, like I said I don't throw around the "F" (fraud) word casually. We already have strong circumstantial evidence of it based upon the trading patterns and MM manipulation. Hopefully the end result will negate the need for any further investigation/action.
I'm not selling either, holding until the Grand Finale (whatever the outcome!).
And if ATRN intentionally f*cked us, I'll hire one of their competitors to make sure every single one of their clients and potential clients knows it.
Viral/Mobile Marketing Warfare!
Bingo! Why would these guys stay on a sinking ship? They could easily have jumped off and let it go under, with their reputations intact. Heck, look at how many times Donald Trump has failed and filed for BK.
But they didn't do that. They voluntarily delisted their stock. They're still operating, still hiring, still going forward (one way or another).
Again, I just can't believe this company is only worth .1078/share and all of these big players are going to screw themselves and us. If we're wrong, we'll make a movie and make our money that way, I have a close friend who owns a movie production company he'll cut us a deal!
All the outstanding shares (87 million), since the remaining authorized shares have been deregistered.
Everything is priced into the stock now. The real selloff (shakeout) was 2 weeks ago when it went to .083, and this past Friday when the MM's knew there would be sellers without an actual buyout/merger announced. Even with supposed "dire" filings the stock didn't come close to .083 and actually closed higher off it's low of the day. Large blocks were being scooped up all the way down.
I don't throw around the "F" word casually (Fraud), having been involved in hundreds if not thousands of different stocks over the years. Only 2 or 3 times have I held a stock of a company involved in fraudulent activity regarding their share price (in collusion with a certain market maker/broker).
If, and I admit this is still a big "if", this company is purchased at well below fair market value (along with other considerations including executive compensation and sweetheart deals for insiders), you will see a flurry of legal action and a certain SEC investigation.
At that point I'd like to see someone explain the controlled drop to .083 the week before last.
I'm still optimistic this isn't the case because I can't believe management is that stupid (we know market makers certainly are), but if they are they can surely expect to be held accountable and at the very least will have to deal with a lot of legal issues no matter the ultimate outcome.
This company is not worth 25 cents/share, at the very minimum it should sell for 1X revenues which is closer to 50 cents/share.
Just keep reminding yourself of this about companies "going dark":
The company will remain subject to anti-fraud provisions of state and federal securities laws.
Is the risk worth it to these guys who are already worth millions? Of course not.
smoke'em, did you have to file anything with the SEC with such a large position, or is that not applicable in this case?
No they don't have to tell us d*ck, but there is still the fraud provision that hangs over their heads, and if there's any hint of fraud being committed rest assured they'll be answering questions in depositions.
There is more investor information on their website now post-deregistration than there was the past few months. Hmmmm....strange for a company supposedly "going dark".
The SEC filings are listed on their website again, very professionally I might add. The Board members and their bios are listed, Corporate Governance, etc.
I need to play Devil's Advocate for a minute here because there's something that I don't understand and I hope one of y'all can clarify it for me.
If ATRN had a buyer/deal finalized late last year, and if they're worth anywhere from $50-$150 million, and if they only owed BD about $6 million, then why wouldn't the buyer just pay off the BD debt instead of letting ATRN issue them all those shares?
Why would the company list their SEC filings on their website if they were "going dark" for good? That section of their website was empty for a long time. Again, another piece of the puzzle that makes no sense to me if this company didn't give a sh*t and was going under.
Also, they're hiring new employees, if they're broke and going out of business, why?
The 124 shareholders are the institutions/brokers holding in street name for thousands of individual shareholders.
I think the company was truly surprised the stock went so low after voluntarily delisting (and perhaps after BD sold shares into the market to pay off debt). This gave savvy traders (and investors) the opportunity of a lifetime - to scoop up shares of a real company trading on the pinks at a below-bargain-basement price. And many of those buyers were buying big (me included) and refusing to sell because they knew the company was worth significantly more.
I can understand the company not wanting such a large portion of their O/S in the hands of "flippers", so how could they shake them loose and get them in more "secure" hands (either their own or a buyer's)?
1. News blackout (as someone already said, ATRN went dark after their last 8K)
2. MM manipulation (that drop to .083 last week was completely orchestrated to shake out weak hands)
3. Deregistration (you saw a lot of blocks today being sold and sucked right up)
I just can't accept the fact that this company is going under and there is no value here. $40+ million in annualized revenues, paying down debt, strong Board of Directors including the former CEO who stayed on the board, and close relationships with major clients, investment firms and advisors.
If they fooled me with all of this, then I can still sleep at night knowing that I made a rational decision to hold based on everything I know (and the great DD posted here).
I need at least $1.00/share to pay for the therapy I'm going to need after this is over!
Exactly, if they were scamming mf'ers they'd simply dilute to raise more money. It makes no sense to do what they did today and screw themselves and everyone else.
The company doesn't want millions of shares in the hands of pennyflippers.
The orchestrated takedown to .083 last week was designed to shake out as many shares as possible from weak hands. The same thing today. With a reporting deadline coming up, these events were not coincidental.
It does not appear the company is going out of business. Therefore, the most likely scenario, based upon all the evidence and due diligence performed, indicates some type of merger/buyout. The only question is the price.
If the company is doing approximately $40-$50 million in annual revenue, based upon their current situation and relationships I think 1X revenues could be a fair price which would put us at about 50 cents/share. Assuming the company/buyer has been able to accumulate much of the float that was "locked" by pennyflippers, they're getting the company at a significant discount.
Of course, this is all just speculation and wishful thinking, but I simply do not see anything that leads me to believe the company is going under or bankrupt. Why do all this (pay down debt, trade shows, conferences, tweets, etc.) if that's the case? Makes no sense and the people involved in ATRN seem pretty intelligent.
Next week should see some resolution to this mystery.
I don't know what's going to happen going forward (although I'm holding until the finale), but I have to say I've never seen better due diligence on a company than what many of you have done here. The NSA and/or CIA should hire some of you. Well done mates no matter what the outcome.
Well, for those who have never witnessed it, you saw this week how MM's manipulate stocks. They would take a stock down for no reason just to execute a stop/loss on their grandmother.
Now we're seeing some decent size blocks on the bid. I hope CSTI has been shorting naked they sure are trying to hold it back.
As long as the company gives no reason to buy the stock, the MM's will continue to shake out weak hands. Momentum players are already gone and those firmly entrenched with large positions are holding.
So it's worth .01-.05 yet you held it until .30 to sell it? Interesting.
As I said earlier, MM's are in control right now. Once buy pressure increases again the chart will be in control.
Who knows. What we do know is there are very intricate relationships amongst Atrinsic, BD, Kenshoo, and several other companies with the same "key" individuals somehow involved. The DD that buckhunter et al have done is simply fantastic, tying together a lot of loose ends and fitting together a lot of pieces of this complex puzzle. What we're waiting for are the final, big pieces that will ultimately reveal the picture this puzzle creates.
The debt is owed to BD, ATRN has given shares to BD in lieu of cash, those shares have been sold into the float and I believe continue to be. The company did not increase the Authorized Shares however which is a good thing.
Also, the MM's are not going to whack the bid to dump shares, this has been a methodical distribution, you can see the blocks being offered and scooped up at the ask. If it was panic selling by the big holders you'd see big blocks hitting the bid.
MM's are in total control right now, but once we get a catalyst that causes significant buy pressure that will change.
Right, it makes no sense, unless of course BD is selling shares to pay debt which I believe is what we're seeing.
Yes, and every single time there's a decent size offer at the ask one of them comes in just under that offering 5K shares.
No doubt in my mind that BD is selling shares to pay down the debt. We've seen this exact pattern play out already and it's the ONLY thing that makes sense.
Occam's Razor.
That's a problem for a lot of people, they've used up all their funds averaging down. MM's know this and are hoping for panic selling to pick up shares as cheaply as possible.
MM's are gonna take out all the stop losses that they can before this goes higher
Yep, it's a very simple concept: Sell Pressure > Buy Pressure right now. There needs to be a catalyst to change that (8K and/or PR).
Well I've been trading stocks for 20 years so I like to think I have a little bit of knowledge. Do you not understand the concept of buy and sell pressure?