IMO, I don't think ATRN is a pump and dump. I've been doing extensive DD and this isn't a typical penny scam. The past 10-Qs and 10-Ks should be an indication that the company is doing everything in its power to reorganize for eventual relisting on the NASDAQ. Let me outline some things I've read:
ATRN has convertible notes that are coming due. This liability is being taken off the books by selling dead-weight assets and converting their A/S in totality. Despite the heavy dilution last week, the stock price still rose from .008 to .019. I can only count on one hand the number of penny stocks that have this happen. Clearly, lots of retail and institutional buyers are in on this.
As a result, ATRN has raised (IMO) approx. $1.75M from the stock dilution. What's better, 100M O/S in the penny world is very small! I think you will see a PR/8k come out in the coming week or two that details the money tey generated from this offering and that the money is going to pay off debts that are currently owned.
Additionally, the company has sold approx. $1.25M in dead-weight assets (briefly mentioned above) - this will also go towards debt payment.
Essentially, ATRN is raising capital to pay off liabilities, while at the same time removing net loss assets to reorganize their company. Now we come to my theory of how they will pay off the rest of their debt (since roughly $3 million won't completely cover it). I think they plan to sell kazaa to pay off debts and use the remaining cash to re-tool their profitable ventures. Kazaa currently operates at a net loss but is a huge asset due to their subscriber base. Kazaa produces massive revs and would become profitable under a larger brand that can turn the platform into a net gain.
And even if you don't believe in anything I've just said, look at the revs being generated regardless. Their transactional service is on par with last year's revenues and they are limiting their operating expenses. When the liability is cleared off the books, they will be in a great place to reorganize to become a profitable venture again. What penny stock do you know that produced $40 million in total revenues last year. I understand your concern of the net loss, but the company looks to be taking quick action to work on these issues and I think this is a great short-term, mid-term and long-term play. If they continue in the right direction in 2012, you could see re-listing to the NASDAQ by the end of the year. But this is only if they can shed all the dead-weight, increase revenues in their transactional service and keep liabilities to a minimum. GTLU
