Three 8Ks in as many weeks. Why?
We are all now bearing witness to the MASTERFUL use of material information on the part of Messrs. Goldfarb & Fong. The first 8K (i.e., the impairment charge to goodwill) was nothing more than a minor accounting chore; perhaps better saved for explanation in a subsequent 10K). The material information contained in the second 8K (i.e., the sale of a building), and the 3rd 8K (i.e., use of the moneys derived from that sale) could have – for sake of economy – been bundled into one 8K. But no … Goldfarb & Fong have skillfully chosen to repeatedly call attention to their labors on three distinct occasions, as opposed to only one … each separate time clearly reminding the market that they are laboring on Atrinisic’s problems. Buy why?
It’s obvious, isn’t it? They are – and shamelessly intend to – ORCHESTRATE and manipulate the market’s growing interest in Atrinsic. This is a master stroke when one realizes that their campaign (and make no mistake about this; it is definitely an ORCHESTRATED campaign) is not being done with the usual ‘stinky-pink-fluffery’ of pie-in-the-sky PRs. No! Messrs. Goldfarb & Fong have thus far cranked out indisputable CERTAINTY … an element that the market craves. Moreover – and this shows the brilliance of their SHOWMANSHIP – the most recent 8K that confirmed an ACCELERATION of repayment of the notes – carried the IMPLICIT likelihood of (1) no resort to Chapter 11; (2) no further near-term dilution; and (3) that the company has adopted a course of action designed to make retirement of all debt its single overriding concern. This concerted thrust of the company’s actions further and immediately implies the near-term likelihood that Atrinsic is racing to retire its outstanding debt so that PROJECTED earnings will show a clear net profit and the absolute turnaround in the company’s fortunes.
If this course of action is in fact the one that Messrs. Goldfarb & Fong are presently pursuing, then they have, at most, 60+ remaining days to ‘show-time’ … i.e., to bring the full scope of their plan into fruition (i.e., year 2010’s 4th quarter earnings were announced on March 30, 2011). Thus, we should expect to receive a series well-timed and wholly ELECTRIFYING 8Ks regarding the repayment of the February and March note installments, as well as the successful sale of any company assets attributable to such efforts … all leading up to the announcement of earning.
Some time ago on this board I stated that this company doesn’t do PRs. I said it in a derogatory manner; having longed for them when I day-traded this stock back in the summer. I now apologize for that flippant remark (indeed, it was the very excellent poster, low_man who suggested to me that Atrinsic would not engage in mere ‘hype’ … he was absolutely right in that regard). Goldfarb & Fong know that “they don’t need no stinking PRs”. Their carefully concerted actions over the course of the next 60+ days will give rise to 4 or 5 additional 8Ks that they will surgically drop into the market like bombshells destroying all doubt that Atrinsic’s moving upward to better days.
AIMO … but I’m long for that reason.
AI
