I could start an antiques business by buying $35 million worth in antiques and reselling them for $32 million. That's not good business, but it makes for $32 million in revenue. It certainly doesn't make my business worth a $5 per share...or even $1.
That's what this company has always done and, honestly, I'm ashamed that I trusted this company enough to think they could cut spending. But even after dumping Kazaa, they still were required to spend a ton of money on the content they were providing.
The problem I had was that they failed in their fiduciary duty to share holders and they misrepresented the company publicly with Spyder. They also, apparently, collateralized a substantial amount of their assets and IP to a company (or companies) that had its own stakeholders in decision making positions at Atrinsic. Furthermore, they apparently took on an unprecedented amount of debt during a period when they were dark.
If companies can get away with such behavior, why would anybody ever choose to invest? We are idiots for investing in bad companies, but when the company conceals how bad it really is, then that's just plain wrong.
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