Atrinsic, Inc.: some of you may know the story behind the company and some of you may even have played witness to ATRN’s freefall from ~$2 to sub-penny levels. It happened in under 4 months and – yet – we’ve to see an attempt at a bounce here. So why is it that we haven’t seen what we usually do? Well, there’s a back story to more or less every story, but here at pennystockhaven.com we like to save you the boring background and equip you only with the type of information that could help you make a wise trading decision. We see ATRN as a “two-sided” coin. Here’s what our research shows:
On the one side of the coin stockholders are bitching (yes we said ‘bitching’ in our newsletter) that the company (ATRN) has diluted investors, screwed them over and betrayed their confidence. Well, if you’ve been around penny stocks enough, this is a fairy natural reaction from a group of holders who are down 99% on their invested dollars.
The other side of the coin is that the stock is harshly oversold and probably overdue for a bounce. Investors who recently bought it seems to suggest so. As old holders cut their losses and a wave of new traders enter this market we should finally see the bounce this stock is overdue for.
Now the choice is simple. You can kick and scream and flip off the dudes who (may have) screwed you, or try the other side of the coin and play the momentum. Recent trading strongly favors upside movement. Cut your losses and look to make some back on this pending upside.
Below are details that you’ll need to know to feel comfortable with this play:
469 7th Avenue
New York, NY 10018
Atrinsic, Inc. operates as a direct to consumer Internet marketing company. The company sells entertainment and lifestyle subscription products direct to consumers through the Internet. It offers Kazaa, a subscription-based digital music service that enables users to download music files and ringtones; GatorArcade, a casual game subscription service that provides access to digital games, arcade games, strategy games, puzzles, and mobile entertainment; and subscription-based lifestyle services and clubs, which offer consumers an access to shopping and entertainment coupons and other services that could be redeemed online.
Form 8-K (Dec 9th, 2011)
Item 8.01 Other Information
On May 31, 2011, the Company sold to investors (the “Buyers”) Notes in the original aggregate principal amount of $5,813,500, which Notes are convertible into shares of the Company’s common stock. The Notes are convertible at the lower of the conversion price then in effect (which is initially $2.90) or 85% of the arithmetic average of the three lowest closing bid prices of the Company’s common stock during the 20 trading day period prior to the applicable conversion date, which was $0.01303 as of December 27, 2011.
As of the close of business on December 27, 2011, the Buyers have been issued an aggregate of 10,918,477 shares of the Company’s common stock in connection with the conversion of their Notes and the Company at such time had 17,442,687 shares issued and outstanding, which excludes 681,509 shares held in treasury. The Company is authorized to issue up to an aggregate of 100,000,000 shares of common stock, and anticipates that substantially all authorized but unissued shares will be issued to the Buyers to partially pay down their Notes in accordance with their terms.