ATRN Update- True Public Float = 900k Shares

March 5, 2011 at 10:40 pm Leave a comment

A quick note to Groove VC members regarding the article that posted on Saturday afternoon – “Apple’s New Subscription Rules May Clear a Path for a Kazaa Comeback”. In the article a figure for ATRN’s public float is given that pulls the Insider and 5% owner data from the proxy filed at the end of 2010, then takes the mutual fund data from Yahoo Finance and subtracts those from the 6.2 million shares outstanding to calculate a public float of 1.4 million shares. To make sure that the members of our investment community appreciate the economics of the supply/demand scenario we may see developing here as more investors become aware of the situation (ATRN’s gross undervaluation that does not reflect Kazaa ownership), we sent a note to several members of our investment community to see how many shares they held. Our current count is at just under 500,000 shares held by Groove Community members, which would mean that the public float of 1.4 million shares does not accurately reflect the number of shares that will be available to be bought and sold on a short term trading basis – that figure is probably closer to 900,000. Given the attention that Kazaa and the other players in this space are likely to receive leading up to the Pandora IPO, Spotify’s entrance to the space, Apples efforts to stymie those two and Google’s increasingly less clandestine moves to make some noise in the space; we should see an increasing interest from investors in the streaming music space and Groove VC members need to understand that the attention grabbing low float mentioned in the article actually overstates the true “free public floating shares” by about 50%. Again, the true public float is much closer to 900,000 shares, which is one of the lowest I have ever seen for a Nasdaq listed stock.

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March Update – Time to Buy More ATRN ATRN Update – True Public Float 700k – 750k

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