ADVFN Post16 Jul 2025 22:35
Copied from ADVFN:
I've been watching Audioboom quite closely lately, and to me the recent price action doesn't feel natural. It gives me the impression that something more coordinated may have been going on behind the scenes.At one point it really felt like a shift happened. I started seeing heavy shorting, and from my perspective it didn't matter how much buying pressure came in, the price just kept falling. I got the strong feeling that the share was being pushed down deliberately, maybe toward a specific level. And then, right as it reached that level, a placing was announced. That timing strikes me as far too convenient.What fuels that feeling even more is the message that followed, claiming the placing was "oversubscribed." On the face of it that sounds positive, but everything I've read suggests the participants were already lined up well in advance. That tells me the deal was probably agreed earlier, quite possibly when the share price was much higher than the placing level. Why commit to a deal back then, only to let the price tumble before executing it, unless that was always part of the plan?Personally, I don't see that as genuine market demand. It feels more like something pre-arranged to secure favourable terms for a small circle. I also wouldn't be surprised if plenty of investors would have happily taken the placing at a far higher level. Frankly, I reckon that just two or three calls from the chairman or CEO could have found parties willing to buy those shares at 350p, maybe even 400p. Speaking for myself as a long-suffering holder, I'd have subscribed at those prices with my eyes closed.It's worth remembering that Audioboom has attracted interest from major tech outfits over the last five years. If the price was forced down, that could easily suit anyone hoping to position themselves on the cheap. And who knows, this might still end in a bidding race. Time will tell, the truth has a habit of surfacing eventually.Meanwhile, the AGM resolutions struck me as head-scratching. The board wants authority to buy back shares, yet in the same breath it issues approximately 7 percent more shares without laying down clear conditions. To me, that looks like a shambles and doesn't inspire confidence that this board is fit for purpose.Just to be clear, I have no real issue with the deal itself. On paper it looks fine. My concern is entirely about how the placing was arranged, the level at which it was set, and how little transparency there seems to have been around it. That deserves a proper explanation. So, Stuart, please take note. I'd like to hear a straight answer on this.
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