Audioboom Share Discussion Threads

[mdchand] 22/7/2021 13:09

Wooty. So when AAA released its last trading update, its market capitalisation was £551m - which (according to the accounts) was supported by assets of £9.2m and cash of £7.5m. The difference is what we call - er - hope, or the implied option value on the implied value of the AAQUA shares / sentience shares.

This is a pyramid valuation supported by a pyramid valuation.

Perhaps you can educate me and everyone else on this board justifying WHY you think the AAA shares are worth 80p, rather than simply because they hope to raise 115m at 80p. There is one factor that might support your argument, but I'm waiting to see if you truly understand the financials supporting AAA.

[wooty01] 22/7/2021 11:42

Should be GBP12 not 13

[wooty01] 22/7/2021 11:41

Don't get personal as it reduces the currency of any comments you may have.

[sspurt] 22/7/2021 11:25

Wooty - the bid is NOT worth £12. It is only worth that if you believe the 80p AAA valuation and to date there is precious little to support that assertion.

If you don't agree with redwing that Allenby Capital "research" is paid for by the company the subject of that research then frankly we have nothing else to say. I shall leave you to enjoy la la land.

[wooty01] 22/7/2021 11:02

Thanks Redwing. 1. Don't agree2. Don't agree3. agreed4. Emphatically Don't agree 5. Don't agreeAgreed will be a rollercoaster Cheers.

[wooty01] 22/7/2021 09:55

But I repeat my point that directors must display how they arrive at a value of more than the current bid of GBP12.

[wooty01] 22/7/2021 09:54

80p may not be market tested, but shareholders have put in money at this price. I don't blame AAA going private. What company wants to have its market cap decimated by what normally happens on AIM after a placing. We have to understand that AAA is acting in the way US companies operate. Stay away from the market until really ready to float as an established business. Investors in private companies know how to attribute value. Look at all the acquisitions of podcasting companies. They've all be US and all private. If this isn't acceptable to the normal AIM shareholder that's understandable. They should sell before a deal is finally struck.

[redwing1] 22/7/2021 09:48

Wooty01 - let me help you with one or two things that you don't understand;

1. Broker research from 'free to investor' companies such as Allenby Capital is paid for (and essentially written by) their clients. A £12 valuation by Allenby won't prove that the company is worth this price - that will be determined by potential buyers.

2. Audioboom failed to find a buyer when the shares were sub £2 each over a year ago due to lack of owned content. This is now being addressed and sales are growing rapidly. Is Audioboom now worth £10+ when buyers wouldn't pay c£4 back then? Maybe, but it is a punchy valuation.

3. The £25 clause in the AAA offer is bad news. No-one else is coming in at £25 so Candy etc have left no scope to accept a rival bid at, say, £12 from another buyer. Such a bid could still succeed of course but it makes it harder if 26% of the shares are locked up.

4. Market makers might move prices in the very short term but they don't affect long-term prices. An AIM listing hasn't harmed Audioboom. Failure to match optimistic forecasts brought the shares crashing down from elevated levels and good underlying trading has now sent them higher again.

5. It is good news that there is interest from AAA but taking their offer of unquoted paper makes no sense at all if you believe in the Audioboom story and its current management.

Could be a rollercoaster ride from here but lets hope it is ultimately a rewarding one for shareholders!

[wooty01] 22/7/2021 09:47

Sorry meant to say a 20% premium of GBP15.

[sspurt] 22/7/2021 09:47

There seems to be some fixation with the figures £12 and £25 on here which is confusing an already difficult picture.

£12 is the supposed value of the AAA bid but it really is not a helpful value as it is almost entirely dependent on an 80p value for AAA shares. AAA shares were suspended at around 53p and the only justification for the AAA assertion that they should be valued at 80p is that the company has done a small fund raise recently at this level and are planning a much larger one at the 80p level which is conditional on a number of factors. As far as I am aware 80p is not a value that has been market tested and, much as the directors of AAA would like you to believe otherwise, it needs to be treated with considerable caution.

£25 is simply the value above which Aacqua and Candy are no longer tied to accepting the AAA offer. There is no implication that that is the value these two large shareholders place on BOOM and it has no further relevance to consideration of this potential offer in my view.

Hope this helps.

[wooty01] 22/7/2021 09:46

I agree with your totally buggy. The point that still baffles me is the GBP25 price per share that allows Candy and AAQUA to be released from irrevocable agreement. I could understand a 20% premium of say GBP18. But 100% I don't understand. Together at 26.4% they have a blocking vote for any bid less than GBP25. Why tie your hands on a GBP20 bid. It's ridiculous and I'm annoyed with myself at not being able to work out the reasons and merits.

[buggy] 22/7/2021 09:00

I see your point wooty01,

the only value I see with this offer is that it has set a bottom on what can be considered. Anyone coming to make an offer will have to make one above £12.

I dare say however that the offer has to be in pure cash or on a listed company so that I know exactly what it is worth as well as if I decide to accept it does not negatively affect my ISA.

I would have considered £15 cash. I don't expect BOOM to still be around in 12 months but I am sure it will be bought by one of the big players who has the funds to make such acquisition.

[wooty01] 22/7/2021 08:56

I'm glad directors have rejected AAA bid. They say it undervalues Boom. Good. So what value do they and Allenby place on Boom. Their current value is 1020p! I'd prefer 1200p at least it's a bird in the hand and not down to hoping for the future.

[hazl] 22/7/2021 08:56

Melegram party food sounds good what about the drink?

[hazl] 22/7/2021 08:52

I think that it's too lovely to sit indoors so I'm off to take the dog out!

[wooty01] 22/7/2021 08:52

I didn't follow one word of that buggy. I'm not advocating the AAA deal. I'm saying it has merits and shouldn't be rejected out of hand. An offer of GBP12 has been made for Boom. Cash GBP2, AAA shares of GBP10 based upon new share placement of 80p. Management have to tell us why this value is too low. Give shareholders a new independent Note from Allenby. It's their fiduciary responsibility and main duty to maximise shareholder value. The current price is GBP9.50 and brokers note is GBP10.20. Neither anywhere near the GBP12.

[ebomber] 22/7/2021 08:44

buggy

FACT IS BOOM have rejected the AAA offer confirmed in the RNS dated today.

Modest holder looking forward to incremental daily move north now this distraction removed. Should be an easy move to £12.00 in thin volume over the coming few trading days.

[buggy] 22/7/2021 08:31

@Wooty01

You can't ask Audioboom's management to give you reason why they think that £12 is undervalued. That reason has already been given by AAA.

AAA have stated that the minimum that they will accept is no less that £25 for their shares, so you have to trust that they know the fair value of the shares.

You can't be inconsistent by trusting AAA when they tell you that their shares will be worth £x Billion when eventually relisted, but on the other hand thinking that they are off their heads when they tell you that the value of their share in BOOM is worth a minimum of £25.

[melegramfortongo] 22/7/2021 08:28

Improved offer on the cards .
Never show full hand …

Won’t be long

[ebomber] 22/7/2021 08:24

Good timely and robust rejection of the AAA offer.

Allows BOOM to resume rerate, without distraction, towards true enterprise value.

[codeine1] 22/7/2021 08:13

As expected, offer rejected.. No doubt the door has been opened to further proposals. No reason to take the initial offer. Interesting either way..

[buggy] 22/7/2021 08:12

@csmssk12hu,

I may still have more legs to run, but there are condition that needs to be met for me to consider voting YES:

I need to have a clear idea what I am being offered for my shares to allow me to make a decision.

(a)Purely cash offer.
(b) If I am supposed to also take AAA shares, then AAA needs first to be relisted on whichever exchange that they want. That way I will have a clear idea of what AAA shares I am getting is worth rather than someone telling me that it may be worth XXX which is purely subjective.

[csmwssk12hu] 22/7/2021 08:00

Cheeky bas£ards this has an awful lot more to run yet imho dyor