audioBoom are an Aim listed mobile web connected device network which operates a digital on-demand streaming platform in the spoken word. The company has experienced some significant swings in momentum over recent months, yet we believe the current level represents potential opportunity given the current market capitalization of £16million. Having seen a sharp decline proceeding its first 6 months of trading in 2014, the price action tells it’s own story.
As the concept of a content sharing gateway was born the share price soared from a few pence in its embryonic state towards 17 pence in less than 6 months, audioBoom were at the spearhead of a marketing campaign drawing in well-known audio content partners such as Russell Brand along with household names like TalkSport & Sky. In the wake of a pretty active period audioBoom had aligned itself to partnering deals with a plethora of international networks such as Al Jazeera, BBC, Oxfam and many more however once the heat started to come out of the excited shareprice things began to slide.
The primary concern for investors looking to venture into the tech spaced environment is simply how quick and how far can the trend run? will everyday people use such platforms to answer their audio needs? The simple answer to this will come via the company’s ability to grow its viewing figures, improve its platform usability and durability whilst ultimately evidencing it by RNS (official market release).
The key failings to date have come via an over zealous management team perhaps showing a lack of regard for the listing bureaucracy. learning to fly in public and the turbulence of a shaky junior market coupled to a weak institutional appetite for anything in or around the tier 3 sector of the junior markets has weighed heavily not only on the audioBoom but more so on the entire small cap markets. Promise of institutional backing soon dissipates as the corporate musical chairs see’s a fund manager changing of the guard.
We at Valuethemarkets believe that at 3p the shares present good value however this is not without risk as tech based platforms have a critical need to evolve exponentially as revenue starts to flow. We believe the company are better positioned today than ever before (from an operational perspective) thus fully expect the bod to bring the business back into vogue as the second half of 2016 offers up a bigger, leaner and more compelling manifesto to Buy.
Speculative Buy At 3p