Being a known investor I get all sorts of offers of various kinds coming across my desk. Some of them are funny, almost all are duds, but some are far worse and make me take note - but not in a good way.
One such company is music site Baboom. I was approached by some outfit touting this thing as the next best thing, a Spotify beater. Oooh, look out. Kewl. Get the idea?
Well, being inquisitive I checked out the website - it didn't function at all well, the first page took minutes to load, and since then each page loads in a slow 30 seconds. I am using an HP15 64 bit Windows 10 computer with Opera 32 browser. Download speed is 7.88 Mbps. Not overly fast but good enough to check anything including YouTube, the NBA and ESPN.
So I dig deeper. Turns out this nonsense was founded by Kim Dotcom, the convicted criminal who is awaiting extradition from New Zealand to the USA on money laundering and racketeering charges. Hmm.
Okay, so let's not be too judgemental (laugh track), I check out the speeds of competitors and they load in seconds. Oh dear. I Google common search terms for music, Baboom doesn't show up. Deary me.
Now what was touted was a compliance listing of Baboom on the Australian Securities Exchange (ASX). Securities prior to that were offered at a 20% discount. Great deal? Well no, my estimate is the shares are worth very little if anything at all. A company founded by a crook, charged with offences directly related to the business at hand, must mean the site cannot get major record label business and so cannot be viable. It's as simple as that.
So be warned, if you get Baboom quoted to you by a broker or anyone else, laugh and walk away or hang up quickly.
(Note: These opinions are information only and do not constitute investment advice. If you need investment advice on these stocks or anything else for that matter, talk to your recognised and professional investment adviser. Better still, do your own research and act on it confident in your own ability.)
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