By Tom Winnifrith, The Sheriff of AIM | Thursday 20 February 2020
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The Sound Energy (SOU) shareholder action group now has more than 300 members and speaks for 9.5% of the, in my view, almost worthless, equity. At 10% it can call an EGM and seek to oust the board. And if you own any stock in the company I urge you to contact me at email@example.com NOW and here is why….
I do not believe that ousting the board will make any difference to the fate of Sound. However it will end the gravy train for those running the company including the man responsible for this mess James Parsons who is still a consultant on terms undisclosed.
The company and its hapless Nomad Cenkos Securities of Quindell infamy, Lagos Securities to its mates, has refused to have any dialogue with the shareholder action group as they view private investors with an undisguised contempt.
Ending the gravy train would be a good thing. I sense most shareholders accept that the equity is almost certainly worthless but why not preserve what cash remains so something can be salvaged? Moreover, a new board would have the opportunity to scrutinise all past and present contractual arrangements and other corporate actions to discover if, at any point, there was any wrong doing.
Given the way that James “Dracula” Parsons is now moving onto fresh victims on the AIM casino it is wholly desirable that his past activities, including selling vast numbers of shares while insisting to mug punters that the stock was incredibly cheap, are thoroughly scrutinised and the current board and Nomad appear unwilling to consider this.
So, while ousting the board will not stop Sound shareholders who have already lost 95% of their money from losing most of not all of the rest, it is for the good of AIM that the board must by sacked as soon as possible.
I hope readers of this website who were warned so many times about Sound have no shares in this POS but if you thought you knew better than myself or Gary Newman and do own the shares drop me a line at firstname.lastname@example.org ASAP.
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