LEADCOM, a real growth company.

This is an completely inaccurate comment:
"Leadcom share price has been halved to ₤0.45 from its peak seven months ago. The slump was apparently caused by a rather disappointing outlook for 2007 that the company published two weeks ago."

In the first place Leadcoms SP went down 10%, from 50p to 45p, after it published its trading update on Dec 1st.

Secondly the trading update was positive - how was it 'disappointing' !

Thirdly the SP halved from its 94p high on May 11th to its previous low of 47p on July 18th as a result of 3 factors
a) The May correction in the overall market
b) Their quick 63p placement at the end of May
c) The Lebanese conflict

The SP had recovered to circa 60p by mid October and then drifted back to 50p by the end of November, before the trading update was issued on Dec 1st. Since then a volume of 69m shares have been traded over the past 2 weeks.

Raising funds of $30m via a bond issue must mean that they need additional finance to support anticipated substantial increases in business (India and maybe a significant contract in the US during 2007). This is not a blue sky company seeking money to stay afloat. Raising funds via a bond issue does not dilute shareholders so this should not negatively impact the SP. Be interested to know why the bonds are just being sold to Israeli institutions and not also in the UK/USA too. However the company has not been very forthcoming on disseminating information recently (which is rather disappointing) so no explanation may be provided.

Can't really see why this issue would have spooked institutions and prompted them to sell unless the bonds are convertible, which would therefore be dilutive further down the track. However my interpretation of the description 'straight' bonds is that they are not convertible. I really think that the company should issue a statement to clarify this and the recent share trading volumes.