Well it’s hard to sugar coat it. Yesterday was a disappointing day for holders. For me, brainchip is a difficult company to invest in as I don’t fully (or even remotely) understand how this technology works. But with the help of others on this forum I do have an idea of the concepts of Akida, and the revolutionary direction the neuromorphic industry could lead modern technology. Personally I still consider it a risky investment due to the space we operate in. I believe our biggest risk is competitors. You only have to look at the past ten years to see the rapid developments in technology, with some companies being left in the dust of the big players. That being said, I do back our superior tech, and the direction this company is heading, although do understand the adoption of technology can be a lot slower than expected. I trust management will deliver on their ambitions for the business.
While I appreciate and applaud the dot joining of the thousand eyes, I personally can’t take these speculations as fact when valuing the business. Maybe these speculations are what has partially inflated the share price and maybe for some the expectation of revenue, or maybe I’m just a hopeful pessimist. Although since we were last trading around the 60c - 70c, I believe the company has added significant value.
I see some people get annoyed with the lack of information due to NDAs, but in the highly competitive environment we’re in, these are in our favour in the long run. This investment is a marathon not a sprint. We have to trust management and remember the facts.
While I don’t side with shorters and downrampers, I do see their side of the coin. From a financial perspective the billion dollar plus valuation can seem overshot with the lack of revenue, other tech giants hot on our tales, and the current financial climate. But for the majority here, the value is in our indisputable ip, patents, world class partnerships and end goal of being the de facto standard of edge AI.
These discrepancies in value creates volatility, and volatility creates opportunities for investors.
The coming quarterly’s will really be the make or break for brainchip as I do think they will need to prove their strategy of turning their genius into dollars. because at the end of the day the goal of a business is generally to make money. If brainchip does succeed, it will change our lives more than just financially. That’s the kind of technology we’re investing in.
All in all, I don’t blame those that sell in times like these. People’s investment strategies are different and time will tell who prevails. If only we could invest with hindsight.
That was a great post
@Kiwikangaroo, a very good, on balance summary of where we are.
Myself, I do not take anything as a given here, and yes we were forewarned of lumpy income, but what we just got was in fact a very deep valley. I am not an accountant, but perhaps some creative accountacy (as long as it was conducted within what might be accepted as "proper" practice) might have helped smooth this very deep fall-off in qtrly income.
Perhaps BRN might consider the notion of creative accounting or back-ending the some of the relatively small amount of income they have had so far, so that events as severe as last Friday can possibly be mitigated to some extent. BRN is in ASX200, there are a lot of eyes watching, and our company is now worth 21% less than it was Thurs closing.
So while from the point of view that nothing has changed with regard to the contracts and numerous other partnerships, NDA's, EAP's, which Rob, Sean, Jerome et al have been developing; the market on the other hand, now values BRN very differently.
The headwinds Sean spoke are not likely to diminish, we know there has been progress made, and while I am really appreciative of the excellent research which is shared here, we really don't know what is happening behind the scenes or to what extent any number of partnerships have developed. I believe BRN could be more forthcoming with information, without breaching any contractual matters.
I am not impatient, I have been holding for 7 years, I have seen timelines changed (more than once), I have not ever sold a single share, basically have accumulated what to me is a reasonable holding. This would certainly be life changing if BRN can actually land contracts or real sales with some of the companies BRN has relationships with.
However my bottom line here is that we don't have forever, the global economy is a far worse shambles than most realize, and the headwinds mentioned earlier, most certainly will NOT diminish. I am not at all comfortable with that view of things, and I am also, most certainly not a pessimist, however I do spend a lot of time researching macro economics, and the pictures that I see are un-settling and the economy as we have known it - has a looming horizon (not the end of the world - but not pretty). In my strong opinion time is very much of the essence, and of more than a little concern to me. Hence my disappointment Friday
Regardless of all the above, I have a wonderful life and spend a lot of time laughing, and will always remain grateful for that, and count myself as truly blessed, I also remain a true holder of the BRN faith, even though my view of things is at quite some variance with some of the views posted here; and one of my deep wishes, is for all of us to share a manifest outcome to our mutual investment in what I hope are the magnificent iterations of BRN's Akida.
So take 99% of what is written here as possibilities, because unless it comes through the ASX ann then thats all it is.
