BRN Discussion Ongoing

[Diogenese]

I asked the question the other day as I’m not sure how it all works?
It can’t be all retail selling back to the shorters, so where does the selling volume come from that the shorters buy back from?

A mate of mine, whom I had convinced to buy at 20 cents, sold at 67 cents - I convinced him to buy back.

 

[Diogenese]

My sentiments Exactly ... I am not diving in and buying at the moment ... but will be! one day, three days, one week???? who knows... just observing!

Whatever the price, I always think it's the bottom ...

 

[VictorG]

It's possible, yes.

My own personal opinion however is that the 18.6% of Fridays trade (shorts) + a somewhat underwhelming 4C + the heavily ("where's da revenue br0?") biased and persistent narrative being pushed by so called financial services journalism for the past couple of years + a whole bunch of people ("investors/punters") who are either overweight on BRN and/or expecting far more than is potentially possible in a timespan they consider to be reasonable... contributed somewhat to a domino-like effect of trading in a downward direction, likely creating further panic/stress/anxiety among holders who then in turn sold down (contributing to the effect). It was pretty obvious that the shorts efforts were very measured and they did all that they could to maximise its effect, including crawling out of their filthy nooks and dusting off old and/or creating new 'emerged' accounts here to push their panic narrative.

Just my thoughts on what might have done most of the damage these past few days. Feel free to ignore.

On a positive note however, there are four things worth noting:

1. Now/soon could represent a super buying opportunity (obviously your call... not financial advice)
2. The shorts need to buy back at some point... i look forward to them doing that.
3. Nothing has changed fundamentally about BRN - the value prop and opportunity remains the same, and with every passing day we get closer and closer to seeing what most might consider "substantial" growth. Perhaps it will be THEN that the WANCA's, et. al. will change their tune. Who knows... I also don't care
4. Continue to report obviously misleading / thinly veiled downramping posts + user accounts. Zeebot has created a platform that will respond appropriately.

You are 100% correct and I now think we can add Argo's demise as an influence also.

BRN's share price had a big fall on the 24th Oct, prior to the release of the 4c and just as Argo's demise was announced.

 

[DingoBorat]

@Boab Were you able to top up? I’m with Cbus and my allocation dropped below 20% for an asx200 company too so I should be right to top up. Even though BRN wasn’t removed in the September rebalance it is currently ranked about 270 so it’s not recognised so I cannot buy any more. Interested to see if Australian super does the same or if it’s a Cbus issue.
(Note Cbus allows 10% of super balance in an asx300 company or 20% in an asx200 company)

I'd be calling them about that..

Regardless of our current position, we are still in the ASX200.

 

[Diogenese]

You are 100% correct and I now think we can add Argo's demise as an influence also.

BRN's share price had a big fall on the 24th Oct, prior to the release of the 4c and just as Argo's demise was announced.

But, as you and I and the gatepost know, Argo was about a flanking manoeuvre to get to AD level 5 without passing GO*.

Meanwhile Brainchip's customers (Mercedes) are happy to get to level 3 and progress one step at a time.

*I love a metaphor salad.

 

[Rodney]

Manipulators don’t move the shareprice 25% up or down in 2 days. Many of the people in the forum and other retail shareholders whether they are honest or not have most likely sold out and the sentiment in this forum and the other forums says so plus the people that have explicitly stated this. There’s only so much you can continue saying about manipulators and shorters at one point you need to understand that’s it’s the market. Hence, why you should ensure that every decision you make to buy, sell or hold is based on 100% your own belief or a paid financial advisors. The inflation rate is going to increase, the market may continue pooping itself, no one can tell the future but unless BRN pull something significantly positive out then I don’t see the price stabilising and the drop is going to continue to happen. Do what you like with this information it is only a shitty opinion from a random on this forum.

Not sure I agree. All the investors I know including myself have bought more at these prices and as soon as I can free up more cash I will buy another parcel. If shorters are not manipulating price I will eat my hat. Over 20% of shares traded on Friday where from shorters dumping onto the market. I would think when you add in the same shares churning you would be up to 50% of shares traded. I don’t think many people have sold out at all and would be interesting to see an updated broker report as it might highlight the churn I think has taken place. It’s a game of deception if you ask me.

 

[VictorG]

But, as you and I and the gatepost know, Argo was about a flanking manoeuvre to get to AD level 5 without passing GO*.

Meanwhile Brainchip's customers (Mercedes) are happy to get to level 3 and progress one step at a time.

*I love a metaphor salad.

Yeah I know there is zero correlation between the two, unfortunately Wanca's continue breeding and I'm getting older.
Below is one Wanca that in all likelihood hasn't heard of Mercedes.

• PUBLISHED ON OCTOBER 31, 2022
• IN OPINIONS

Argo AI Shuts Down: Is ‘Self-Driving Cars’ a Realistic Dream?​

Argo AI ceases operations. Questions are now being asked on what’s next for autonomous vehicle technology.

• BY AYUSH JAIN

 

[Fact Finder]

It's possible.
Have you read the Gamestop story.

GameStop short squeeze - Wikipedia

en.wikipedia.org

Now, I'm not sure how its possible to short more than 100% because there are many different explanations on the topic, but I think it has something to do with the situation where a share can be borrowed more than once and subsequently sold short twice !

Here is something to consider though:

"A short position in stocks is created by borrowing stock and then selling it on the market. Therefore, every short position actually results in creating two long positions. The first is the long position from whom the short borrows. The second is the long position created by the person who buys the stock from the short seller. So at any given time, short positions are always outnumbered by 2 to 1."

https://s3.amazonaws.com/armstrongeconomics-wp/2012/05/manual-models.pdf

In my own humble opinion, I consider the art of short selling as a dangerous occupation for those that partake, because subsequent squeezes can be utterly devastating for those holding a bag of shorts. A very clear example of what can happen was the left field Mercedes reveal. Have a look at the chart from Jan 4 to Jan 19, I think 71 cents to $2.34 in two weeks and the volumes were unbelievable, much higher than Fridays bloodbath. There will be another short squeeze at some point in the future as sure as the sun will rise tomorrow morning, and when it comes it'll make the January move look like a Teddy Bear's Picnic.

A single short position can be multiplied in theory to infinity.

I part explained this yesterday:

1. Short A approaches Institution B and borrows 12 million shares.

2. Short A approaches Institution C and sells the borrowed 12 million shares off market as a Cross Trade to Institution C.

3. Short D approaches Institution C and borrows those same 12 million shares.

4. Short D approaches Institution E and sells those 12 million shares off market in a cross trade to Institution E.

5. Short F approaches Institution E. and borrows those 12 million shares.

So at transaction 5. the original 12 million shares have opened 36 million short positions that need to be bought back.

This type of activity is what can create the necessity to manipulate inexperienced retail with fear into panicked selling to create sufficient liquidity to buy back positions without creating a squeeze.

This is where they join together with a common purpose to infiltrate social media, the press and the financial advice industry to scalp the unsuspecting retail holder.

I have said before in my opinion retail do not have what is necessary to play in the shark pool so the only way to survive is stay out of the water, do your own research, have a plan and let time in the market work it’s magic.

My opinion only DYOR
FF

AKIDA BALLISTA

 

[Sam]

I have been buying and not sold any.
If the price continues to fall I will buy more.
I believe in the Company and the product.
What other people do is their business.
GLTAH

Ditto hopalong, I like many people on this forum, are long term brainchip holders….. We have only just begun the brn journey, only just commercialised. If you are a long term holder you have no reason to panic, all this doom and gloom is really starting to wear thin. Sorry that the share price fell, buck up or move on, with all due respect think about the poor chaps that were caught up with the craziness in January. It’s funny, I bought back when brn was 4c now my average is slightly higher then the price closed today because I kept buying, buy on the ups and buy on the downs, buy when ever I have the cash available. I believe we are going to be massive peeps just need to be patient. Hope this helps. Like FF said, make a plan and stick to it, well he said something along those lines

 

[Straw]

A single short position can be multiplied in theory to infinity.

I part explained this yesterday:

1. Short A approaches Institution B and borrows 12 million shares.

2. Short A approaches Institution C and sells the borrowed 12 million shares off market as a Cross Trade to Institution C.

3. Short D approaches Institution C and borrows those same 12 million shares.

4. Short D approaches Institution E and sells those 12 million shares off market in a cross trade to Institution E.

5. Short F approaches Institution E. and borrows those 12 million shares.

So at transaction 5. the original 12 million shares have opened 36 million short positions that need to be bought back.

This type of activity is what can create the necessity to manipulate inexperienced retail with fear into panicked selling to create sufficient liquidity to buy back positions without creating a squeeze.

This is where they join together with a common purpose to infiltrate social media, the press and the financial advice industry to scalp the unsuspecting retail holder.

I have said before in my opinion retail do not have what is necessary to play in the shark pool so the only way to survive is stay out of the water, do your own research, have a plan and let time in the market work it’s magic.

My opinion only DYOR
FF

AKIDA BALLISTA

I'll be standing on the side giggling inappropriately as they eat themselves alive.

I know that's not a nice sentiment but they aren't nice people and cause an enormous amount of harm to those not familiar with the hazards they create. It's predatory, poisonous and in my view, completely against what your standard unsophisticated (a high compliment if ever there was one) individual would expect the share market to be for.

 

[Izzzzzzzzzzy]

I am only paraphrasing and remembering a fact, before our run up to 2.30, one of the BRN employees stated to the public and the presentation/discussion was recorded in a video that we will be worth a few billion. Just something fun that I just remembered

 

[Deleted member 118]

Why does Brainchip use LDA instead of a cap raise?

 

[Labsy]

Ditto

Tritto

 

[Straw]

Why does Brainchip use LDA instead of a cap raise?

Certainty of funding over a relatively long period is my guess, regardless of the prevailing view of the company's prospects short term (manipulated or not).
I could be totally wrong.

 

[Deleted member 118]

Certainty of funding over a relatively long period is my guess, regardless of the prevailing view of the company's prospects short term (manipulated or not).
I could be totally wrong.

So what are the benefits apart from long term and every time LDA have cashed out it’s smashed the SP, so wouldn’t it have been easier just to cap raise?

 

[Fact Finder]

I am only paraphrasing and remembering a fact, before our run up to 2.30, one of the BRN employees stated to the public and the presentation/discussion was recorded in a video that we will be worth a few billion. Just something fun that I just remembered

Yes you are right that was Ken Scarince the Chief Financial Officer.

Since that presentation Peter van der Made said to one of the shareholders at the after 2022 AGM in Sydney get together when he said that ARM might acquire Brainchip Peter responded or we might acquire ARM.

On a serious further note the CEO Sean Hehir said in an interview following the AGM that the true value of Brainchip was multiples of the present value. (my paraphrase)

We are clearly not alone on our deluded island in our thinking that Brainchip is massively oversold.

My opinion only DYOR
FF

AKIDA BALLISTA

 

[Straw]

So what are the benefits apart from long term and every time LDA have cashed out it’s smashed the SP, so wouldn’t it have been easier just to cap raise?

The answer is I'm not totally sure.

I think there has been one instance of a very poor showing for a CR much earlier in the company's history (please correct me if this is wrong).
However I do feel a capital raise would have been appreciated by many. On the other hand it is set up in tranches so I'm guessing it spreads the pain a bit and brings a lesser dilution (or maybe that is just greater funding for the same shares which I guess amounts to a similar result) the further the company progresses in the eyes of the wider market.

As far as I can see it has largely been of benefit to the company and those with a med/long term view but that is an opinion only.

Anyhow I'm sure there are some welcome qualifications to be made from some more knowledgeable on the subject.

 

[FrederikSchack]

Yes, the logic fails because China is 99% unlikely to invade Taiwan for one simple reason that the media never mentions. China already promotes to its people that Taiwan is a province of Mainland China just like Hong Kong. So wouldn't it be strange to invade your own province? Like Australia invading Tasmania?

I guess they could create a narrative that they needed to use the military to go in, but invading is not in China's playbook. They are more likely to try and get politicians inside and turn the country around that way.
Our media and Western media in general is so full of shit, don't rely on it.

There are many scenarios, but from China´s perspective, it´s all about getting control over Taiwan and that´s going to affect chip supply. The US is trying to push China out of chip supply, to the degree where US citizens working in China have to stop working, so I think no matter how peaceful the takeover will be, there´s going to be payback to the US and possibly others. If China can manage to keep the delicate processes running, they´ll leverage it.

A military takeover is not unlikely, like a big military exercise around Taiwan suddenly and unexpectedly was reality. Furhter Xi has stated some time ago that China will be ready to invade Taiwan in I think it was 4 years, but after he became dictator for life he has promoted the idea even further.

But I get everyones point, it´s not as obvious to everybody

B.t.w. I´m fully aware about the mainstream media and I was saying this way before msm

 

[thecsguy]

Thanks for your opinion, Brainchip is still a very good investment for me, I will take the chance, so I choose to buy at this price..

Yes, same here. I have got more on last Friday and today.
Thank you for the shorters for giving me the opportunity to purchase this at a 20-25% discount!

 

[HopalongPetrovski]

Yes, same here. I have got more on last Friday and today.
Thank you for the shorters for giving me the opportunity to purchase this at a 20-25% discount!

Indeed, and may they rot in hell.