BRN Discussion Ongoing

[Fullmoonfever]

Hi Everyone

Just in regards to shorters, I'm trying to understand the way they work.

My understanding, which I could be completely wrong so please correct me.

They borrow a heap of shares, do they sit on them and then decide when is a good time for them to sell them, they then sell a massive amount so as to spook the market, triggering stop losses, thus this reduces the SP all the more and then when they think they've hit rock bottom they quickly buy back in so they can then return the borrowed shares? If this is the case then can we expect some frantic buying from them over the next couple of days/weeks, which should recover the SP?

Also thinking about the SP, I've been in since my baby girl was born, she's now 10, I see there are a lot of people here who are not happy about the SP and it seems that this is their only focus. I'm curious say if the SP had shot up to $1, would you sell or hold knowing what the potential is for BRN, I know I wouldn't sell, if you would still hold how is that any different to holding now. I appreciate some may need the money now which if that is the case I feel for you. I think people were expecting to see revenue towards the end of last year but the plan changed from a Chip supplier to selling IP which meant changes had to be made which took time to implement. I think that we could all agree that this will be far more beneficial for BRN in the long run.


Happy to be corrected, I don't often contribute here so please don't shoot me!

Thank you to all the great posts and finds, they are very much appreciated.


Also sorry if a similar question has already been asked about shorters.

Some info for you. Hope you get something from them.

Short selling is obviously an allowable transaction in the normal course of trading and can also be used for hedging but also by so called activists.

Short Selling: Pros, Cons, and Examples

Short selling occurs when an investor borrows a security, sells it on the open market, and expects to repurchase it for less money.

www.investopedia.com

Activist shorting is the same mechanism but can be driven differently as per the ASIC explanation and link below.

Activist short selling campaigns in Australia | ASIC

asic.gov.au

Activist short selling campaigns in Australia​

This information sheet (INFO 255) outlines the practice of activist short selling campaigns in Australia and ASIC's expectations to promote market integrity during these campaigns. It:

• briefly explains what activist short selling is
• describes the impact of activist short selling on markets
• provides an overview of the Australian regulatory framework relevant to these campaigns
• recommends better practices for activist short sellers and authors of short reports, market operators, target entities and market participants
• lists some of the actions that we may take in response to these campaigns.

INFO 255 should be read together with Regulatory Guide 196 Short selling (RG 196).

What is activist short selling?​

Short selling​

People sometimes sell (short sell) financial products they do not own with a view to repurchasing them later at a lower price.
Generally, where a person executes a short sale and relies on an existing securities lending arrangement to have a 'presently exercisable and unconditional right to vest' the products in the buyer at the time of sale, the sale is a covered short sale. Covered short selling in section 1020B financial products (e.g. securities, bonds and managed investment schemes) is permitted under the Corporations Act 2001 (Corporations Act).
Short selling without a securities lending arrangement is known as 'naked short selling' and is generally not permitted in section 1020B products in Australia. More information on short selling can be found in RG 196.

Activist short selling​

Activist short selling involves a person taking a short position in a financial product and then publicly disseminating information (e.g. one or more reports) directly or through an agent to negatively impact the price of the product ('short report'). A short report may, for example, criticise an entity's finances, management, public disclosures or future prospects. A short report does not necessarily have to be in the form of a formal report. It could be, for example, a post on a social media platform, blog or online forum. The activist short seller expects the short report to cause the price of the financial product to fall, enabling them to realise a profit.

Activist short selling campaigns are not new. Over time, they have received more attention with online news and social media outlets providing instantaneous access to a broad audience. This can exacerbate the speed and depth of the market's response to a short report.

Most campaigns against Australian entities have been by overseas activist short sellers that caveat their reports as not intended for an Australian audience. In practice, online distribution and reporting of campaigns by Australian media mean the reports (or their key messages) are widely accessed by Australians.

Our research indicates that activist short selling campaigns tend to target entities with complex and opaque corporate structures and accounting practices, or poor disclosure. They also tend to target companies with lower market capitalisation. There is also a tendency to follow cyclical trends (e.g. to target entities and industries that are high growth/high risk or may be overvalued or have experienced rapid security price growth). They may also target sectors that are technically complex and/or easily misunderstood (e.g. medical research, technology and mining).

Impact of activist short selling​

Investors expect to transact in a fair and informed market. When activist short sellers provide accurate and meaningful new information, they can have a positive impact on price formation and market integrity as they may counterbalance excessive market optimism.

Short reports can provide new research and analysis and test the veracity of information released by a target entity.

Some activist short sellers have exposed flawed business models, questionable business or accounting practices, insolvency and fraud in targeted entities.

However, activist short sellers can also unduly distort the price of a target entity's securities. For example, by making false or misleading statements, providing an incomplete view of the facts, drawing conclusions unsupported by adequate evidence or by using overly emotive or inflammatory language to distort the facts ('short and distort' campaigns).
Short reports are often released during trading hours for maximum and immediate effect on the price of the target entity's securities. The time taken:

• to request and implement a trading halt, and
• for the target entity to issue a response,

may result in a period of trading in the target entity's securities where the market is not fully informed.

If the claims in a short report appear plausible or if the market suspects the target entity is subject to a 'short and distort' campaign (regardless of the plausibility of the short report claims), they can cause significant and immediate security price volatility. Other investors may be induced into selling the target entity's securities for less than their true value, potentially resulting in financial loss. If the price fall is as a result of a false or misleading statement, this can undermine investor confidence in the market and may affect their willingness to participate in the future.

This activity can also harm the reputation of the target entity. In addition to creating doubt in the minds of existing shareholders, it may discourage future investors, negatively influence future valuations and the price of the target entity's securities, and impact the target entity's ability to raise capital.

 

[Fullmoonfever]

Legal shorting involves the shorter borrowing th shares at $x per share in the hope that the share price will fall. If the share price falls to, say, $y, where y<x, they can buy shares at $y to return them to the lender, making $(x-y) per share profit.

However, if the share price rises to $z per share, where z>x, the shorter can face a loss of $(z-x) per share.

The practice you mention of manipulating the share price down by selling shares below what would be the market price is illegal and widespread on the ASX.

One indicator is if the SP often falls on close or in the after-market auction.

The practice is facilitated by bot trading, where computers sell small numbers of shares to continuously edge the SP down. Bot trading can also be tantamount to insider trading in that the large brokers can monitor incoming bids and make a purchase or sale before the bidders transaction is fulfilled.

Both short selling and bot trading should be banned as they are tools for picking the pockets of unsophisticated share holders.

It would be interesting to see how much the brokers donate to political parties.

You'd probs enjoy this.

Worth a watch regards to a whistleblower on HFT and Quants.

I've watched a few times here and there to remind myself of how stacked the markets are against the retail trader.

 

[Diogenese]

From the Feb/Mar 2023 issue of Imaging and Machine Vision Europe.

Get a mention on the Prophesee partnership in the article which is a general discussion with Verre as well.

Yes, saw as a demonstrator but with desire for commercial relationship possibly too. Makes sense when read first paragraph.

Why you will be seeing much more from event cameras | Imaging and Machine Vision Europe

Advances in sensors that capture images like real eyes, plus in the software and hardware to process them, are bringing a paradigm shift in imaging, finds Andrei Mihai

www.imveurope.com

Neuromorphic computing progress

However, while neuromorphic cameras
mimic the human eye, the processing chipsthey work with are far from mimicking the human brain. Most neuromorphic computing, including work on event camera computing, is carried out using deep learning algorithms that
perform processing on CPUs of GPUs,
which are not optimised for
neuromorphic processing.

This is where new chips such as Intel’s Loihi 2 (a neuromorphic research chip) and Lava (an open-source software framework) come in.“Our second-generation chip greatly improves the speed, programmability, and capacity of neuromorphic processing, broadening its usages in power and latency-constrained intelligent computinga pplications,” says Mike Davies, Director ofIntel’s Neuromorphic Computing Lab.

BrainChip, a neuromorphic computing
IP vendor, also partnered with Prophesee to deliver event-based vision systems with integrated low-power technology coupled with high AI performance.

............

Smartphones are one field where
event cameras may make an unexpected
entrance, but Verre says this is just the tip
of the iceberg. He is looking forward to a
paradigm shift and is most excited about all the applications that will soon pop up forevent cameras – some of which we probablycannot yet envision.

“I see these technologies and new tech
sensing modalities as a new paradigm that will create a new standard in the market. And in serving many, many applications, so we will see more event-based cameras all around us. This is so exciting.”

Hi Fmf,

There are a couple of passages from the article which are intriguing.

This sentence is not attributed to Luca verre, and it does not quite align with his recent reply to @chapman89 which suggested that the relationship between Prophesee and Brainchip was quite preliminary ...

"BrainChip, a neuromorphic computing IP vendor, also partnered with Prophesee to deliver event-based vision systems with integrated low-power technology coupled with high AI performance."

... which almost reads as if there were a commercial product, or at least an engineering test product.

I doubt that there is an SoC with Akida and the Prophesee DVS, but separate chips could have been connected for testing. I would guess that an SoC would perform better than two separate chips.

Then the following paragraph is not shy about mentioning Loihi and Loihi2 in relation to research and development, but is coy about naming the "other neuromorphic chips ... emerging, allowing quick learning and training ... even with a small dataset".

Ongoing research is looking at ways to use neuromorphic neural networks to integrate chips and event cameras for autonomous cars. Since many of these applications use the Loihi chip, newer generations, such as Loihi 2, should speed development. Other neuromorphic chips are also emerging, allowing quick learning and training of the algorithm even with a small dataset. Specialised SNN algorithms operating on neuromorphic chips can further help edge processing and general computing in event vision.

Clearly Akida fits the description of the nameless chip.

 

[Fullmoonfever]

Hi Fmf,

There are a couple of passages from the article which are intriguing.

This sentence is not attributed to Luca verre, and it does not quite align with his recent reply to @chapman89 which suggested that the relationship between Prophesee and Brainchip was quite preliminary ...

"BrainChip, a neuromorphic computing IP vendor, also partnered with Prophesee to deliver event-based vision systems with integrated low-power technology coupled with high AI performance."

... which almost reads as if there were a commercial product, or at least an engineering test product.

I doubt that there is an SoC with Akida and the Prophesee DVS, but separate chips could have been connected for testing. I would guess that an SoC would perform better than two separate chips.

Then the following paragraph is not shy about mentioning Loihi and Loihi2 in relation to research and development, but is coy about naming the "other neuromorphic chips ... emerging, allowing quick learning and training ... even with a small dataset".

Ongoing research is looking at ways to use neuromorphic neural networks to integrate chips and event cameras for autonomous cars. Since many of these applications use the Loihi chip, newer generations, such as Loihi 2, should speed development. Other neuromorphic chips are also emerging, allowing quick learning and training of the algorithm even with a small dataset. Specialised SNN algorithms operating on neuromorphic chips can further help edge processing and general computing in event vision.

Clearly Akida fits the description of the nameless chip.

Hi D

Agree not attributed to Verre hence me saying was a brief mention and article a general discussion with him.

Also agree re response @chapman89 got and posted hence saying I saw it was a "tech demonstrator" I believe was the term used.

(Edit) I thought I read somewhere (Ann) Prophesee had been ported to Akida or am I thinking of something else?

Also agree with your intrigue.

Posted it to allow others to come to their own conclusions or assessment as you have.

Thought was an interesting article overall and definitely somewhere we could fit as you say.

 

[Fullmoonfever]

Hi Fmf,

There are a couple of passages from the article which are intriguing.

This sentence is not attributed to Luca verre, and it does not quite align with his recent reply to @chapman89 which suggested that the relationship between Prophesee and Brainchip was quite preliminary ...

"BrainChip, a neuromorphic computing IP vendor, also partnered with Prophesee to deliver event-based vision systems with integrated low-power technology coupled with high AI performance."

... which almost reads as if there were a commercial product, or at least an engineering test product.

I doubt that there is an SoC with Akida and the Prophesee DVS, but separate chips could have been connected for testing. I would guess that an SoC would perform better than two separate chips.

Then the following paragraph is not shy about mentioning Loihi and Loihi2 in relation to research and development, but is coy about naming the "other neuromorphic chips ... emerging, allowing quick learning and training ... even with a small dataset".

Ongoing research is looking at ways to use neuromorphic neural networks to integrate chips and event cameras for autonomous cars. Since many of these applications use the Loihi chip, newer generations, such as Loihi 2, should speed development. Other neuromorphic chips are also emerging, allowing quick learning and training of the algorithm even with a small dataset. Specialised SNN algorithms operating on neuromorphic chips can further help edge processing and general computing in event vision.

Clearly Akida fits the description of the nameless chip.

Had to go check.

From our Ann at the time.

Verre's statement at the time also seems pretty definitive

“We’ve successfully ported the data from Prophesee’s neuromorphic-based camera sensor to process inference on Akida with impressive performance,” said Anil Mankar, Co-Founder and CDO of BrainChip. “This combination of intelligent vision sensors with Akida’s ability to process data with unparalleled efficiency, precision and economy of energy at the point of acquisition truly advances state-of-the-art AI enablement and offers manufacturers a ready-to-implement solution.”

“By combining our Metavision solution with Akida-based IP, we are better able to deliver a complete high-performance and ultra-low power solution to OEMs looking to leverage edge-based visual technologies as part of their product offerings, said Luca Verre, CEO and co-founder of Prophesee.”

 

[Beebo]

Somebody knew something, just so happens 1,869,097 shares shorted the day before the BIG BANG.

View attachment 29660

Yes. LDA, or any other capital raise institution, is poison! Simple as that.

 

[charles2]

Mr. Dawe responds

Insiders/Directors rights to purchase/sell Brainchip shares

To clarify misperceptions I initiated the following correspondence:




Dear Brainchip Management/Investor Relations

I am a US national who owns xxxk shares of BRCHF.

I participate in the TSX forum to discuss Brainchip and have been taking grief for my suggestion that Brainchip insiders could show support for the company by purchasing some shares in the open market and filing the necessary documents .....ie what I would call legal insider trading. This would indicate optimism in the future of the company, likely be a good investment and put short sellers on notice that further pillaging the company could be risky financially.

Now I am not sure if the ASX is a peculiar beast but I am an investor in listed companies in North America where insiders are buying because they feel the companies' prospects are undervalued/underappreciated and that the likelihood is that the share price will go up.

Of course all insiders have information that the investing public does not have. But my understanding of legal insider trading is that they the insiders when buying do not have information that is likely to alter the share price greatly in the near future....ie a buyout, significant partnership/investment or on the flip side an imminent bankruptcy or significant loss of revenue from a contract cancellation.

If my above perspective is not correct please inform me how any insider could ever buy shares in the company, or sell them for that matter.

Thanks in advance for your response. I plan to share your insights with the TSX site as I feel it would be most clarifying.

Sincerely

Charles2







RESPONSE FROM MR. DAWE:






Hi Charles,



Thank you for your email.



BrainChip executives and directors are able to purchase shares in the Company, subject to the conditions imposed by our Securities Trading Policy, which is posted on our website.



In short, directors and employees can purchase shares in the company during certain specified trading periods and with proper approval.



The question of whether they do, or do not, is a personal choice, and is determined by their own personal financial circumstances.



As a shareholder in BrainChip myself, I would like to see the share price go up rather than down, but I think we both understand that what the market really wants to see is the Company deliver commercial agreements that generate sales revenues.



That is the major catalyst for improved market sentiment.



Regards




Tony Dawe

 

[Deleted member 118]

Man, it was a real trial getting my SMSF set up..

From having my application audited by the ATO, to banking system short comings..

I would have loaded up whatever I could, no matter the price at this stage..

I'm definitely not thrifty, when it comes to share purchases.

I just gotta have them.

The man with the most tickets, when the music starts playing, wins!

And when it does start playing, no one will be able to stop it...

Congrats with the timing even so it might be more luck than anything

 

[Foxdog]

but I think we both understand that what the market really wants to see is the Company deliver commercial agreements that generate sales revenues.

Absolutely Tony, sales revenues will turn the SP decline on its head - very quickly. I think it's time for the company to explain clearly why commercial agreements haven't been made as quickly as expected. Is it the tech, testing delays, product development issues, competition? Is there a revenue runway building that requires time to mature and we just have to wait patiently for results. Shareholders need some company disclosure to keep the faith, particularly when shorters are decimating our investment.

 

[Sirod69]

Sorry, but it had to be now, the day isn't over for us in Germany yet and I'm still looking at this horrible RED!
Maybe I'll bring a smile to your face too
Others of you will say boooooring
I also lost playing cards today *laughs

Doesn't matter!

 

[Dallas]

NaNose Medical on LinkedIn: #horizoneurope #lungcancer #screening #earlydetection #diagnose

Proud to announce that NaNose Medical is taking part of the LUCIA EU Project! This consortium brings together 22 partners from 9 countries under the…

www.linkedin.com

 

[alwaysgreen]

Mr. Dawe responds

Insiders/Directors rights to purchase/sell Brainchip shares

To clarify misperceptions I initiated the following correspondence:




Dear Brainchip Management/Investor Relations

I am a US national who owns xxxk shares of BRCHF.

I participate in the TSX forum to discuss Brainchip and have been taking grief for my suggestion that Brainchip insiders could show support for the company by purchasing some shares in the open market and filing the necessary documents .....ie what I would call legal insider trading. This would indicate optimism in the future of the company, likely be a good investment and put short sellers on notice that further pillaging the company could be risky financially.

Now I am not sure if the ASX is a peculiar beast but I am an investor in listed companies in North America where insiders are buying because they feel the companies' prospects are undervalued/underappreciated and that the likelihood is that the share price will go up.

Of course all insiders have information that the investing public does not have. But my understanding of legal insider trading is that they the insiders when buying do not have information that is likely to alter the share price greatly in the near future....ie a buyout, significant partnership/investment or on the flip side an imminent bankruptcy or significant loss of revenue from a contract cancellation.

If my above perspective is not correct please inform me how any insider could ever buy shares in the company, or sell them for that matter.

Thanks in advance for your response. I plan to share your insights with the TSX site as I feel it would be most clarifying.

Sincerely

Charles2







RESPONSE FROM MR. DAWE:






Hi Charles,



Thank you for your email.



BrainChip executives and directors are able to purchase shares in the Company, subject to the conditions imposed by our Securities Trading Policy, which is posted on our website.



In short, directors and employees can purchase shares in the company during certain specified trading periods and with proper approval.



The question of whether they do, or do not, is a personal choice, and is determined by their own personal financial circumstances.



As a shareholder in BrainChip myself, I would like to see the share price go up rather than down, but I think we both understand that what the market really wants to see is the Company deliver commercial agreements that generate sales revenues.



That is the major catalyst for improved market sentiment.



Regards




Tony Dawe

Exactly what I've been banging on about. Straight from TDs mouth.

"what the market really wants to see is the Company deliver commercial agreements that generate sales revenues".

TD if you are reading this, can we get some sort of explanation as to why we can't deliver?

 

[Foxdog]

Exactly what I've been banging on about. Straight from TDs mouth.

"what the market really wants to see is the Company deliver commercial agreements that generate sales revenues".

TD if you are reading this, can we get some sort of explanation as to why we can't deliver?

Or a timeline of when current engagements are expected to deliver?

 

[Cyw]

Or a timeline of when current engagements are expected to deliver?

We were told to look at the financials in the second half of 2022. We did and nothing happened. With all the new sales people employed, there has got to be a target of some sort. So what is the new timeline?

 

[charles2]

Or a timeline of when current engagements are expected to deliver?

At the risk of over interpreting (apologies to Mr Dawe if so) to offer this in response indicates to me that management malcontent over the share price has moved to or is near the top of the "to do" list.

After all they and their employees are shareholders and recruiting with a dismal share performance could make their ubiquitous pitch suspect.

Plus for further insult they are raising money with weakened shares.

My suggestion to management: Remove your tenured Ivory Tower hats and show some marketing grit.

 

[Foxdog]

We were told to look at the financials in the second half of 2022. We did and nothing happened. With all the new sales people employed, there has got to be a target of some sort. So what is the new timeline?

Some targets are waiting for AKIDA1500 so if it tapes out successfully and performs to expectations then signed agreements should follow - timeline here, who knows? Release of AKIDA2000 (with transformers?) May be another thing some are waiting for before signing up. Current AKIDA must be close to signed deals (Nanose, Merc etc). I think this is the timeline we need an update on as it is overdue. All the company needs (initially) is revenue to cover operating expenses and the SP will recover accordingly.

 

[cassip]

Dear Chippers (@Esq.111 : i like this term and use it here because of this) who claim revenue,

we were given that explanation why there are delays. And you can stand on your head, it will not change the circumstances. It is really fact one is more than tempted to neglect it or to put it aside, but the uncertainty is immanent.

I read the history of Brainchip and sometimes, as I do not know people in person, I have my doubts about the outcome. But what there is to read, reads authentic.

Of course, who to trust in this times?

Everybody has the right to choose. Sell or support.

Support seems more strong at this time. And important, I guess.

This is why I appreciate this forum that much. It has the power to support.

 

[Sirod69]

We were told to look at the financials in the second half of 2022. We did and nothing happened. With all the new sales people employed, there has got to be a target of some sort. So what is the new timeline?

Gentlemen, I really understand all the frustration.
But..
This is about a small chip, let's say tiny tiny. This chip is built into things that, let's say, from Bosch (household appliances), Samsung (smartphones), Mercedes (cars) etc... surveillance cameras, drones, whatever. Now I am e.g. BMW and say I want to install this chip, but I buy it from a customer of BRN who also have to insert it into my product with hardware and software engineers.
Now, however, the market reacts to all sorts of unexpected situations around the world and something falters. Then I, meaning BMW, don't want to tell anyone how I make my product, because I'm using it for advertising and I want to have an advantage over other products. So now we come to the secret agreements.

We still don't know where we are and the BRN team certainly won't tell us either.

And how should they tell us a point in time. They can't. Anyone who understands what I mean knows that this takes time. I have no idea if that came across to you the way I meant it.

 

[cosors]

I walk and ball my head off like others went golfing today.
From 02:30

How good that tomorrow is the day of fools in my city and this continues with full force until next week.

 

[The Pope]

Not from what I have been told...I personally think that the whole situation with LDA Capital is extremely messy, and at some stage I do
hope that the CEO will explain why the Board called it so early into 2023.

I have seen a (sort of) explanation as to how this LDA put option is supposed to play out, but the floor price set by Brainchip has me thinking,

Today is the first time I have noticed the ASX send a company a please explain notice, because the share price has dropped. I personally find their behavior totally absurd.

May I also say that I think that having Peter put himself out there on Linkedin was great! asking followers to comment on what they would like him to comment on, such a brave move, and going by the two or so comments suggests to me at least, many are too afraid to ask him anything because of fear of possibly being laughed at or realizing they are exposing themselves to someone who has an IQ way above the average shareholder, me included, and fear being embarrassed.

I can assure you, 100%, our founder will never judge you.

The upcoming podcast is yet another positive move by the company, we all want to hear from Peter and Anil (in my opinion) and I'd be very happy to have both our "top guns" make themselves available for half-yearly "fire side chats" throughout the year/s.

All staff are important, they all contribute and continue to contribute daily, but having our two key guys talking about our company in an honest relaxed manner is extremely uplifting for all shareholders, so every 6 months lets make it happen Brainchip, you're all appreciated.

Love Brainchip x

Tech

I know others have mentioned this before with some of your previous posts but your wording in some sections of this latest posts may suggest some possible insider info not privy to a retail shareholder etc.