Good morning
@DingoBorat
Your GIF actually reminds me of the poor shareholders who have ''averaged down'' all the way to 19 cents.
Kept thinking the wind will turn and they could peacefully have a piss, but the wind turns when it turns, there is no pointing in fighting.
All they had to do, is either turn the tap off or just turn around but I guess we all have our biases when it comes to being right or wrong.
Which brings me to the point, shorters don't care being right or wrong. They are in here to make money, which as we all know, they have, in plenty. This ''battle'' is not a battle at all, it is just a punt. These shorters are not some countries where they gather to attack some middle eastern area because they found Oil.
The shorters are just punters. How?
Addressing your point #1, Well, now the SP is deteriorating they are turned around to piss, the moment the wind turns and there's a splash on their face, they will turn around to the right direction, in this case along with us and come for the ride on the long side. We would think that we have ''won'' the war, but these guys are pros with risk management in place. As your chart suggest, nearly 1.5% shares are already covered. There is a small uptick but as any chart it could be just seen as a ''relief rally''.
So even though when the SP appreciates, we may think we have ''won'' the war, those shorts are now long. Some of those will also have hedged positions, some may play the arbitrage. Sure, just like us they lose money too, but it is all a numbers game where risk management and position sizing come to play.
Addressing your point #2, I'd have thought that removal from ASX200 would reduce the number of short available for the big instos, but I am not 100% sure on this.
My theory is we are looking at the wrong picture here concentrating on shorts. We ''only'' have about 6.5% shorts here, where as some of the companies overseas have 100% or even more in US. That would create a short covering explosion.
So in comparison 6.5% is not huge.
However, once the moment management become proactive with contracts and sales, this 6.5% will surely help us a bit. As you said, with substantially low volume and unavailability of short covers.
So a few things happen at the same time when we have some substantial news from the management on ASX.
1) Shorts will cover
2) These shorts will then become Long.
3) Investors who jumped out of the ship will jump back in.
4) Investors who have never heard of us will have a look.
All these will ensure we are taken care of as evident from a couple of years ago.
I personally think we are so glued on to what shorts are doing, and how they ''manipulate'' things, well look, it is not under our control.
Management and sales team just need to do their job, and we all will be Happy as Pharrell Williams.
Management repeatedly say ''SP'' is not under their control.
Well that is a load of BS.
Every time they have announced an IP contract or something substantial, there has been SP rise. So it is under their control, to some degree. The rest is human emotions and sentiment.
Now we are here because we have not had any news
through proper official channels, i.e., ASX.
As to your prediction, I'd love to see the SP in 30 cents. Hopefully a close above 33.5 cent mark. That will sure bring some interest back to Brainchip imv.
Have a great day!
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