BRN is not a run-of-the-mill company with a single product or known product range and established customers. Even the product development roadmap changes with the rapid developments in the market and changing customer requirements.Allow me to offer a different perspective.
All senior management is aware of inner company dealings, contract bids, new engagements, goals, budgetary issues and product developments.......and other goings-on that the company is sworn to secrecy....NDAs and the like, buyout and merger feelers, bond offerings and stock offerings
Balance that against the fact that we read about insider buys and sells frequently in other companies. All the time really. I believe there are newsletters that track these potential 'indicators'. So ask yourself how could an insider ever buy or sell in the open market if they know so much that is both positive and negative for that specific company.
Well there are rules...blackout (quiet) periods before and after earnings, pending announcements that an average investor would expect to alter the perceived value of the company (that you shouldn't be sharing with your brother-in-law broker).....ie things that you could be sent to jail for. You know...your product doesn't work, inklings of fraud, government auditors appearing unscheduled....you get the picture.
Well BRN.AX has rarely triggered any of these conditions outside of certain earnings blackouts and major announcements such as tape-outs or IP sales.
Insiders can buy and sell frequently regardless of what Sean MAY have led some shareholders to believe.
And insider buying shows great confidence in the company's prospects.
So management, let's pony up and demonstrate some confidence.
Akida is in a state of continuous rapid development.
We were (mostly) pleasantly surprised to learn about the capabilities of Akida 2, which had been under development for a considerable time before it was announced. Akida 2 has capabilities which no one outside the company had imagined. TeNNs were not part of any previously disclosed development road map. Anyone with pre-knowledge of TeNNs who bought shares before the release of Akida 2 would have been guilty of insider trading.
We know Akida 3 is in development, but we don't know what surprises it will embody.
The iceberg analogy has been used in relation to BRN because fully two thirds of its potential customer base is under NDA.
Some of BRN's customer engagements are in the form of joint development partnerships, again giving the board and management exclusive confidential knowledge not available to the market about the progress and intended destination of the joint development and associated commercial aspects.
I don't know about the US, but in Australia insider trading is a jailable offence, so I understand the board and management's abstinence from on-market trading.
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