Hi All
To finish at the daily high of 36 cents is an interesting close to the weeks trading. Up over 26% today with solid volume.
The most interesting thing about this is that we have now been on the upward journey for almost two weeks.
During this week the ASX issued the speeding ticket and Brainchip answered NO. Historically for Brainchip this has normally led to a loss of retail investor confidence and the uptrend reverses. Yet not this time.
Here on TSEx we mostly are all on top of the press releases, the social media comments and the podcasts but having watched over at HC I am surprised how often a poster that I will know as a long term follower will come out with a question that suggests they are very poorly informed by TSEx standards.
For example we are all likely to remember Marketing Man from HC. Long term holder and has written articles covering Brainchip. Over a week ago now I read a post by him and he was asking who Unigen was and in his response he admitted that he had missed the press release about that partnership.
I have been critical of not using the ASX simply because it is obvious that most Australian Retail get their information about companies from ASX alerts and announcements.
The example of Marketing Man and Unigen suggests strongly that our knowledge about the VVDN Edge Box and Infineon, Microchip and OnSemi is most likely not generally known by retail investors here in Australia.
So could it be that the uptrend we are witnessing is being driven by someone or something taking a position.
Brainchip is certainly snuggled up with ARM, Intel, Tata Holdings, Renesas, Megachips, Mercedes Benz, Socionext, Valeo, Edge Impulse and likely Nvidia.
While I think Brainchip is unlikely to overnight become a leaky ship there are a massive number of partners known and unknown with hundreds of thousands of employees that could be in possession of information either directly or indirectly as a result of these relationships.
It was obvious at HC that some well known traders of Brainchip shares sold when the speeding ticket came out expecting the usual retreat once the answer NO was made public fully expecting the uptrend to have concluded. We even had the obligatory MF article and the typo in the announcement to raise retail investor panic.
Anyway I think the best advice is to be very careful because even though we at TSEx have sufficient knowledge to justifiably believe Brainchip is undervalued my personal impression is that ordinary retail investors do not and so it is not ordinary retail buying and more likely they are selling. If this is correct then who or what is buying in these numbers????
My opinion only DYOR
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