BRN Discussion Ongoing
- Thread starter TechGirl
- Start date
7für7
Top 20
NopeSo no surprises here then
Newk R
Regular
Full of promise maybe but the board is full of shite. We may be going places but this mob ain't the ones to get us there I fear.
Hey Uiux, what do you think about our Annual Report?
It's hard to understand.
What do they mean by
the Australian R&D team handed redundancies and
no third-party pre-development services incurred in the current period (2023: $636,493)
Tothemoon24
Top 20
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Yoda
Regular
Regarding the announcement about relocation, I'm uncomfortable about them de-listing on the ASX and re-listing in the US (Nasdaq?) mainly because its inconvenient for me (e.g can't manage position through Commsec etc) and I am also a little concerned about getting equal/fair value in the new US shares. It's just out of my experience and comfort zone but that's not necessarily a bad thing.
However, on the positive side, and this is reflected in the announcement, US markets do have a different approach to valuing tech stocks and are more interested in potential rather than current revenue and that could be good for us in terms of share price.
Thoughts?
However, on the positive side, and this is reflected in the announcement, US markets do have a different approach to valuing tech stocks and are more interested in potential rather than current revenue and that could be good for us in terms of share price.
Thoughts?
Can't disagree with the positivity of a US listing potential. Becoming US-centric has made perfect sense for a long time and with Trump now in 'power' this could have been a catalyst. The capital call is concerning however given it's going to be used to keep us afloat.
entretec
Member
From ChatGPT
The re-domiciling of BrainChip to the U.S. and the transition from the ASX to a U.S. stock exchange could have significant implications for short sellers. Here’s how it might play out:
The re-domiciling of BrainChip to the U.S. and the transition from the ASX to a U.S. stock exchange could have significant implications for short sellers. Here’s how it might play out:
1. What Happens to Existing Short Positions?
Short sellers profit by borrowing shares, selling them at a higher price, and then buying them back later at a lower price. However, when a company delists and moves to a new exchange:- Short positions need to be closed out before delisting – If BrainChip shares are removed from the ASX, short sellers will likely be forced to cover (buy back) their positions before the delisting date. This can cause a short squeeze if many need to buy shares at once, driving the price up.
- New U.S. shares may not be borrowable immediately – Even if the company relists on a U.S. exchange, the ability to short the stock depends on brokers having available shares to lend. If these are not readily available, shorting could become more difficult, at least temporarily.
2. Could Short Sellers Get Caught Out?
Yes, here’s how:- Forced Buybacks (Short Squeeze) – If short sellers are unable to roll over their positions due to the ASX delisting, they will be forced to buy shares before the transition, potentially pushing prices up.
- Change in Market Dynamics – The U.S. market generally has more institutional investors who may have a different valuation perspective, reducing speculative shorting pressure.
- Different Regulatory Environment – The U.S. has different short-selling regulations, including tighter enforcement of naked short selling (selling shares without actually borrowing them). If BrainChip moves to an exchange like the NASDAQ or NYSE, this could limit some of the aggressive shorting seen on the ASX.
3. Possible Risks for Short Sellers
- Unexpected Buy Orders – If BrainChip announces a buyout, new partnerships, or U.S. institutional interest, short sellers may find themselves covering at much higher prices.
- Regulatory Hurdles – The SEC has been more aggressive in cracking down on market manipulation. Any hedge funds using illegal tactics might face investigations.
- Retail and Institutional Buying Pressure – The stock's exposure to U.S. technology investors (who may value AI companies differently) could make it harder for short sellers to justify their positions.
4. Will They Be Forced to Cover?
Most likely, yes—at least on the ASX. Short sellers holding positions on ASX-listed BRN will need to close their trades before the stock delists. Some may try to reopen short positions on the U.S. exchange, but if the stock gains buying momentum (from retail or institutional investors), it could become riskier for them.5. Could This Create a Short Squeeze?
- If a large number of shorts rush to close their positions before the ASX delisting, the share price could spike sharply in the short term.
- If there’s a scarcity of available shares to short on the U.S. exchange, shorting could become less aggressive post-move.
Bottom Line
The re-domiciling could put short sellers in a tight spot, especially if they are forced to close their positions before the ASX delisting. While some may re-establish positions on the U.S. exchange, changes in market participants, regulation, and potential new investor interest could alter the stock’s dynamics significantly. If BrainChip executes this transition well, shorters could lose their grip on the stock, at least temporarily.perceptron
Regular
While I have no experience in the US stock exchange, I am, however, excited about the company opening up to the US market and investors. As a computer scientist, I would also move to the US for better exposure. Exciting times ahead.
I feel the same regarding uncertainty with freedom to trade. However, could be great timing with the recent US Airforce contract for the US investors to push SP up???
Cyw
Regular
I hear you. Investing overseas is a pain in the rear. W8BEN, foreign income in tax returns, FX risks etc. I hope they can sign up a couple of the Magnificient 7s before they move to give me a reason to endure the pain.
From Chat GPT
A company may choose to move from the Australian Stock Exchange (ASX) to the U.S. markets for several strategic reasons. Here are some of the key factors that might drive such a decision:
A company may choose to move from the Australian Stock Exchange (ASX) to the U.S. markets for several strategic reasons. Here are some of the key factors that might drive such a decision:
- Access to Larger Capital Markets: The U.S. stock markets, such as the New York Stock Exchange (NYSE) or Nasdaq, are among the largest and most liquid in the world. By listing in the U.S., a company can access a broader investor base, which may provide more capital and better liquidity for its shares.
- Increased Visibility and Prestige: The U.S. is home to many of the world’s most influential financial institutions and investors. Listing on a major U.S. exchange can boost a company’s visibility and global profile, attracting institutional investors and potentially enhancing its credibility on a global scale.
- Broader Investor Base: U.S. investors are often more familiar with certain industries, particularly technology, biotech, and consumer goods, which might lead to higher demand for shares of companies in these sectors. This can drive higher valuations compared to being listed only on the ASX.
- Valuation Benefits: The U.S. markets tend to offer higher valuations for some types of companies, particularly those in high-growth sectors. This can be particularly attractive for tech or biotech companies that may struggle to achieve the same level of market valuation on the ASX.
- Diversification of Funding Sources: By listing in the U.S., a company can tap into a different pool of capital and create opportunities for future fundraising and partnerships with U.S.-based investors or firms. This may provide more flexibility in financing growth strategies.
- Acquisition or Merger Opportunities: Being listed on a U.S. exchange can make a company a more attractive target for U.S. companies looking to expand internationally. It also offers the potential for easier mergers and acquisitions due to greater visibility and access to larger U.S. firms.
- Investor Demand for Global Exposure: Many large U.S. institutional investors are focused on diversifying their portfolios internationally. A company listed on the U.S. exchanges might attract interest from these investors looking to expand into international markets.
- Favorable Regulations and Legal Framework: The U.S. has a well-established regulatory framework, which is familiar to many global institutional investors. Depending on the nature of the business, some companies may find U.S. regulations and tax policies more favorable than those in Australia.
- Strategic Alignment with U.S. Operations or Markets: If the company has significant business operations, partnerships, or market focus in the U.S., it may make sense to list there to better align with the geography and market dynamics it is targeting.
Food4 thought
Regular
As per asx announcement
What is everyone’s thoughts about listing on the American exchange??
Will it help our bottom line
Has there been pressure from governments to be the all American company
( making America great again )
I am thinking that if it happens when an announcement drops we will benefit
As we are not a mining company we should do better there than here but we need sales first.
What is everyone’s thoughts about listing on the American exchange??
Will it help our bottom line
Has there been pressure from governments to be the all American company
( making America great again )
I am thinking that if it happens when an announcement drops we will benefit
As we are not a mining company we should do better there than here but we need sales first.
Food4 thought
Regular
What we need is the Aussie dollar to go up by 40 percent before the move
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