Pappagallo
Regular
I have mentioned that my curse in life is to remember things and one of the things I remember is the former CEO Mr. Dinardo two calendar years ago when the Brainchip share price jumped and knowing everything that was in play was asked about the share price creating a billion dollar Brainchip and he expressed surprise.
He was widely criticised on HC over his statement as it was seen as a lack of faith in the company and an expression that the share price was too high at that time. The trolls had a field day with this statement and 'Shares for idiots' constantly referenced his statement.
At the time I defended Mr. Dinardo because as a CEO of a publicly listed ASX company he had an obligation to be truthful and all he was doing was what a reasonable shareholder should expect by not creating a false market. He was surprised. I was surprised. I expect every one who remembers it and was a genuine holder of Brainchip's shares was also surprised.
Mr. Dinardo had full knowledge of where the company was at and it would have been grossly negligent of him to have said anything at that time which would have raised unrealistic expectations because of his position in the company.
So why have I reminded everyone of his statement. Simple it is to amplify the significance of the following statements of the now CEO Sean Hehir:
These were not off the cuff remarks spoken in haste these were considered and planned statements agreed to be communicated by the Board. How do I know this well he did not qualify them with "This is my opinion only." Therefore the Board has approved his use of these words.
- BRN market cap (at close to $2bn) is not even close to topping out based on size of the market – a lot of room to grow).
- Market cap not even close to where it can and should be
Further he did not tell the audience to read a Disclaimer about forward looking statements. Therefore the Board has approved his use of these words.
In a nutshell he has put himself and the Board squarely in the bullseye of any legal action that might flow as investors and shareholders are entitled to rely upon what he has said.
So on the one hand we had an honest CEO Mr. Dinardo resist the opportunity to pump the share price and create a false market as it would have been dishonest.
On the other hand we have had an honest CEO Mr. Sean Hehir with the approval of the Board now state the present share price does not reflect where the share price should be based upon everything he knows including the size of the market.
If the statement by Mr. Dinardo was sufficient to justify considering the share price had run too hard then you could reasonably think that the statement by Mr. Sean Hehir justifies a belief that the share price has not yet run hard enough and the company is undervalued.
My opinion only so DYOR
FF
AKIDA BALLISTA
I remember Ken Scarince saying something similar in an interview last year re the MC being worth “a few billion” in the coming years. I took a few to mean more than two at the time but it’s possibly a lot more in light of Sean’s comments.
So now we have had both the CEO and CFO publicly state that we’re undervalued. It’s illogical for anyone to disregard these comments as off the cuff remarks IMO. They’re consistent with each other and confidently put forward and that confidence comes from somewhere.