I hope this saves someone a few dollars. Because posts as solid and as informative as Chapman's always are reassuring and comforting. Below though is my experience through investing and what has saved me alot of losses with the lessons applied..
I found in the past that when an investment is underperforming in value, I always tried to search for more information to reassure myself I was on the right track, then to be able to justify the narrative and research that everything is ok.
In essence what I discovered was that no matter how much sleuthing or digging, or researching I did, no matter how much I read market research and information on a company's progress through social media, company websites, company announcements etc etc, it didn't really make any difference to the bottom line, which was the dwindling value of my hard-earned income.
I found a better way- if my investment is down more than 10%, my entry was incorrect, the market is off, or the company invested in isn't yet as good as what my research suggests. So I sold, protected my capital, and at the same period of time started learning how to study the characteristics of strongly performing companies and the metrics of the only thing that matters- the supply and demand in the buying or selling of a stock.
Once there was a decent body of evidence that a company was attracting demand in its buying of shares, then and then only would I take more interest in digging into the company's financials and nuts and bolts of the business.
A company like BRN has a relatively large amount of shares on issue which in turn takes a longer period of time to accumulate positions before the tide will turn in favour of an appreciating share price. Case in point the past few decent runs BRN has had, took atleast 12-18 months of basing and buying to wear out the sellers and allow price to rise.
So with that all in mind whenever I start digging to find more information on why an investment isn't working within a close period of buying, it reminds me that there's a signal I probably need to sell and reassess things.. And the bank account will thank me for it in the long run..
I've been there and there's no solace for those that are sitting on big losses and I feel for you, but if you learn this tough lesson you might have the opportunity of longevity in markets and a positive experience in the long run.
Cheers.. And of course I hope we start seeing some more positive price action for BRN, because I'll be an as enthusiastic a shareholder as ever.
I hope this means you are still a holder, but just pointing out we could all be less-in-the-red following some of this guidance.
If not, and you have sold, then good luck!
I agree, that an early exit from a bad investment is a solid idea, preferably mixed with some Technical Analysis to further determine entry points in the future.
But it is too late now for most to act this way. The red, is very red for some and TBH we are likely near the lowest point we will ever see again.
An exit now could be the classic buy hell sell low strategy.
With Scala3 upcoming, the potential for both Renesas and Megachips to take products to market by years end, AKD1500 out and evaluating, and AKD2000 soon to be released, I think we have the most solid foundation we have ever had.
We also have less direct news, like ANT61 launching soon, potential for more engagement on LinkedIn with Markus Schäfer (MB) regarding Neuromorphic tech in future cars, Edge Impulse constantly and relentlessly beating our drum, Tata announcing we
will be integrated in devices and so on.
We also still have 34 confirmed partners/customers we are engaged with, and probably many more under NDA.
Personally I've never been more excited, I can't wait for the market to catch up.
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