For the sake of newcomers I feel it is a good thing to reinforce that all public companies must disclose their ability to go forward as ‘a going concern’ in each financial report.
In relation to BRN;
I posted I felt the price was still being played with and might slip in the unpredictable months ahead without solid news to sustain it
I supported my view by way of known information ;
- These comments published last week in the SMH ;
“...DiNardo says the company expects to be in a position to announce contracts to license its intellectual property to customers in the first half of next year.
"Those licenses are probably more near term than large volume chip sales which will take time," he says.
"As we get into the later part of 2021 we should start to hit our stride with chip sales,
that’s six-to-nine months away."
Pitt Street Research managing director Marc Kennis says this is where the market will be able to provide a proper valuation of the stock...”
I mentioned the SMH reference to finances/going concern tags - ie its’ reminder BRN was at the speculative end of the spectrum ( as you say LJohn, as many are ) to reinforce that in my view -if there is a market crash - people might sell their shares here as speculative companies are not generaliy considered ‘safe havens’.
If this was to happen the price might fall.
Here’s my post : [link]
In response I got this :
I replied to tigers validating my view the SMH had not been telling porkies [here is that post] and things escalated from there.
For me the main point was not about going concerns, just that BRN is ranked at the speculative end of the market in uncertain times.
To add something new, it would be greatly reassuring (for me anyhow ) to see a stable institution has come on board at current prices or higher
POSTSCRIPT ; a recent story from the AFR from someone more experienced in the ways of market movers and movements than me...
Tom RichardsonMarkets reporter and commentator
Oct 1, 2020 – 10.00pm
Brainchip – the latest member of the S&P/ASX All Tech Index and poster-boy favourite of less sophisticated Robinhood-style retail investors – is employing some unconventional ways to raise cash.
The company, many of whose shareholders do their research on Facebook, boasts it has developed a computer chip that can process data like a human brain in an artificially intelligent way.
Consequently, it topped $1.4 billion on September 9.
This despite earning just $US12,000 ($16,360) in revenue in 2020, with cash on hand a paltry US$5.3 million as of June 30.
Ordinarily a cash-strapped $1 billion tech company such as this might be expected to take advantage of a rocketing share price to raise capital to shore up the balance sheet, given the requirement to invest ahead.
Instead, Brainchip's US institutional investors have regularly been cashing in cheap options to help the company raise some cash.
On September 30 it issued another 15 million shares at 15¢ each to unnamed institutional investors.
Could it be the company is struggling to raise money at prices above 15¢, despite wild retail investor enthusiasm sending the stock as high as 97¢ on September 9?
Even at 15¢ it's arguably overvalued on a $239 million valuation.
On Tuesday, shares closed at 36¢ – comfortably double that.
(20min delay)