I think from watching the genuine reactions to the 4C over a number years that they fall in to two categories:
1. Those who Understand what a 4C is have already worked out what has happened in the past quarter in this case 1 October, 2020 to 31 December, 2020.
2. Those that have no idea what a 4C actually is and have completely unrealistic expectations and panic when those expectations are not met.
Those in category 2 are subject manipulators. There is a very old piece of wisdom which states “Knowledge is Power” so I am going to offer some knowledge to this group.
According to the ASX Listing Rules the sole purpose of each 4C is to give early warning of a company running into cash flow problems. There is a standard form prescribed by the ASX for 4C reporting and if a company has less than three quarters of cash flow it has to provide additional information on the 4C reporting form.
The 4C report is not to be used for price sensitive announcements. These announcements are provided for elsewhere in the ASX listing rules.
So as I fall into group 1. I know that Brainchip has heaps of cash so the 4C will be positive and that is the end of this it ax far as I am concerned. This great company is not going broke.
As I know when the EAP customer boards went out most in November invoices that went out to these customers are unlikely with Christmas intervening to have been paid and receipted in December so I do not expect any to show up in this 4C.
Renesas signed up on 23.12.20 so no chance in hell that anything regarding payments from Renesas will show up they are not like us buying a car where they have to pay when they sign.
If you want to inform yourself in detail about 4C reporting Google ASX Listing Rules Guidance Note 23.
If you now allow yourself to be manipulated following the 4C I don’t know what else I can say.
My opinion only please DYOR.
BRN Price at posting:
61.5¢ Sentiment: Hold Disclosure: Held
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