2022 BRN Discussion, page-2721

@aurelex90
https://hotcopper.com.au/posts/58879552

I'm just a random dude on the internet, and nobody knows is the truth. My guess is somewhere between 70c and $1.13. It might retrace a bit and then trade in a channel sideways with ups and downs. Two weeks ago if someone said BRN would be $1 today you would think that would be good. Maybe 70c will become support, maybe $1. A momentum trader would wait for the bottom and confirmation of a turn around off the bottom using whatever system they use before re-entering.



I like the business and only bought in at the end of Nov '21. But the share price is not the business. The company didn't send the share price on a speculative run, the market did. From my reading of events this whole run is based on these words regarding the VISION SQXX concept car prototype released by Mercedes:

The hardware runs spiking neural networks, in which data is coded in discrete spikes and energy only consumed when a spike occurs, reducing energy consumption by orders of magnitude. In order to deliver this, the carmaker worked with BrainChip, developing the systems based on its Akida processor. In the VISION EQXX, this technology enables the “Hey Mercedes” hot-word detection five to ten times more efficiently than conventional voice control. Mercedes-Benz said although neuromorphic computing is still in its infancy, systems like these will be available on the market in just a few years. When applied on scale throughout a vehicle, they have the potential to radically reduce the energy needed to run the latest AI technologies.

https://www.embedded.com/software-defined-vehicles-drive-next-gen-connected-ev-development/

The current price trend is parabolic. That cannot be sustained. It will not be sustained. The price will revert to the mean. Right now it is nowhere within the vicinity of even the 9 day MA. Wow, I just pulled up a chart with the 9 & 21 day moving averages (the classic golden cross, which I don't tend to use, because it is too short term for me) and look, the 9 day MA is sitting on the 50% retracement level and the 21 day is sitting on the 78.6% fibbonaci retracement level.



I'm not advocating that anyone buy or sell. If someone is a long term holder it is completely legitimate to hold through the ups and downs but you have to be in for the long run and know that stocks like this can retrace 50% to 100% of their moves up. Even the ones that go on to ten bag or more. Especially those ones! Someone on this board mentioned today that they have their house deposit sitting in BRN and my opinion a roof over your head is a wiser long term investment than a speculative stock.

Two years ago pandemic no one had heard about six months earlier caused the stock market to crash 64%. Speculative stocks are the first to go down in a market downturn.