2022 BRN Discussion, page-4327

@gastrader Flattery is liked by most and I am no different. (Would not link)

My son who is now out of his gardening period was in a senior position with the Bank of England. He and I argue the question of what is an appropriate present valuation constantly without any agreement. I come at it from a knowledge of Brainchip and he comes at it from a position of having an in depth knowledge of markets and market regulation as he was head hunted from his role with the FCA to the Bank because of his expertise in these areas. He sat me down last week and showed me his spread sheets where he had identified significant algorithmic trading and his view is that the present value cannot be determined and relied upon because Brainchip is the perfect target for manipulators as we have seen today. The manipulation in his opinion is coming from three sources, traders some sophisticated, shorters some sophisticated backed by institutions and institutions accumulating positions for any number of reasons. We are stuck with this for the time being. One thing that is certain German institutional investors are taking positions but who else.

What we both agree on is the medium long term prospects for Brainchip and we are rock solid in our confidence and agreement on this point.

Prior to reaching $1.50 I was of the opinion that it did represent a reasonable valuation based on known facts. Since this valuation of Pitt Street Research though we have had a number of new facts come too light starting with the appointment of the CEO and ending here today with the NASA and VW exposures.

So I would be disingenuous if I did not now have a view that a value higher than $1.50 was reasonable.I have a year end valuation of more than $2.75 which if I had expressed it on last Tuesday it would have made me look like a down ramper. LOL So the question is if $1.50 was a fair value how much should I add to it for the following:
1. Appointment of CEO Mr, Sean Hehir,
2. MegaChips IP licence,
3. The release of the AKD1000 chip & later news it performs better than expected,
4. The release of the Module and the Raspberry Pi Module for sale,
5. The release of the video showing AKD1000 performing facial and voice recognition etc; in car,
6. The further capital call at a time of a very favourable share price securing funding for AKD2000,
7. The Mercedes validation of the Akida technology advantage,
8. The ISL EAP agreement for a US Airforce Research project,
9. The NASA 90nm for space flight reveal by Anil Mankar,
10. The EE Times magazine hints at a VW Brainchip relationship on the back of prior statements by the former CEO Mr. DiNardo referencing VW,
11. The latest significant patent being granted and announced,
12. Rapidly increasing media coverage around the world of a positive nature,
13. The release of the latest consumer priced module together with the statement that Brainchip was now fully commercial, and
14. All of the statements about explosive sales growth, tip of the iceberg, insatiable demand by KMP at Brainchip, and margin of victory features.

Then as markets add in something for the future we have the promise of commercial deal announcements, 4C information, further patent reveals, AKD2000 coming out of engineering and heading to TSMC, the majority of the EAP's moving to commercial deals predicted by Peter van der Made so lots of expectations to be valued.

Are all these worth another 10 cents, 20 cents, 50 cents or $1.00 on the price of $1.50. I will have to cop out and say I have really no idea but how does the present price of $2.00 sound? To our German investor friends $2.45 sounded about right. To me it does not sound like they have paid over the odds for a piece of the 4th Industrial Revolution particularly given the Mercedes and possible VW stories.

The good thing though is as a long term investor it is all very academic as when I sell the true value of Brainchip will be in play as it will by then be an established company with earnings and all the other stuff that monosyllabic investment advisors understand.

My anonymous opinion only DYOR
FF

AKIDA BALLISTA