the pdf is from the gulf time september 30, 2020the article...

the pdf is from the gulf time september 30, 2020
the article title was 'Penny stock’s 1,500% jumpfuelledbyReddit leftCEOdumbfounded'

the article......
A meteoric rally in an Australian penny stock is fast unravelling after confounding not just market watchers but also
the company’s CEO. BrainChip Holdings Ltd., an artificial intelligence-focused startup whose flagship product
is yet to be made widely available for commercial use, saw its 2020 gains propel to 1,500% earlier this month.
While concerns about overheating have seen the stock getting hammered since, its current year-to-date advance of
almost 700% still makes for one of the best performances among technology names in Asia Pacific, according to data
compiled by Bloomberg. “I was surprised about the peak,” Louis DiNardo, BrainChip’s chief executive officer, said in an interview.“Shares
were overboughtfor a company that’s just introducing its product.”
BrainChip is one in a long list of globaltechnology stocks that have surged this year as the pandemic put investor spotlight on companies focused on
technological innovation. The firm is developing a processor, Akida, that can be used for edge computing — which involves
handling complex AI and machine-learning tasks at the socalled edge of the network instead of sending data back
and forth to servers. Shares have skyrocketed as the company signed a slew of partnerships over the past few months, including an agreement with Ford Motor Co. in May for the evaluation of the Akida chip. Texas-based Vorago Technologies this month agreed to participate in its “early access program” which allows select few to test new features and give feedback before a device is rolled out to customers as a whole.
Jun Bei Liu, a portfolio manager at Tribeca Investment Partners Pty in Sydney, isn’t surprised by the sharp correction in the share price, which
she says reached astronomical levels after retail investors hyped the stock on online forums such as Reddit. Brainchip has seen multiple
discussion threads on company’s business outlook and stock moves over the past few months on the Reddit website.
“Yoloed into it cause of a comment I saw here a few weeks ago and now it’s up 36%
today. Thank you for the DD kind stranger,” wrote one of the users on Reddit some three months ago.
BrainChip generated $13,397 in revenues in the six months ended June 30, versus $66,635 for the same period in 2019, according to its website. The stock slumped as much as 10.5%onTuesday, before finishing 8.6%lower at its weakest closing level since Sept. 1. Volume surged to about 139% of its three-month average. BrainChip’s processor can be used in applications for homes, transportation, health and the industrial sector, DiNardo said.