Brainchip Chart, page-21

Hi Folks

It's been a while Not going to post a chart tonight. It's still has to playing out.

As of today BRN market cap is 316m. If it stays that way it will no longer stay in the ASX300.

Those funds who deal with only ASX300 stocks or better will .cease buying trades on exclusion although will permit selling trades before and after that event.. I have seen it before.

As with what happened with being removed from the ASX200 (which affected those funds that deal with the ASX200 or better stock) will in all likelihood happen again. Without buyers from these funds some will exit their short positions, by buying which will have various consequences on the SP. With some sellers and some buyers its going to be volatile until this settle down especially in the period prior to their removal. Shorters closing out will be among the buyers also there will be some who if the price drops sufficiently will want to accumulate prior to exclusion in the fund long term for tax reasons. The sellers side will vary over the time prior the the removal and also afterwards. So its a balancing act.

It's complicated.

The rebalancing of the ASX300 happens in March so there still time for water to flow under the bridge. An increase in SP from 18 upwards significantly can stop the removal. Who knows?

I have seen some companies prosper once the shorters lose interest after a initial drop.

Perhaps a study of the charts of those companies that were removed in previous ASX300 rebalances could be worth a look. You will find that not all the stories in the charts are the same, it varies. Remember BRN was a functioning company before it became and ASX300 stock and then moved into the ASX200.

We shall see?

I just thought you should be aware of the possibilities and DYOR.

cheers Lies