BRN

0.00%

23.0¢ brainchip holdings ltd

Brainchip Short Discussion, page-104

First 104 Last

Share
Profile

Follow
Kouchkoini

31 Posts.

60

15/09/23

19:55

Post #: 69880246
Share

Originally posted by mapp: ↑

Ok I think I am beginning to understand the shorting process.

Shorters borrowed shares from brokers for a fee. I understand the fee is around 18%pa. The shorters then sell the shares on market. At this stage both the original owner, who may be unaware of the transaction, and the shorter have a beneficial interest in the shares

In April 2022 the RBAstarted increasing interest rates.

Using BRN as anexample.

Lots of people, cashed up because of COVID and sick of 0% interest looked around and decided the share market was a good place to invest. Some where careful and decided to invest in index funds, others were more adventurous and followed momentum investing.

BRN was going up so it looked like a good bet. BRN greatlyincreased in price as a result of some good stories.

In January 2020BRN (Shorts 0.02%) was $0.05. In January 2021 BRN (Shorts 0.07%) was$0.50 as a result of some significant technical achievements. InJanuary 2022 BRN (Shorts 2.50%) spiked to $2.00 as a result ofglowing reports by Mercedes engineers.

In April 2022 the RBAstarted increasing interest rates.

Profit taking saw BRN (Shorts2.63%) fall to $1.00.

In 20 June 2022 BRN(Shorts 4.44%) was added to the S&P ASX 200 index. Index fundbuying push the price to $1.10 as the funds bought 100,000,000* BRNshares. (*guess anyone know the true figure).

Shorters engaged intactical selling that lowered BRN’s price. Many BRN holders whereaffected by the increase in interest rate and seeing a falling pricesold out. Investors interested in buying BRN decided not to catch afalling knife.

The tactical selling in effect was in shorters takingnew position selling to other shorters getting cover. The fall in BRNshare price neatly matching the increase in percentage shorted.

InAugust 2023 BRN (Shorts 8.20%) price fell to $0.27. The total numberof shorted shares was about 130,000,000.

20 Sept 2023 BRN(Shorts 7.3%) $0.30 was removed from the S&P ASC 200 index . Theindex funds needed to rebalance .

This is where themagic happens. I don’t understand. The index funds sell the shares,the shorters buy the shares to return to the lender. This cross trade happens off market. (Can someone explain how this works?)

The result being theindex funds have lost about $70,000,000 and the Shorters made$70,000,000 less costs.

The index fund managers don’t have to worryabout the loss because they are just following the index. Theinvestors in the index fund are none the wiser.

The whole processhas benefited me because I managed to top up @$0.28 and will hold andenjoy BRN’s progress.

Expand

Does anyone recall when BRN was first admitted into the ASX300? Was it the same as the ASX200?

BRN Price at posting: 29.5¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

NTI

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

CKA

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

BCI

BCI reaches close of funding facility for salt-first part of Mardie project

SLS

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

BUX

Buxton projects new graphite province discovery at WA Narryer play

WCN

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

There are more pages in this discussion • 542 more messages in this thread...

First 104 Last

Add BRN (ASX) to my watchlist

(20min delay)
Last 23.0¢		Change 0.000(0.00%)		Mkt cap ! $451.3M

Open	High	Low	Value	Volume
23.0¢	24.0¢	21.5¢	$2.863M	12.69M

Buyers (Bids)

No.	Vol.	Price($)
6	136498	23.0¢

Sellers (Offers)

Price($)	Vol.	No.
23.5¢	444756	13

View Market Depth

No.	Vol.	Price($)
5	116498	0.230
4	205000	0.225
23	689438	0.220
22	1098412	0.215
38	1026309	0.210

Price($)	Vol.	No.
0.235	444756	13
0.240	941937	20
0.245	612347	15
0.250	151787	5
0.255	132485	7

Last trade - 16.10pm 04/10/2024 (20 minute delay)

BRN (ASX) Chart

Brainchip Short Discussion, page-104

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

BCI reaches close of funding facility for salt-first part of Mardie project

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Buxton projects new graphite province discovery at WA Narryer play

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Brainchip Short Discussion, page-104

Top Stories

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

BCI reaches close of funding facility for salt-first part of Mardie project

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Buxton projects new graphite province discovery at WA Narryer play

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News