BRN (ASX) Contrarian views

Originally posted by shareman: ↑

The recent events on HotCopper where BRN bulls were triggered into meltdown by a single article that raised some issues only serves to reinforce some of the views below.

As I have posted previously, for those who are brave enough to take ared pill:

- In my opinion, BRN is still a very high-risk play due to the fast-changing and ferociously competitive sector it operates in. It may well succeed (which would be great), but the chances are still reasonably low and they have their work cut out for them. If you would not bet the amount of money you have invested in BRN on a horse with a significant chance of failure, it might be wise to at least reflect on whether you may have invested more than you can afford to lose

- At this stage we just don’t know whether the Akida technology is mature and robust enough for it to be a commercial success, or whether it will end up as just a hobbyist’s toy. Only time will tell.

- There is enormous competition out there from all sorts of architectures. Despite what BRN bulls might try and convince you of, a competitor to Akida does NOT need to be another neuromorphic chip. It can be ANY architecture that satisfies the customer's needs.

- Many posters here seem to claim Akida will be placed in almost every product that exists and the only reason we have not heard about it is because it is subject to an NDA. Of course, this exact same logic could also be applied to every one of the many competitors to Akida that exist, and similarly it could be argued they have all entered into many agreements subject to an NDA too

- The reality is 99% of the times posters here have speculated that Akida might be involved in something, it will likely end up having been a competitor. The irony is the excitement generated by this speculation has helped to inflate the share price, where in reality it should actually be lowering it.

- The fact some posters here like to present BRN as having no competition, and get triggered when anyone mentions the “competitor” word, should be a big red flag

- In my view, BRN’s share price has been inflated, at least in part, by gullible and vulnerable people falling for the wild speculation posted on BrainChip Facebook groups, reddit, HC posts, telegram messages etc. In my opinion, this had resulted in significant FOMO which has manifested in the recent price action.

- The fact many BRN bulls were triggered into meltdown by a single news article that raised some issues re BRN, suggests to me:
1. posters here are far less confident in Akida than they let on;
2. contrary to what they claim, many posters here are not long term holders, as otherwise it is hard to see why they were so triggered by a single article! At the end of the day, if Akida is as good as they all claim, this article is totally irrelevant to the long term success of BRN which will be determined largely by the success of the technology itself. The fact so many posters were triggered, suggests many are in fact traders and feel the share price can only be propped up by suppressing or boycotting any view that does not support the "BRN will be worth 10x Microsoft" narrative.

Expand

I should add the following point to my original list (which I note was posted when the share price was $1.74):

- Many retail holders appear to like the sense of belonging they get from being part of the BRN meme stock community. This could well be one of the factors that has helped keep BRN's market cap propped up at a sky high valuation for so long.

No.	Vol.	Price($)
36	1478980	19.5¢

No.

Vol.

Price($)

1478980

19.5¢

Price($)	Vol.	No.
20.0¢	205644	4

Price($)

Vol.

No.

20.0¢

205644

No.	Vol.	Price($)
36	1478980	0.195
91	3162210	0.190
40	1818147	0.185
52	1594479	0.180
14	315063	0.175

No.

Vol.

Price($)

1478980

0.195

3162210

0.190

1818147

0.185

1594479

0.180

315063

0.175

Price($)	Vol.	No.
0.200	203371	3
0.205	510000	10
0.210	708273	11
0.215	440411	9
0.220	981768	29

Price($)

Vol.

No.

0.200

203371

0.205

510000

0.210

708273

0.215

440411

0.220

981768

(20min delay)
Last 20.0¢		Change -0.005(2.44%)		Mkt cap ! $371.1M

Open	High	Low	Value	Volume
20.5¢	21.0¢	19.5¢	$796.1K	3.947M

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