Why BrainChip Stock Should Be Avoided
Table of contents
If the definition of insanity is doing the same thing repeatedly and expecting different results, then the same can be said for investors who repeatedly invest in stocks that have more red flags than a Chinese military parade. The biggest giveaway is the gaggle of prophets that come around letting you know what great opportunity you’re missing out on.
Just over a year ago, we published a piece titled “Neuromorphic Computing Rethinks AI Chip Design,” which included mention of an Australian company called BrainChip (BRN:AU) which claims to have built a groundbreaking artificial intelligence (AI) chip called a neuromorphic processor.
Over the past few months, BRN shares have been soaring for no reason whatsoever. Regulators of the exchange which the stock trades on – the Australian Securities Exchange (ASX) – inquired as to why, and BrainChip said there was no substantial reason for the price increase. (This isn’t the first time that regulators have inquired about unexplained price movements.)
In the past few weeks, some individuals have been commenting on our past article about how BrainChip might get acquired. This is usually a telltale sign of a stock being promoted. The believers who tout this stuff aren’t necessarily acting maliciously. They’ve drunk the Kool-Aid, and now they’re doing the same thing promoters do. All you need to do is read the tea leaves.
Wallstreetbets and ASX_Bets
Now that trading stocks is practically free, everyone has decided to become a “day trader.” The epitome of this today is Robinhood, a platform that lets anyone trade for free and engage in extremely risky behavior. It’s largely become a casino driven by a large group of individuals who cheerlead this sort of behavior.
Over the years, stock promoters have migrated from Yahoo Finance message boards, to Investors Hub, to Reddit. The most infamous example of the latter is a subreddit called /r/wallstreetbets, where people gamble away their life savings on complete garbage. In one example, a “trader” woke up with $110,000 in their account and couldn’t explain how it got there. One can imagine how many people lose all their money not knowing how. There’s also a subreddit called /r/ASX_Bets which calls itself “an Australian equivalent to /r/Wallstreetbets.”
As we expected, BRN is a popular topic on ASX_Bets these days. It’s a complete mess of posts that show just how many people are dabbling in this stock without the faintest understanding of what they’re doing. Plenty of memes are posted mocking the bag holders. From three days ago:
The above meme mocks someone who believes in BrainChip’s latest technological manifestation, the Akida neuromorphic system, yet can’t understand why his investment didn’t hit some arbitrary share price target. The same people who say “hold with diamond hands” turn around and mock those that do.
It epitomizes what these forums are about, and it also highlights the inability for BrainChip to achieve any meaningful traction, despite numerous press releases being made over the years suggesting otherwise.
Boulevard of Broken Dreams
When a company makes lots of promises, look at their track record of delivering on previous promises. An inability to execute in the past is a clear indicator that the same can be expected of the future.
Going back four years from now, past filings for BrainChip show some big red flags. In summer of 2016, we see a “research report” issued by Foster Stockbroking which talks about how much potential BrainChip has. It prominently states, “Foster Stockbroking is engaged by BRN to provide corporate services for which it has earned fees and continues to do so.” We recently warned our readers to avoid any stock that is being recommended by a firm that is being compensated – directly or indirectly. Says the Foster Stockbroking report:
We expect an announcement around an initial licensing deal sometime in 2016, which should be a major share price catalyst.
Credit: Foster Stockbroking
This is one of many expectations that you’ll see which never come to fruition. Here’s an example taken verbatim from a company press release filed with the ASX the same year:
- Sept 2016 – BrainChip to roll out game protection technology at major Las Vegas casino following successful completion trial. The roll out will deliver an immediate and growing revenue stream to BrainChip.
With revenues of $13,397 USD for the first half of this year, nothing apparently came of the above announcement. Ditto for the below statement made in October of 2016.
At this juncture, we have commercial engagements, trials, and meaningful discussions with large casino operators, airports, schools, natural resource providers, and traffic control providers amongst others.
Credit: BrainChip
In 2017, the press releases continue:
- Apr 2017 – BrainChip, Inc. Announces Engagement in Civil Surveillance Trial with the French National Police Department of Toulouse
- Jan 2017 – BrainChip Announces Deployment of Game Outcome Solution at Mohegan Sun Casino
- Jun 2017 – BrainChip Holdings Ltd. and Safran collaborate on development of machine vision inspection system for harnesses production activities
- Oct 2017 – BrainChip Ships First BrainChip Accelerator To a Major European Car maker for Evaluation in ADAS and AV Systems
- Oct 2017 – BrainChip to Provide Artificial Intelligence Video Analytics for a Large-Scale Municipal Project
We’ve cherry-picked a few of the many press releases made in 2017. There are plenty, and at least a few announced new products that don’t appear to have been sold yet. In 2018, the press releases continue, but we’ve seen enough.
Progress by Press Release
Four years later, and all those engagements, trials, and discussions have resulted in no meaningful revenues. The superfluous press releases continue to this day. Last month, BrainChip announced a partnership with a startup called Magik Eye. At least they’re honest enough to include the below statement:
This partnership is for one year and can be extended by mutual consent of the parties. It starts with joint marketing services to promote compatibility that could lead to customers for each company. The agreement does not define any material conditions that need to be satisfied by either company.
Credit: BrainChip
It’s a big nothing sandwich. So is a press release this month titled “BrainChip Announces India Software Development Center.” Says the press release:
The new entity is not expected to add incremental expenses to the Company’s historical cash outflows as the staff have served the Company as contracted services providers for several quarters and the Company has provided funds for the facility and cost of equipment.
Credit: BrainChip
So the big announcement is that they’ll continue to use some Indian contractors they’ve been using. (Rolls eyes.)
When a company issues non-substantial press releases non-stop while the FOMO traders on Reddit tout them as the next coming of Christ, it’s just the same old story we’ve seen time and time again. This is a company with no meaningful revenues and non-stop glimmers of hope. They’ve been trying to validate their technology for at least four years now. In the meantime, all kinds of morons on Reddit are pumping and dumping shares, treating the entire thing like a casino. It’s an absolute mess.
To all the people who think they can come around here and say things like, “I think it would make a lot of sense for NVIDIA to buy BrainChip,” take your shite posting somewhere else. Plenty of well-meaning retail investors who don’t understand all the pitfalls out there might actually take you seriously, and that’s why we’re calling this out for what it is.
BrainChip’s Warning
In looking through the dozens of regulatory filings being made by BrainChip, they appear to be responding to regulatory inquiries in a timely fashion. In recent cases, they put in place caveats that explain no guarantee of revenues is given with their partnership press releases.
Back in 2016, an extremely favorable article was posted by the Australian Financial Review which resulted in the share price increasing such that trading was halted. BrainChip responded with a letter explaining that the article made all kinds of false statements about their potential. While the letter talks up all their “opportunities,” it clearly states, “there is no guarantee the trial deployments will result in material commercial arrangements.” That’s for sure.
Companies like BrainChip understandably support their operations by continuing to issue shares which dilutes existing shareholders. Today, the company has a market cap of over $400 million USD with over 1.5 billion shares outstanding. One of their many share sale prospectuses clearly spells out the risk of the company not being able to secure technology partners – ones that give them money that is.
As we’ve said before, it doesn’t really matter if the management team is well-intentioned or not. The outcome is still the same for investors who ignore red flags and choose to “invest” in companies that can’t manage to validate their technology through meaningful revenue streams and eventually run out of steam.
Conclusion
So far, an investment in BrainChip shares has been an investment in lots of promise and little substance. As for the recent share price surge, if you want to speculate, go to Vegas. You’ll enjoy losing your money there a whole lot more. If you really want to invest in AI chips, have a look at NVIDIA or Synopsys.
As for anyone who thinks about trying to play the short game, think twice. The irrationality of the YOLO herd will far exceed your margin limits. Ignore this noise and focus on companies with traction. Promising press releases and 5 AUD won’t get you a cup of coffee at Gloria Jean’s these days.
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Funny you left out BRN collaboration with Vorago Technologies, a NASA contractor. BRN’s Akida neuromorphic processor is uniquely suited for spaceflight and aerospace applications. If I had the time I’d educate you on BRNs latest progress. however I could spot a hit piece that is being spewed in this publication. Like you quoted”cherry pick”
Btw the BRN and Vorago Technologies collaboration was from Business Wire, a Warren Buffet business journal.
Vorago has a handful of employees and has never made a profit in it’s 16 year existence. It is NOT a NASA contractor. It is merely the recipient of some minor government grants.
We probably left out half a dozen collaborations, none of which have resulted in meaningful revenues.
Not sure what you mean by a “hit piece.” We never short anything. You’d be a fool to short such irrationality.
We don’t need to be educated about all the potential this technology has, we want proof in the form of meaningful revenues. We’d love to be proven wrong so current investors don’t turn into bag holders, which is what usually happens with companies that never achieve meaningful revenues.
And yes, there are business journals owned by prominent people that issue news about companies.
“ We probably left out half a dozen collaborations, none of which have resulted in meaningful revenues.”
Let me educate you in earnings vs value. Brain chip holding is a growth company with a $500M MC and a meager earnings report, which will increase inevitably. The Akida processor was just validated and now TSMC is producing 700M Akida processors for market ahead of Intel and IBM.
Tesla made Elon Musk a billionaire but for 15 yen Tesla never made a profit.
Brianchip Holdings and your unmentioned collaborators are global entities, and have made the efforts to move forward toward meaningful revenues to slice out a piece of a $70B sector.
Growth companies have revenues. Nobody said anything about earnings. Did you read the piece?
Investors are tired of waiting for meaningful revenues. This company continues to make progress by press release and should be avoided in favor of companies with actual revenue growth – growth companies.
Complete rubbish There are NO confirmed orders for Akida chips. In fact TSMC won’t even be starting the process towards manufacturing until Q1 2021. There will be no commercial chips until at least 2022.
“The biggest giveaway is the gaggle of prophets that come around letting you know what great opportunity you’re missing out on.”
Nanalyze traffics among “gaggles of prophets”, perhaps if you read up on experts of AI neural processors and their analysis of the market share and competitive challenges that David(BRN) vs the tech Goliaths, then perhaps BRN should be embraced and not avoided. Pleas read this article, their point of view concurs with most studies in the sector. I hope that are exchanged is educational and not vitriol.
The articles praising Brainchip are just paid advertisements in bogus ‘research’ reports. They have zero credibility.
Sorry for the last link and grammar but here what’s was supposed to be sent:
If investors are tired of eating for meaningful revenues, then they shouldn’t be in the stock market. Growth company’s take years to reach its stride, and rule # 1 is you only in what you can afford to loose. BRN isn’t exactly a slow mover either. After the 1500% jump because profiteers thought a unicorn landed to fly them up to air that Bezos breathes the SP was corrected and it’s Akida Nsoc is being used in its EAP while 700 million chipsets are being produced by TSMC for market. I won’t be waiting around for meaningful revenue for long. While the end users around the world have validated the Akida chipset and are being produced, the Goliaths ate either acquiring smaller Ai firms(Nividia & Arms), the rest are still being tested and to find out that Akida chipset is 100 times faster than IBM and Intel neural processors. BRN have already signed licensing agreements with several fortune 500 companies and will be announced as soon as the ink dries. This end my argument why BRN shouldn’t be avoided, rather start accumulating wile it’s pennies to the dollar.
Unfortunately, we do not allow links in the comment section.
People invest to preserve wealth, not destroy it. Only take into a casino what you can afford to lose.
Nothing you’ve said addresses any of the points of contention we’ve raised. You simply parrot what the company says – keep waiting.
Fortunately, the vast majority of investors will be smart enough to see through this.
Appreciate the dialog Glenn. We can agree to disagree, and time will tell.
I just subscribed to Nanalyze because of your disruptive and irrelevant stave on hyped stocks to inform the less informed of the daily shenanigans of shady corporations. I copied and paste this passage from an article, my version is disruptive behavior, as lame as it may be I’ll work on it to meet your standards.
BrainChip and Socionext Sign a Definitive Agreement to Develop the Akida™ Neuromorphic System-on-Chip
Company Secures Funding for Product Development
Significant customer interest in BrainChip’s ground breaking SNN Technology.
#invest BRN
Just taking up your challenge of being wrong. Cheers
I think all this argument about investing or not investing in BRN is stupid. All new technologies have to start somewhere and generally they will take a lot longer to develop than management and shareholders want or expect. The reality with BRN is that it has made a lot of promises over time, some of which haven’t materialised or took a lot longer than expected. However, they do seem to be at an inflection point now whereby the promise is backed up by some real developments that are likely to lead to revenue in the medium term.
Ultimately it is each investors decision as to when, or if, to jump in to an investment like this. Early investors who are willing to take the risk MAY be rewarded with amazing returns. Others, like Nanalyse may want to wait until the technology is more proven and revenues are in the bag. If you look at NVIDIA, a stock you recommend, it was on a slow burn for years before it rose exponentially over the last few years. If someone told you to buy NVIDIA five years ago you’d probably have said the same thing then that you’re saying about BRN now. And you’d have potentially missed out on USD $400 worth of share price growth.
Personally, I’m willing to risk some of my capital to ‘bet’ on BRN given the recent chip development, EAP collaborations, and the quality of the people they’re signing onto the Board and advisory panel. These people aren’t stupid and obviously like what they see.
Regarding your first paragraph, broken promises are a trademark of poor business leadership – an inability to execute. This is inexcusable. So we’re at a mythical inflection point where suddenly management starts keeping their promises?
Anyone who uses the term “amazing returns” loses credibility in our eyes. And no, we did not “recommend NVIDIA,” we don’t recommend stocks here. We simply point out investments we’ve made ourselves or provide alternative names to invest in, almost always companies with meaningful revenues – traction.
We don’t “bet” on companies, we invest in them. Speculation belongs in casinos.
Thank you for the comment.
$45M reasons not to avoid BRN. Why would LDA Capital a multi billion dollar investment group amend a $29M put option to $45M to BRN? Maybe they read IHUB and LDA’s team of analysts were steered by all the comments to invest on unreliable concern. I think they spent a great deal of time researching BRN’s EAP customers, the deliverables, and the capabilities of a company that will make their ROI money in the bank and not a roll of the dice! CHECKMATE!
Your comment fails to address our points of contention. Any investor with the slightest bit of common sense would avoid this thing like the plague. Fortunately, we’re able to warn retail investors who may not understand the risks they’re taking by dabbling in BRN.
“The biggest giveaway is the gaggle of prophets that come around letting you know what great opportunity you’re missing out on.”
What are your thoughts now that BrainChip capped off the year with an intellectual property (IP) licensing agreement with Renesas Electronics America?
Exactly the same as stated in the above article.
Why the BrainChip (ASX:BRN) share price is rocketing 27% higher today
Investors have been buying the company’s shares after it announced the start of volume manufacturing of its Akida AKD1000 neuromorphic processor chip for edge AI devices.
According to the release, the engineering layout for BrainChip’s high-performance, ultra-low power chip was designed in partnership with Socionext. It is a developer of advanced System-on-Chip (SoC) solutions.
The price is rocketing because it’s a volatile stock. Let us know when the meaningful revenues start coming.
dammit kept an eye on this for years, was about to buy 5k when it was 3 cents a couple months before the ridiculous 1 billion market cap exploded. way over valued in my opinion, may likely crash to reality again, with potential rebuy again for future dev
Jumping in and out of a stock that’s being towed around by the hype train is speculating, not investing.
BRCHF…. I know Penny that Stocks have many hurdles to overcome, one being testing the device which takes time! With NASA for instance, there aren’t many launches going on, so testing will take time, especially when they have a successful system taking place! What they have to do with NASA, is wait for the next experimental Aircraft that enters the scene, where the AKIDA can be introduced.
Then, I look at it this way? A Company who starts manufacturing the AKIDA, especially a Penny Stock Company with limited funds, is a good sign that some Company, maybe more than one, are waiting eagerly at the end of the manufacturing Rainbow, to put this device into a system of theirs? Makes no sense whatsoever to manufacture something that has no IMMEDIATE use! The first Batch is due for completion somewhere around the August timeframe, so maybe we will all hear something from the Kingpins soon thereafter, maybe September or October of ’21?
Yes, penny stocks have many hurdles to overcome, mainly the fact that 99% of them approach zero given enough time.
Many people spend lots of time trying to convince themselves that pre-revenue companies will eventually get there which is why we don’t invest pre-revenue.
Mark your calendar for Sep/Oct of 2021, just remember that the only real sign of traction is meaningful revenues ($10 mill or more USD in a single year).
First batch of Akida1000 has been received by Socionext from TSMC and sent to Brainchip. This batch will then head out to potential clients and EAP’s. This is game-changing technology for the AI edge space. This article will not age well… Bring out the popcorn.
Still no meaningful revenues then? Thanks for the update.
As I’ve inferred, watch this space and time will certainly tell. If you lack the acumen for foresight and knowledge of the potential, that’s your inability and failure. “Fortune favours the bold”. The thesis with Brainchip is convincing. Im quite sanguine that you’ll be left wanting as your ignorance is astounding…. The coin has been tossed! Let’s sit back and see who has the last laugh. Bring it on!
We have a long successful track record of calling out stories that never go anywhere. The fact that we’re risk averse tech investors in a world of Robinhood-gung-ho-YOLO-FOMO weekday warriors spending their stimmy checks makes us stand out from the herd. Whenever Brainchip shows meaningful revenues, we’ll take another look. We have no dog in the race and about a million other interesting things to research and write about. Only one article out of several thousand we’ve written is about Brainchip, and something tells us there probably won’t be another.
The opportunity lies in low-power, event-driven neuromorphic hardware, yet, instead of Brainchip, you recommend companies who don’t even have comparable technology. There is something to be said about being first to market – Brainchip looks to be winning that race with a user-validated product.
It’s this sort of babble that poses a dilemma. Your comment adds little value to the conversation. You completely ignore all the problems we raised, make an accusation which is entirely false, and then start talking about winning races. So, we should delete your comment. On the other hand, it’s this sort of response that helps prove what we concluded. These sort of comments ALWAYS accompany a stock that’s being manipulated. So, we’ll leave your comment so everyone else can see it.
Ever heard of a metaphor? How about understand an industry before you go about “nanalyzing” (wtf?) it. Please, by all means, delete my comment. I don’t want any public evidence that I visited this asinine site. Good luck in your misguided endeavors!
It’s quality commentary like this we won’t be deleting because it speaks for itself.
Do you have any more gems of wisdom you’d like to drop, or are you all out of material now?
Get ready. I can’t wait to wipe the smirk off your face. Your credibility within this space will be severely undermined. Maybe shutdown this incompetent and arrogant web page once Brainchip delivers
Hey Hoa, good chatting with you man!
Hoa chatted us up after leaving this comment and we actually had some good banter. He pointed out that our comments sounded arrogant. He’s right, they do. One reason for that is we run very lean on resources. You’ll notice a lot of the comments coming at us aren’t that nice. One way to thwart that is by quickly and succinctly getting to the point which – in some cases – certainly sounds arrogant.
It’s interesting how once you put some personalization around a conversation, everyone behaves more civil. Hoa’s comment here could have triggered a nerve no doubt. Likewise, our comments triggered a nerve for him to leave his comment. When we both had a chat, we both ended up complimenting each other, and there’s no hard feelings. It’s a great reminder that we’re all after the same thing – to maximize the returns on our capital. We all put our pants on one leg at a time, and we would all probably gel quite well over a few suds. As we said to Glenn above, we can agree to disagree. Thank you for reaching out Hoa!
BrainChip Receives Akida Chips from Socionext America
Cheers Farzam. We trimmed your comment as readers can look up the press release for themselves. It’s pretty self explanatory – BrainChip has some chips. That means meaningful revenues should be just around the corner, right? When that happens, do let us know.
Brainchip +20% on licensing deal with MegaChip.
The four-year agreement with Japan-based MegaChips and BrainChip will give MegaChips an intellectual property license for use in designing and manufacturing BrainChip’s Akida tech into external customer’s system on chip designs.
In exchange, BrainChip will receive an upfront license fee and additional payments over the term of the agreement.
On top of this, it will be eligible to receive additional compensation based on engineering efforts, software support fees and royalties associated with MegaChip’s customer engagements.
By partnering with BrainChip, MegaChips said it will be able to supply the automotive, camera, gaming and industrial robotics markets.
Another licensing deal? You’re joking. How long will investors have to wait before they see meaningful revenues? It’s starting to become embarrassing. Maybe they can’t sell anything because they don’t have a product that people want to buy. That or they’re spending all their time writing press releases.
Mercedes-Benz have announced Brainchip’s Akida chips will be in their concept EV (Electric Vehicle) the Mercedes-Benz Vision EQXX.
Brainchip announces something every seven seconds. Let us know when they have meaningful revenues.
Well this didn’t age well did it. A little embarrassing for you guys
You’ll need to elaborate on your sarcastic comment. They had $383,770 last quarter. You couldn’t buy a studio apartment in California for that. Aside from the share price appearing to be pumped – again – absolutely nothing has changed here. Avoid like the plague.
At least we know that your consistent. Consistently full of shit. Measuring an R&D company that’s just started its Commercialization phase, on its balance sheet is insanity.
If we took your approach on every stock we’d never invest in the first place. It’s called risk.
When people such as yourself make comments like this, we don’t even need to respond because you’ve already proven you have nothing of value to add to the conversation.
We do not invest in companies that have no meaningful revenues. Period. That simple rule helps investors avoid countless land mines – “teams with dreams.” And yes, we consistently apply that rule. Brainchip needs to achieve $10 million USD per annum before we take another look at the stock. It should be really easy because they’ve been promising that revenues are right around the corner for years now. Have you read all their press releases about partnerships? When will investors see meaningful revenues? You should be asking that question to the company instead of telling people they’re full of cow manure for having saved countless investors from investing in duds over the years.
We’re not funding someone’s R&D growth story. That’s what VCs do, and their success record is atrocious, even though they do that for a living.
Try and add something to a conversation instead of just stonewalling someone because you don’t want to take the time to properly articulate your thoughts.
Mercedes announced the akida chip is being used, not Brainchip.
If I waited on meaningful revenue, I wouldn’t be able to afford to buy which is why I researched
Brainchip years ago and I’m now up around $100,000.
We don’t buy companies unless they have meaningful revenue. Period. Short term price movements of a stock that’s clearly being manipulated by cheerleaders mean absolutely nothing. Everyone’s an armchair millionaire on the Internet.
This is such a terrible article! Are you trying to deter investors from grabbing share of a great company?
I don’t understand this absolutely appalling journalism… It’s laughable. You obviously have a hidden agender Nanalyze.
What I want to know is: Do you actually believe the crap you right?
Ahh the age of horrible journalism and fabricated stories… What a time to be alive!
What’s a “hidden agender?” If it’s a horrible article then don’t read it. Clearly, it was worth the time for you to puke out an inarticulate response that adds no value to the conversation.
Well, aren’t I lucky I didn’t take your advice.
Mercedes Benz is using Akida chip in their new cars.
MegaChips bought their IP
Renesas bought their IP.
All this since your article was published. Well researched paper LOL Time to find another job ”nanalyze”
Just like the name – your analysis is ”nano” indeed.
Nanoanalyze LOL
Nobody bought anything until there are revenues to prove it. More revenues, less press releases. The constant streams of press releases need to be replaces by constant streams of revenues.
All these cheerleaders coming around to leave vapid “attack the messenger” comments such as this one prove that the stock is being manipulated. So thank you for taking the time to support our thesis.
Nanalyze, your vitriol towards BrainChip sounds awfully personal. I sincerely hope that no one has listened to your investment advice. The 4 year delay between announcing a partership with a major OEM, and this weeks announcement by Mercedes that Akida has been used in their new concept car sounds just about right from a developmental timeframe. Pity you did not take the time to understand a little more of what you write about. Mercedes are merely the tip of the iceberg…
Stating facts isn’t vitriol. We have over 2,600 articles, one of which is about Brainchip. If you don’t like it, don’t read it, and definitely don’t take the time to leave a comment. But you did, and a comment that adds no value whatsoever. A press release announcing a chip then four years of nothing – then yet another of many press releases about someone who they hope will give them revenues in the future? There are no meaningful revenues. Let us know when these happen and we’ll take another look at the company. Thanks.
Nanalyze will Buy Brainchip when revenues start to flow.
$15/share
Still a Bargain though.
Take the cheerleading somewhere else.
businesswire: “2021 also saw the introduction of MetaTF™, a versatile ML framework that works within TensorFlow™1, which allows people working in the convolutional neural network space to seamlessly transition to neuromorphic computing quickly and easily without having to learn anything new. The MetaTF development environment is an easy-to-use machine learning framework for the creation, training and testing of neural networks, supporting the development of systems for Edge AI on BrainChip’s Akida AKD1000 event domain neural processor. Over 4,500 potential customers have started to use MetaTF in 2021 alone.”
Customers? Like people who pay money for something? So we should expect meaningful revenues soon. Awesome! Let us know when that happens. We’re all getting sick and tired of science by press release.
So HY2022 BrainChip has $4.8 million in revenue. Time to take another look at it now that it’s near the “$10 million USD per annum” benchmark stated several times in this comment section? This isn’t a “haha u were wrong” comment, I appreciate that not putting money into companies without revenues is just principled investing (especially when they have a history of disappointments), but surely the situation has changed, now. Maybe the speculators were right about the future prospects of this company, despite the previous disappointments.
We’ll look into it when revenues exceed $10 million USD per annum. That’s the rule. That’s how we approach tech investing. Speculators are speculators, they are not investors.
That sort of comment just seems ideological at this point. Your $10 million mark seems arbitrary, BrainChip are so close to that mark. Yes, we know speculators aren’t investors, your continued insistence of this just seems like a cope. While those “speculators” get in early and make a profit when the expected revenues come, you’re left decrying “Speculating is not investing! Speculating is not investing!”. The most money is made from getting in early, and that requires serious analysis and foresight into what the future may be. Judge BrainChip on an assessment of that future, instead of doubling down on “Nope the revenues aren’t yet high enough!”.
We’ll put this in perspective Mr. Cheerleader, because that’s how you’re coming across now. Like a used car salesman who is desperately peddling some story to the masses for whatever reason instead of a professional investor who follows a methodology. We have published 2,200 research pieces covering more than 430 stocks. One of those pieces is about your sacred cow. We get it. We heard the bull story. Right now we’re looking at a firm that is ludicrously overpriced. Our simple valuation ratio sits at (1,050 / 9.68 = 108) which is extremely high. Even if this firm hit $10 million in annual revenues, we wouldn’t touch it with a ten foot pole at that valuation, or even half that valuation. Take your “get in early” bullshit over to Reddit or get shown the door. Got it?
I suppose I’ve been “shown the door” as it were, seeing that my previous reply to this comment has been deleted.
Probably safe to assume that if you weren’t adding value with your commentary then it was deleted.
It is interesting to look how Brainchip performs in the current very difficult stock market environment where so many high quality shares lost most of their value in the last year or two.
Current Brainchip share price: $0.67. 1 year ago it was $0.47, 2 years ago it was $0.35, 3 years ago it was $0.046.
That’s a gain of +1,356% in 3 years. So Brainchip shares have hugely impressive performance.
Companies being hyped by cheerleaders tend to disconnect from the broader market movements. Until they can show meaningful revenues there’s nothing to see here. Long term investors always end up being bag holders when companies fail to monetize a product over time and dilute themselves into oblivion.