Brn - brainchip holdings

[moka]

This interview is two months old, but I haven’t been following Brainchip news closely lately so it was new for me.

https://www.youtube.com/watch?v=-U28yKbTVP4

Executive Series 25 May 22: Brainchip Holdings (BRN) CEO, Sean Hehir

2 min CEO Sean Hehir “The technology is transformative. It can do things nothing else can do. The thing about neuromorphic, the thing that caught my attention, is to get more output for the same amount of input. Which is really transformative, that is what we are really looking for in everything in life.”

6 min – Interviewer “You have got an extraordinary capitalization, just over $2bn, but the revenue, profitability, when is that taking place in your thinking.”

Hehir “I was asked do I think the market cap is fair. I think it is not even close to being topped out. The reason I say that is the market is very, very big, so we have got a lot of room to grow. So I think the market cap is not even close to what it can and should be over time.

We’ve established six very important partnerships. We are going to establish more and make them deeper to drive a lot of value. (6 partnerships = ARM, RENESAS, PROPHESEE, MEGACHIPS, VALEO and SIFIVE)
We’ve spent a lot of energy cleaning up our marketing message, a whole new brand.

At AGM in May I talked about activity. Activity is great. I look forward to next year and talk about results. I am here to build a large sustainable multi-national company. This industry is still young. I’ve been in technology long enough (30 years) to know that leaders will emerge and become the defacto standard. I want this company to be the defacto standard for edge AI for the entire world. So that means dominant market share, ecosystem partners building around us. That is a pretty lofty goal but I think we can get there. What we have is unique. We worked really, really hard on our patent portfolio. That’s a critical lynch pin.”

[moka]

Closed today at $1.025, down 6c on $16.7m

https://stocknessmonster.com/announcements/brn.asx-2A1388084/

Top 20 Shareholder Report out today. Founder Peter van der Made is no longer the top holder. He still has 9.120% (9.351% on the previous announcement on 04/02/22.)

Biggest holder is now CITICORP NOMINEES PTY LIMITED with 10.028%.

BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM - 4.330% (previously 3.757%.) Clearstream holds the shares that trade in Germany and Europe. Lots of interest in Brainchip in Germany. So these shares are no longer trading on the ASX.

LDA CAPITAL LIMITED not on the list, they had 0.583% previously.

Link to the last Top 20 Shareholder report on 04/02/22 below.
https://stocknessmonster.com/announc...asx-2A1352918/

I was wondering who holds some of the shares that trade in the US and some are held by CITICORP NOMINEES PTY LIMITED - 172,420,369 10.028%. One of the largest holdings in that account now is the ADR account held by Bank of NY Mellon with nearly 24M shares in it. Clearstream holds 74m shares. So at least 100m shares trading on markets other than ASX = 5.8%. Total Securities: 1,719,362,144.

[moka]

HALF-YEAR FINANCIAL REPORT to 30 June 2022 out today and looking good with revenue of $4.8m, which is a pleasant surprise.

Quarterly reports are reported as cash received, while the half yearly reports revenue as accrued income i.e. it has been invoiced, and the cash which has not been received appears in the balance sheet as receivables.

March Quarter Cash Receipts from customers were US$0.2M
June Quarter Cash Receipts from customers for the quarter were US$1.2M.
So cash receipts for half year = $1.4m, but revenue (including receivables) is $4.8m.

https://stocknessmonster.com/announc...asx-2A1392787/
HALF-YEAR FINANCIAL REPORT to 30 June 2022

Revenues for the half-year ended 30 June 2022 of $4,831,081 increased 529% from $767,545 in the same period a year ago. The increase in revenue is a result of the partnership with MegaChips and predominantly comprised licensing revenues of Akida 1000 recognised in the current period.

Receipts from customers 1,434,653 1,314,862

Trade receivables 2,503,670 98,136
Research tax credits 1,033,137 774,830
Other receivables 13,570 36,439
Total 3,550,377 909,405

Cash receipts $1,434,653 plus Total Receivables $3,550,377 = $4,985,030 which is close enough to $4.8m revenue.

Most of the revenue is from IP = license fees not chip sales.

REVENUE FROM CONTRACTS WITH CUSTOMERS
………………………………………………….............…..30 June 2022 ….30 June 2021
………………………………………………………................…..US$ …………..US$
(a) Types of goods or service
Product revenue ……………………………….....…........218,575 …………..52,005
License revenue……………………………….....…....…4,049,889 ….……..412,500
Development service revenue ……………........…..562,617 ………...303,040
Total revenue from contracts with customers 4,831,081 ……….767,545

[moka]

Quarterly report out and a disappointing result.

“Receipts from customers for the quarter were US$0.1M, a decrease of US$1.1M from Q2-22.
However, the current global technology market has created economic dynamics that have extended evaluations, decreased budgets, and delayed introduction of new technology. These conditions have created a headwind for our prospective and current customers. We anticipate these conditions to eventually calm. We remain positive on future market penetration and broad adoption of Brainchip’s technology.”

Appendix 4C and Quarterly Activities Report https://stocknessmonster.com/announcements/brn.asx-2A1409129/

Top 20 Shareholders - https://stocknessmonster.com/announc...asx-2A1409132/

[moka]

The revenue of $4.8m reported in the half yearly report consists mainly of licence fee payments by MegaChips with payment terms that go through to December 2023, so none of this revenue showed in the latest quarterly. There are also some R&D incentives and some are expected in the December quarter or March 2023 quarter. These show as trade receivables and research tax credits.

On Friday after the disappointing Quarterly report the share price fell to 67c, down 18c, 21.2% on $31m.

The sp has been drifting lower since September so some investors were aware that the global macro conditions could negatively impact the revenue.

With the sp fall BRN will no longer be in the ASX200 so this will push the price lower, as there is more selling. Some of the bigger investors believe that because BRN has no revenue the sp is overvalued and BRN should not be in the ASX200.

Those investors who focus on the potential and understand how transformative and disruptive BRN technology will be don’t think it is overvalued.

[moka]

Several Motley Fool articles recently with a negative slant.

https://www.fool.com.au/2022/10/17/w...short-sellers/
Warning: BrainChip shares are being targeted by short sellers
Short sellers have their eyes and money on BrainChip shares…
On 17^th October the shares were down to 87 cents.
This means that since the back end of July, the company’s shares have dropped over 31% from $1.27.
Data showed that short sellers had a rather ominous and devilish interest of 6.66%. That’s the equivalent of 116.4 million shares.

https://www.fool.com.au/2022/11/01/w...ue-in-october/
Why did the BrainChip share price lose a quarter of its value in October?
This meme stock was sold off in October… The majority of the weakness in the BrainChip share price came at the end of the month after the company released its quarterly update.

https://www.fool.com.au/2022/11/02/w...en-drop-today/
Why did the BrainChip share price pop then drop today?
The BrainChip share price finished the session on Wednesday back where it started at 65.5c. The tech share had a turbulent morning with a spike and fall in the share price shortly after open.
BrainChip issues 7.5 million new shares for employees. The share issue follows a horror month for the BrainChip share price.

https://stocktrack.com.au/asx/brn/me...rts-for-397087

Meme Stocks,miners top charts for Millennial buys.

A news article has been posted about Brainchip on the AFR. The article was published around 6 months ago, on 22 April 2022 at 5:55pm.
BrainChip was the most popular stock holding this year so far among customers of investing app Sharesies, edging out a string of lithium miners and blue chip ASX mainstays BHP and Rio Tinto.

[moka]

Brainchip as a short 7^th on the list of top stock picks.

https://www.livewiremarkets.com/wires/calcutta-2023-australia-s-brightest-investors-name-17-top-stocks-for-the-year-ahead

21st Oct, 22. Calcutta 2023: Australia's brightest investors name 17 top stocks for the year ahead
Top stock picks from the country's best fund managers for the next year.

1. Block Inc (ASX: SQ2)
2. Tabcorp (ASX: TAH)
3. Paladin Energy (ASX: PDN)
4. Virgin Money UK (ASX: VUK)
5. Webjet (ASX: WEB)
6. Janus Henderson Group (ASX: JHG)
7. (Short) Brainchip Holdings (ASX: BRN)

[moka]

I have sold most of my BRN shares. The chart is looking very bearish and the indicators are ugly. I regarded myself as a long-term holder having brought my first shares in 2016. Several times over those years I’ve seen how the sp gets pushed up and down to extremes, and I see that happening now. I believe the price will get pushed down to about 35c to 55c because of shorting, global macro factors, inflation, supply chain issues including manufacturers shutting down because of covid, global chip shortage, the chip war between the US and China etc.
I still love BRN and I will buy back in, hopefully at the bottom, but I’ve sold most in the last 3 days and taken profits. It will be a year or two before BRN has meaningful revenue, because the sales cycle is long about 12 – 24 months because evaluation is complex.

Mon closed at 64.5c down 2.5c on $14m. Tues closed at 65c on $9m. Wed/today 65c on $5m. I can see the bots pushing up the sp to 65c so the smart money can sell, and since I’m smart I also sold.

[RupertBear]

I have sold most of my BRN shares. The chart is looking very bearish and the indicators are ugly. I regarded myself as a long-term holder having brought my first shares in 2016. Several times over those years I’ve seen how the sp gets pushed up and down to extremes, and I see that happening now. I believe the price will get pushed down to about 35c to 55c because of shorting, global macro factors, inflation, supply chain issues including manufacturers shutting down because of covid, global chip shortage, the chip war between the US and China etc.
I still love BRN and I will buy back in, hopefully at the bottom, but I’ve sold most in the last 3 days and taken profits. It will be a year or two before BRN has meaningful revenue, because the sales cycle is long about 12 – 24 months because it is complex.

Mon closed at 64.5c down 2.5c on $14m. Tues closed at 65c on $9m. Wed/today 65c on $5m. I can see the bots pushing up the sp to 65c so the smart money can sell, and since I’m smart I also sold.

Thanks for all your helpful posts Moka and sharing that you have recently sold down, much appreciated

[Aotea]

I have sold most of my BRN shares. The chart is looking very bearish and the indicators are ugly. I regarded myself as a long-term holder having brought my first shares in 2016. Several times over those years I’ve seen how the sp gets pushed up and down to extremes, and I see that happening now. I believe the price will get pushed down to about 35c to 55c because of shorting, global macro factors, inflation, supply chain issues including manufacturers shutting down because of covid, global chip shortage, the chip war between the US and China etc.
I still love BRN and I will buy back in, hopefully at the bottom, but I’ve sold most in the last 3 days and taken profits. It will be a year or two before BRN has meaningful revenue, because the sales cycle is long about 12 – 24 months because it is complex.

Mon closed at 64.5c down 2.5c on $14m. Tues closed at 65c on $9m. Wed/today 65c on $5m. I can see the bots pushing up the sp to 65c so the smart money can sell, and since I’m smart I also sold.

Hi moka
Hard not to agree with you. If i wasnt free carried i would consider selling down too. If i sell, a takeover offer will be submitted the following week so holding tight and eternally hopeful.
Appreciate your input. Good luck..