Why BrainChip Stock Should Be Avoided

Australian company #BrainChip $BRN:AU claims to have built a groundbreaking #ArtificialIntelligence #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. 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. 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. Lots of promises, but did BRN stock deliver? Watch our video to find out.
You can read the original articles we used for this video here:
1. Why BrainChip Stock Should Be Avoided:
www.nanalyze.com/2020/09/brai...
2. Investing in Penny Stocks is For Dummies:
www.nanalyze.com/investing-pe...
ABOUT US:
This video is brought to you by Nanalyze, a boutique media and research firm founded by finance professionals with decades of experience. We share insights about #disruptivetechnology #investments in a language that is future-proof and easy to understand.
Read all the Nanalyze Premium articles you'd like for free! Sign up for a 30-day trial of our monthly subscription with no strings attached: www.nanalyze.com/become-a-nan...
DISCLAIMER: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, along with independently researching and verifying, any information contained within our KZbin videos or on our website, whether for the purpose of making an investment or otherwise.
#BrainChipStock #nanalyze

[@Nanalyze]

COMMENTS POLICY: People are expected to behave in a manner that enriches the conversation. Criticisms are strongly encouraged as long as they are presented in a civil manner. Any rude obnoxious attack-the-messenger rubbish will be given one warning. After that, comments will be removed and the individual who made them will be blocked.

[@estring123]

in 2 years this garbage will be $0.001. would be lower if asx allows lower prices.

[@joepiv]

@@estring123 We've presented our analysis and don't have any reason to spend any more time speculating as to where this company may or may not be in two years. If they achieve $10 million in revenues in a single year, we'll take another look, else we'll be getting back to analyzing all the great tech stocks out there that can actually execute.

[@BenBenBen4BenBen]

Thanks. Very good analysis. This short presentation indeed helps a lot of new investors to avoid pump-and-dumps.

[@Nanalyze]

Thank you for the positive feedback Ben! The number of critics coming out of the woodwork when we take a critical look at a stock is a good indicator if some "promotional activities" are happening.

[@u2b608]

I first criticized you for doom and gloomy outlook on companies you’ve researched. I can now appreciate the time and effort you’ve invested to give us a refreshing viewpoint that I, and others, have not seen. Thank you!!!

[@joepiv]

That's very nice of you to come back and let us know Bruce! You are correct that we do post a fair amount of negative content but that's because as risk averse investors we always look at all investments - even the ones we hold - with a critical eye. In the long run it helps us avoid land mines. Thank you for the kind words!

[@oliverbennett7610]

This really helps people who are just beginning to look at this company, put things into perspective. A common trend seems to be 'this is our year' while management is giving themselves bonuses and getting stock options. Great video.

[@Nanalyze]

Cheers for the positive feedback Oliver. When you've been playing the game for a while, certain patterns start to become very obvious.

[@GiftedToddler]

On point 1 - Brainchip Holdings Ltd was founded in 2004 and Brainchip Inc (US) in 2013. A simple check on ASIC should confirm Aziana Ltd did not pivot into Brainchip and neuromorphic computing. Your understanding of the company’s history is completely incorrect. Yes the public listing was in September 2015 via a backdoor ASX listing through Aziana Ltd. There are many reasons why companies may choose this method of listing I will not go into.

[@Nanalyze]

The video did not talk about when Brainchip was incorporated. Nobody cares. A mining company having a reverse merger with a neuromorphic computing is what the video talks about. So you completely ignore the several dozen failed promises over the years and focus on something absolutely pointless such as this? It says a lot about your motivations. Do you have anything to say about the dozens of blatant broken promises made over the years?

[@Nanalyze]

And our patience is growing thin with all the rubbish comments being made on this video. Attack the messenger garbage. You either add value to our audience of investors or get blocked . Simple.

[@joepiv]

And since you stubbornly want to start splitting hairs while ignoring literally 99% of the presentation's content, we'll ask you this. Why is it that they were still trying to sell that bauxite claim after the reverse merger? When you're trying to sell a bauxite claim while simultaneously pitching your neuromorphic computing greatness (that hasn't amounted to meaningful revenues for the past seven years), the often-used nomenclature for such a move (typically not one this ridiculous) is a pivot. Can't cut in the bauxite mining industry? PIVOT into neuromorphic computing. And if you don't like the use of the word, we could care less. And you're now blocked because you were being a persistent jerk about it.

[@neddel]

Hi, thanks for your work. I always want to hear both sides and for sure its not easy to get informations for both sides. What i'm missing here is arguments for or against the technology. It could be really a technical breakthrough. Why do you think it is not? Only from the technical part and not commercial. Second thing is the personnel part. They made some mistakes in the past. Hm yeah they have been a startup, i think a lot dif that. But in my opinion they developed.. Peter van der Made, Rob Telson, Anil Mankar or even Sean Hehir are well known and respected people in their business segment. Do you think they would waste their time on it, if its worthless? Im looking forward to your answer.

[@Nanalyze]

When it looks like a duck, walks like a duck, and acts like a duck, it's probably a duck. This is a boulevard of broken dreams that we want nothing to do with. When there are literally thousands of quality tech stocks out there doing incredible things, why would you waste your time trying to justify investing in a company that has more red flags than a DRPK military parade? As for breakthroughs, a technological breakthrough and $4.50 USD will barely buy you a coffee at Starbucks. Ask any VC, or anyone who invested in graphene stocks for that matter, it all comes down to execution. Meaningful revenues demonstrate product-market fit. Growing revenues demonstrate a product or service people are willing to pay for. Everyone on here who has been trying to make excuses for them isn't helping the case much. Maybe you ought to direct some questions to the management team? Hold their feet to the fire some.

[@musaran2]

Popular science magazines are chock-full of "revolutionary tech of the future" that never happen and sink into oblivion. Shiny claims are a dime a dozen, wading reality is the true test.

[@joepiv]

@@musaran2 It all comes down to execution. The only true evidence of execution is meaningful revenues.

[@redact207]

I never believed in the company, but I always believed in the pump. Made a nice little bundle and got out. Thanks for the ride BRN

[@Nanalyze]

That's called speculation and we don't do that here because we value our capital.

[@butcherano4660]

The major European car maker highlighted in red at the 7min mark is Valeo. Noting that the Oct 2017 reference was in relation to use of the software accelerator and not the Akida chip which did not have production samples available until 2021. The joint development agreement between Brainchip and Valeo was announced on 8th June 2020. From that point in time the design cycle could be 2-3 years and sometimes longer before a commercial product is developed and incorporated into a commercial product. So that puts us at late 2022 at the earliest and possibly into 2023 for revenue from Valeo products. I don't see any issues with this timeline and wasn't expecting revenue any earlier.

[@Nanalyze]

You're not able to explain away the dozens of promises made by this company over the year. Neither is anybody else. This boulevard of broken dreams is a huge pass. It's hard to see anyone wanting to drink the Kool-Aid here, but thanks for that weak attempt at trying to explain away why management has consistently letdown shareholders over the years. Best of luck on this one mate.

[@Nanalyze]

@AusEire. No, @Butcherano isn't getting blocked, he provided an excuse for one of several dozen broken promises this company has made over the years. As for you, you're getting blocked because you have now commented half a dozen times and not provided one iota of value to our audience of retail and institutional investors who see right through who you are.

[@kenjikool3972]

@@Nanalyze you keep using this statement "This boulevard of broken dreams is a huge pass" What do you consider broken dreams? broken dreams for who? I'll admit I was a little annoyed at buying in after the Socionext Agreement in 2020 at 7c to watch it go down to 4c. However do you not consider a rise from 7.2c selling a majority at $1.80 a dream in 2 years, rather than a broken dream? I understand the "not buying in before revenue", but that statement is now incorrect as revenue has just started. Finally you state that you're not "shorting etc etc etc" but I'm unsure of the point to this video, other than to bash a company? it seems a rather emotional title to a company you're not interested in. But we all have our reasons I suppose, mine being a holder.

[@Nanalyze]

Do you have anything to say about the dozens of broken promises over the past seven years or just going to let those slide? The trading halts? Those are kosher as well? This comments section is for discussing our findings. It's not your pulpit. Either present some points of contention about the facts we've presented in this video or get blocked. Pretty simple. This company has been making promises to investors for the last seven years. We're still waiting for meaningful revenues. When those come, we'll take another look.

[@anthonybusch4141]

@@Nanalyze I have something specific to say about your video then. Trading Halts on the Australian Stock Exchange (ASX) are most certainly “kosher”. This is a mechanism that the ASX uses to maintain an orderly market and minimise potential for insider trading when a company is aware of market sensitive information relating to its securities. ASX listed companies have an obligation to notify the ASX as soon as they become aware of any market sensitive information. The ASX will then place the company into what’s known as “pre-open” which is a 10 minute period where the shares of the company cannot be traded. At the end of the 10 minute period if the market sensitive information cannot be released by way of what is known on the ASX as a company announcement (similar to a press release) then the company (not the ASX) will request a Trading Halt. This is a halt in trading for a maximum of 3 days or until the announcement has been released to the market, whichever comes first. In some circumstances if the announcement can still not be released within the 3 day period then the company will go into a voluntary suspension from trading its shares which will last as long as necessary until the announcement is made. This is all common practice for every company listed on the ASX and should not be considered a red flag. It’s actually a little bit embarrassing that you thought it was a reason for concern. Most ASX investors look forward to a trading halt because this is when positive news is released by companies that may have the potential for a re-rating or uplift in the share price.

[@atifchowdhry5405]

Are you guys ever gonna do a video on a company you do like?

[@Nanalyze]

We have. We've also published videos on stocks we love (stocks we hold in our own portfolio). But if you want to know about all 38 stocks we're holding in our own portfolio of tech stocks, or the 30 DGI stocks we hold, or all the stocks we like, you'll need to become a paying subscriber. You'll be joining many happy campers: www.nanalyze.com/testimonials/

[@salokinsoistok1304]

I don't have a crystal ball, but would be keen for Nanalyze to comment again on this video when BRN's SP is over $5 and their revenue is typical of that future market cap.

[@Nanalyze]

Take the cheerleading somewhere else. The company needs to produce meaningful revenues by selling something. So far, all they do is announce partnerships, deals, ventures, technology breakthroughs, trading halts, and just about everything else. We see right through this and call it out for what it is - rubbish. Take that rah-rah rant to Reddit or explain why this company has been promising meaningful revenues now for seven years and in the past four has only brought in $2.7 million. Or get blocked. Your call.

[@AlejandroHernandez-tt4dc]

thank you for your time and effort, in gathering this information and help educate people like me.

[@Nanalyze]

You are quite welcome. Our focus is, and will always be, on helping to make people better investors. When you help others, it pays off in spades.

[@haydensmith7433]

Very good video - Thankyou! I’m currently researching this company and really scratching my head as to what it has to offer to so many sophisticated and institutional investors. I can find nothing!

[@Nanalyze]

You're very welcome. We did a more recent piece on them here: kzbin.info/www/bejne/m4uqgmiDbpioZ5Y

[@patrickobrien307]

Have they got a good product is it just management.

[@Nanalyze]

We have no idea. If we spent all our time figuring out why companies can't achieve traction we'd have no time to focus on those that are.

[@fcmaster26]

Great content. Sadly most people care about sp and sp only.

[@Nanalyze]

Thank you for taking the time to provide positive feedback! Volatility always goes both ways.

[@bendoyle1097]

I took some notice at your comment early on about a small number of patents. I'm curious, what are your thoughts on the coverage/applicability of the patents, the significance of the first-to-market advantage they provide as well as the personal nature of them (the patents are in the founder's name and not the company).

[@joepiv]

First-to-market with what exactly? Did you watch the presentation where we specifically addressed this as a red flag? Companies that tout some sacred collection of patents (oftentimes connected to the founder) and then break promise after promise after promise. That part? A patent portfolio and $4.50 USD will barely buy you a coffee at Starbucks. Ask any VC, or anyone who invested in graphene stocks for that matter, it all comes down to execution. Meaningful revenues demonstrate product-market fit. Growing revenues demonstrate a product or service people are willing to pay for. Patents mean absolutely nothing unless they can be monetized. And clearly BrainChip can't manage to do that. Maybe you ought to direct some questions to the management team? Hold their feet to the fire some. So the past seven years of broken promises are not a concern to you? Just going to ignore that whole chunk of this presentation? Or do you have some thoughts to share on that? We're here to discuss what we presented, not some rubbish about patents.

[@Nanalyze]

And nowhere did we discuss the size of their patent portfolio. That's not what this presentation is about. It's about failed promises. An inability to execute. Any thoughts on that?

[@EdukatedDeveloper]

They got revenues of approx 4Mill now 😳 (although still tiny for it's MC but it is something)

[@Nanalyze]

Revenues are very tiny no matter what the market cap is. We consider meaningful revenues to be at least $10 million USD per annum. The valuation ratio is off the charts as well. Long term investors can thank the cheerleaders for that.

[@Silv0rX]

Glad I've found this video. Good work!

[@Nanalyze]

Thank you for the comment! Here's a more recent one on this company: kzbin.info/www/bejne/m4uqgmiDbpioZ5Y

[@peterphipps791]

The Casino deal failed not from any Brainchip product (software suite) bit because the company in the deal was taken over (T/O) and the deal no longer needed by them. You have done exceptionally POOR research here in your video which at best is totally misleading and not factual or up to date information by any stretch of the imagination! AKIDA 1000 and the next AKIDA 1500, 2000, 3000 products are what this company has developed and this also include AKIDA 1000 IP which is under license to several MAJOR global players! As an AFS lic holder I find you appalling and wonder seriously if you are not part of the "Activity Shorting" campaign undertaken by TMH , HC and MF and several others recently. Considering this activity has been reported and is under investigation I would seriously re-consider this videos investment advice value.

[@Nanalyze]

Everyone, look! Here's someone who didn't watch the video to the end. See what we are talking about? The short accusations, just like we said. Like shooting fish in a barrel. The dozens of deals that failed to achieve meaningful revenues are what we're talking about here. Attacking the messenger won't help you much here because people see right through you. Take the cheerleading and baseless short accusations somewhere else. They're not welcome here.

[@markdalton3603]

Great Content 👍👍👍

[@Nanalyze]

Really appreciate that feedback!

[@butcherano4660]

Brainchip completed a back door listing on the ASX through Aziana rather than going down the path of an IPO. This is common and legitimate. None of the management team, board of directors or anyone working for Brainchip has come from Aziana. The technology has been developed by Brainchip and in particular the founders Peter Van Der Made and Anil Mankar.

[@Nanalyze]

Did you have anything to say about the dozens of broken promises over the past seven years or just going to let those slide? The trading halts? Those are kosher as well?

[@butcherano4660]

@@Nanalyze Yes. But you continue to delete my comments for no reason.

[@Nanalyze]

Telling lies does nothing for your credibility. If you don't add value to our audience who doesn't want to read drivel, then you'll get blocked and deleted. It's pretty simple mate. Now, we'll try again. Did you have anything to say about the dozens of broken promises over the past seven years or just going to let those slide? The trading halts? Those are kosher as well?

[@butcherano4660]

@@Nanalyze This is a joke and you know it. Leave my comment visible and then our conversation will have some context. Why do you not want people to read what I have to say which is factual and meets your policy guidelines for posting?

[@Nanalyze]

Did you have anything to say about the dozens of broken promises over the past seven years or just going to let those slide? The trading halts? Those are kosher as well?

[@Void19188]

They are 15c now. You called it haha

[@Nanalyze]

Always invest in companies, not stocks. Still no meaningful revenues?

[@jlepp]

Liked and subscribed . 👌

[@Nanalyze]

Johnny, you're the type of person who we produced this video for. As you can see, it also attracted lots of rats as well ;) Great to have you as a subscriber!

[@peterhannibalpapedeneergaa3534]

I am up 600% on BRN, and expecting 200x within 5 years. Your research is very old, I would not touch the stock in 2018, but anything after 2019, also knows as recent developments. Why would you make a video on a stock that is pre revenue if you NEVER invest pre revenue? Only one reason comes to mind. Neuromorphic is the ONLY answer to broad scale general AI. Peter Van der Made is going down in the history books. You should stick to stocks with Revenue, you said it yourself.

[@peterhannibalpapedeneergaa3534]

@@auseire8656 haha, expecting deletion anyway :)

[@Nanalyze]

@Peter Hannibal. @AusEire had is comment deleted because he can't articulate a proper thought. You're next unless you add some value to our audience. Anything in this piece you disagree with?

[@Nanalyze]

Another tired worn out cheerleading comment of the type we explicitly talked about in the presentation. Anything you want to say about the dozens of broken promises the company as made over the years? The trading halts? This boulevard of broken dreams is a pass for anyone with one iota of common sense. Thank you for proving to our audience exactly what we talked about in the video.

[@peterhannibalpapedeneergaa3534]

@@Nanalyze Only thing I would add is I have more Faith in NASA, Ford, Renesas, Megachips, Valeo and Toyota than a sub 800 subs youtube channel. You are missing huge gains my man. As to broke promises, not since i bought in.

[@Nanalyze]

See folks? See what we're talking about here? Keep digging that hole Peter.

[@RavenAndrew1]

looks like Kit Walker / Sunny made a youtube page. i understand why someone may not invest in BRN due to pure fundamentals but your video could be considered slander with intent to help your short position.

[@joepiv]

Look everyone. Another troll who didn't actually the video making false accusations. It's all addressed in the video you clearly didn't watch Andrew. Why don't you take your slanderous comments somewhere else or get blocked in a hurry. What FACTS presented in the video do you disagree with exactly? UPDATE: And what do you think he responded with like a completely ignorant troll? Yes, that's right little Johnny. He doubled down on his ignorance and said "good luck with your short position" so he was shown the door.

[@KarrottsKelpies]

In just the last year and a bit, Mega Chips and Renesas are pretty big Companies you neglect to mention have Intelectual Property Contracts with Brainchip. Sure the early venture failed with Casino's 5-6 years ago. Forget the Past... This is NOW!!! This is a new improved Product and Just look at the Brainchip Management Team and the 2 Founders of the Akida Chip. If you don't agree Brainchip have a Brilliant Management team then you must not have much Knowledge in this Sector. Peter Van Der Made is a very smart man with a previous very good track record with IBM and thier GPU tech started with this man. Obviously i'm an investor "over the past 2 years". Thats why i just cant understand why you would do a video like this and leave out the important stuff from recent times and focus only on stuff that no longer exists. Get with the times and appreciate what this very small group are about to achieve... The Future is Here!!!

[@Nanalyze]

Take the cheerleading somewhere else. Your decision to ignore the giant stack of red flags we just finished talking about shows you have ulterior motives. Investors have heard this same tired worn-out spiel for too long now. We've seen this story a dozen times before. Nobody's buying it mate. If you post any more comments about brilliant management teams - seriously? - you're getting the boot.

[@foxmiggster8236]

Brainchip has a BIGGER market cap than Megachips. Megachips made nearly USD$800m revenue last year - Brainchip brought in under $2m. BRN is OVERPRICED. Retail FOMO moves this sock, not company fundamentals. The very definition of a sh#!co.

[@Nanalyze]

It's a company that's made up of broken promises so far. That's for sure. Until management shows us some meaningful revenues there's nothing to see here.

[@YogeshBaisyet]

Totally misleading cant believe it

[@Nanalyze]

And here we go folks. Did we not predict exactly this?

[@bryanbryan3656]

Is this sarcasm?

[@Nanalyze]

You're doing exactly what we predicted would happen in the video. Thank you for helping to prove our thesis. If you have some point of contention to raise about the facts presented in the video, by all means do so. You're simple reinforcing what we said when you leave vapid comments like this one.

[@foxmiggster8236]

Why would it be? Brainchip stock is so overvalued, all I see is peeps ramping the company trying to drive the stock price up. Totally disconnected to business fundamentals. If BRN ever make the ASX200 they'll be short sold out of town.

[@Nanalyze]

We're talking about broken promises here, not valuations. You can't value nothing.

[@peterhannibalpapedeneergaa3534]

This is gonna age like milk. Really bad research, do not listen to this nonsense.

[@Nanalyze]

Another cheerleader with absolutely nothing of value to add. Try again. Add value or get shown the door. What facts presented do you disagree with?

[@Void19188]

This didn't age well lol