IndepthDiver
Regular
Hey Dio,Hi Idd,
I had not considered such devious machinations. Certainly, the SP was manipulated down. The low volume of trade during the period showed that shareholders were not selling, but I can't see how pushing the price down would help UCP.
Yes, it would be good to have a recession buffe, but, in the support document for the SPP, we were told it, together with the capital raise, was to further develop TeNNs and to develop a cloud-based FPGA, which, I presume, would serve as a marketing tool.
A week or so ago, we were discussing an intern, now employed full time, who had developed a system which looked like a precursor for the on-line FPGA, so I think the company is being driven by Sean's "Damn the torpedoes" attitude.
Assuming this is the last capital raise at such a low price, this is the most shares the company will give away if they want to raise the same amount. If investors took up the entire $3M, this is close to 15 million shares (getting close to 1% of the current shares available).
Nevermind that UCP are getting 100 million shares, in the long term it's in their best interest to minimise how much other people hold.
I'd argue that share price is one of the strongest tools available to cause investors to get frustrated and consider selling. When it gets too low, investors presume something is going wrong (even if there isn't) thereby also helping the giants like UCP get more cheap shares.
I think recession risk shouldn't be completely disregarded. If you were going to raise money, it will flow more freely if there is a positive spin. However, just the other day Ford indicated they were dropping a few EV lines and changing their strategy. Many other big companies have been cutting staff and scrapping products recently.
From a sales perspective, the automotive industry has shifted in the past few years partly from lower customer interest in EVs than hoped. Many companies have delayed their EV commitments and a lot are shifting more to hybrids now. The EV market is one of which Brainchip was relying heavily on. Hybrids still have engines so aren't as reliant on minimising every bit of energy as EVs.
It's not to say these companies are no longer interested, they're likely trying to reduce costs for the time being (they all overspent billions on EVs) and may push out their initial plans. New EV models may still include Akida and new features developed for EVs may still get included in other new car lines, but there may be less and it's too soon to say.
That said there are other technologies which will continue to be innovated and improved on to stay ahead of competitors, so integration in products like Lidar and Radar hopefully aren't too far off, as well as other safety focused technologies.
It's also worth pointing out that machine learning technology doesn't guarantee the correct result 100% of the time. There is always going to be some hesitation by customers and regulator scrutiny if the product isn't 100% safe and is harder to verify, but machine learning capabilities are at the point where they are as good as or better than many human experts in most things. People are aware doctors aren't always correct but will generally have a lot of hesitation about using an AI health tool promising 90% accuracy, even if doctors don't achieve greater than 80% for the same task. It will take time but eventually acceptance will occur.
With this in mind, I still find it really interesting that TENNS demonstrated 100% accuracy in an application from one of the company presentations not too long ago (vital signs from memory). Being able to demonstrate this will not only increase customer interest, it will also likely speed up how fast their products can enter the market due to regulations. If TENNS has that sort of accuracy with other applications it should accelerate uptake with those too.
If Shaun is raising money to speed the time to market of TENNs, then this is a wise choice IMO. I still think $20+ million is a lot to raise for software improvements. If you have experienced how good and cheap AI tools are becoming you would understand. Hence my thought about recession (and other opportunities - with Jason on the SAB, SNN supercomputer / servers are definitely on the cards).
I think Shaun pulled the short straw by becoming CEO when he did. The economic conditions were pretty poor when he started and they're not much better now. A strong economy will drive retail interest in products, and hence customer sales. At the very least, from what he's been doing I think Shaun has a solid strategy in place.
I'm still of the view that the Space industry is almost a guaranteed success because as you remind us, there are large radiation benefits digital provide over analog. Given time frames of the space industry, if they are starting to get close to having chips or products ready, I think the consumer market should be even closer. I'm still optimistic that we are really close to success.