Brainchip Holdings Ltd

First company to launch Akida Neuromorphic System-on-Chip (NSoC) to the market: Brainchip Holdings Ltd (ASX: BRN), the leading neuromorphic computing company, saw its stock price surge by 7.14% on September 28, 2018. The company has become the first company to bring a production spiking neural network architecture, the Akida Neuromorphic System-on-Chip (NSoC), to the market. With this architecture, the company has strengthened its position as the leader in acceleration for artificial intelligence (AI) at the edge and the enterprise. The Akida NSoC is ideal for edge applications that include advanced driver assistance systems (ADAS), autonomous vehicles, drones, vision-guided robotics, surveillance and machine vision systems. This is because Akida NSoC is small, low cost and low power. Akida NSoC’s scalability will allow the users to network many Akida devices together to perform complex neural network training and inferencing for many markets including agricultural technology (AgTech), cybersecurity and financial technology (FinTech). Moreover, it is expected that the artificial intelligence acceleration chipset marketplace will surpass US$60 billion by 2025. Neuromorphic computing can significantly accelerate AI, especially for low-power applications. There are many technical hurdles that can be resolved, and the industry will deploy a new class of AI-optimized hardware over the next few years. Further, BRN is collaborating with major global manufacturers in a multi-market strategy to boost early adoption of the Akida NSoC. Therefore, BRN stock has risen 21.74% in three months as on September 27, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $0.155 (up by 3.3% on October 1st 2018) while the Upper Bollinger Band that defines the overbought zone is noted around $ 0.1874, and the stock has respected support at $ 0.145.

DigitalX Ltd

Served with an Originating Application and Statement of Claim: DigitalX Ltd (ASX: DCC), the blockchain-based solutions provider and ICO adviser, witnessed a stock price plunge of 11.70% on September 28, 2018 after the company was served with an Originating Application and Statement of Claim in the Federal Court of Australia. This has been filed by a group of parties, that are related to an investment made by those parties in an initial coin offering (ICO) to which the Company was an advisor. The claim is for a combined amount of approximately US$1,833,077 plus damages. The Company and its legal advisors are reviewing and examining the claims made. Further, the company has denied any claim of wrongdoing and, and expects that this will become apparent as this matter progresses. The company believes that DCC has strong grounds to defend any claims brought forward by these applicants. Therefore, DCC plans to vigorously defend this matter and protect the reputation of the Company. Meanwhile, DCC stock has risen 14.63% in three months as on September 27, 2018 and is trading at a reasonable P/E of 11.33x. Based on the challenges at the moment, we give a “Hold” recommendation on the stock at the current price of $ 0.080 (down by 3.6% on October 1st 2018), while it finds support at $ 0.079 and resistance level is around $ 0.090.
 

Dropsuite Ltd

Formed strategic partnership with ALSO: Dropsuite Ltd.’s (ASX: DSE) stock has risen 28.87% in three months as on September 27, 2018 after the company for 1H 2018 has reported 70% rise in revenue to $1.91m on HY 2017. The company’s Annualised Revenue Run Rate increased by 91% to $4.87m, and DSE has decreased the EBITDA loss by 30% to $0.77m compared to HY2017. The company has strong cash position of $4.03m at 30 June 2018. Further, in 1H 2018, the Paid Users grew 143% on HY2017. Meanwhile DSE has formed partnership with ALSO, which is Europe’s third largest B2B Information and Communication Technology (ICT) distributor, the second largest in Germany and one of the top distributors of cloud services in Europe. DSE will work in partnership with ALSO in each region for providing the most active Office 365 resellers with Office 365/Dropsuite Backup Bundles which can be easily activated for end-customers. This partnership with ALSO is a valuable growth driver for DSE to further diversify the partner base and establishment of the new channels to increase Paid User numbers. In addition, DSE is already in talks with several of ALSO’s Cloud Platform partners. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.130 (up 4% on September 28, 2018), while it has moved over 50-days moving average with better medium term outlook.
 

1H 2018 Financial Performance (Source: Company Reports)
 
 

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