I agree with your sentiment; i.e. I think it is a young start-up...

I agree with your sentiment; i.e. I think it is a young start-up with some great brand-name customers and loads of potential. They're doing something right on the product/technology front. But the company has stalled. And whoever wrote the corporate jargon in this report... well they need a reality check.

Some worthy highlights:

"The current board and management have forged ahead to rebuild the fortunes of the listed company."

What a crock. All the company did in the first half of CY2019 was save money from the CEO and COO resigning, complete a capital raise and rack up accounts payable. That's not forging anything... I'd call it slamming the brakes on and looking around to see if we've avoid a crash.

"The company has an effective and complementary double prong commercial approach."

The company has always had a double prong commercial approach. But it is not effective. In particular, the business model used to sell the monitoring solution clearly hasn't produced results. The company was pursing resellers which failed (just like it did for all other IoT companies). The only strategy which seems to have attracted decent results in the IoT space is a white-label sales model. If the CCP business model was "effective" we'd see the old Customer Contract Value graphs included in the report. But where have they gone??

As for the contract development, we haven't sold enough!

In summary... we need new batteries for our double ended selfie stick to work properly.

"The Group has also started to expand the product suite, that with minor technical adaption can be applied to different very different commercial applications across agriculture, automotive and utilities"

Hang on... the company commenced this strategy years ago (e.g. Capital Brewing) and we've been told about CCP supporting all sorts of sensors (e.g. Yumbah Aquaculture from 2017). You'll also recall electricity monitoring was announced.... from the 2018 Annual Report: "The company has also announced its appliance-level energy (power) monitoring and shipment monitoring solutions for release in the second half of 2018".

The pitch has always been: food is the initial target market and the company aspires to break into other sectors. And from two years ago the company demonstrated its platform working with lots of different sensor types (pH, dissolved oxygen, humidity) in lots of different environments. So to say the company is just starting to expand... well to me its a factually incorrect statement.

From its own announcements, reports and website media releases, the company started to expand the product suite a long time ago. They just haven't been able to commercialise new applications.

"During the second half the Bangalore based development team was identified as an under-utilised revenue centre."

Surely this is nonsense. For a long time the company's investor presentation and shareholder updates have highlighted the importance of CT1's contract development services. For example, the 2018 AGM presentation. Saying the Board has only just realised the importance of contract development (i.e. the Bangalore based development team) is very strange.

My hope remains that something is on the cards for CCP. Putting the Board aside (which I'm not convinced has the right resources) the product team and the platform seems to have significant value. And from that point of view, I think the company is undervalued. But there's nothing in this report which leaves me to believe the emperor has new clothes.

Yak