Ann: Sierra Sage to unlock US product sales and manufacturing, page-6

Sometimes the market does react irrationally to these hypey-but-empty announcements, but usually it doesn't, and we're very unlikely to see 6.5c today (it's entirely likely CPH will never again see 6.5c).

CPH repeatedly points to the total size of the market in terms of money spent per year globally or nationally on the total sector, but these figures are only relevant if your company owns a monopoly, which of course CPH does not. If I start a company selling cola, it means nothing to say that the total cola market is XX billion dollars globally, because my little company won't be knocking out Coca Cola, Pepsi or even the smaller existing brands, unless I am coming in with an amount of money comparable to my competitors to establish my company next to theirs. To put it simply, when CPH points out how massive the total market is, alarm bells should be ringing because CPH has a tiny little market cap compared to its main competitors and unlike their multibillion dollar profits, CPH constantly loses money. Even if CPH did miraculously become cashflow positive (extremely unlikely), it is still not anywhere near 1% of the size of its individual competitors.

CPH also refers to the market size in terms of potential customers or customers on various platforms etc. This is like me saying I am going to start a business selling things on eBay, and jumping about raving with figures of the size of eBay and how many people buy things on eBay and how much money goes through eBay. That's great for eBay, but I am not eBay, and if I can not be competitive against the existing sellers I will struggle to make any sales, and if I'm not covering my own overheads I'm still losing money, no matter how large the market is or how well my competitors are doing.

Basically, if you interpret the CPH announcements properly when they talk about total market sizes, number of consumers, etc, if anything it should encourage investors to go buy shares in CPH's much much larger and actually successful competitors (which perhaps might actually be a good idea in some cases).