CISCO Support, page-18

Despite my better judgement and the inevitable slagging I will get, these are my thoughts.

A bit of history - I was one of the original shareholders in Covata and rode it up and down and up again (repeat process). This was at a time that most who now post on this thread were no where to be seen (Glyco and a few others excepted).

Back in May when the share price was .25c I advised that the stock was in trouble and was promptly told that as a "Not Held" poster I was not entitled to an opinion. I guess the same applies now, although the amount of skin I have had in this share leaves me with a sense of curious voyeurism.

I may buy back in, but a great, great deal would have to change. These are just a few:

1. When Covata listed it had 370m (Novemebr 2014) shares listed. Today they have 470m shares listed with another 100m unlisted. Continued shareholder value dilution since listing and as far as the eye can see.

2. The CISCO deal was signed in March 2015. Not one shred of income, advancement or even solid proof of future revenue from this deal has been shown by Covata. Covata in turn has thrown millions at serving CISCO and no one even knows what if anything will come of it. This despite at signing shareholders being told "Covata has deployed the product to Cisco and the initial customer engagement has already commenced."
The agreement has a life till March 2019. It is not 10 years; 4 years minimum is what shareholders should be focused on. My expectation is that it will lapse in 2.5 years, unless Covata come up with something really out of the box.

3. This particular space in cyber security is littered with competitors and risks to its very existence. Just because it is being carried by Deutsche Telecom, Macquarie etc does not mean that it is going to be taken up by users, who have a multitude of choices with many of them free of charge. Even our own Prime Minister and most of the cabinet and bureaucrats use TextSecure not Covata.

4. Marketing is average at best. I have seen photos of the Covata stand at trade events and it looks like something that was put together by some year 10 students to raise money for their next rugby trip.
Posting endlessly about cyber threats and incidents is great for the category as a whole but does nothing to build faith in the company; shareholders both existing and potential want to know how Covata can help specifically. We all read the papers!
A lot less of Nikki Parker using her Twitter page to bitch about public transport in Washington, her favorite charities and food would go a long way in improving a favorable view of professionalism. Otherwise, unlink it from VP Growth & Strategy @ Covata.