As expected.... sigh. Another underwhelming quarter, referencing project delays and promises that additional contracts are coming.

Fundamentally, my investment here looks to have been a bad one. @mikebrisy's recent analysis paints the perfect picture -- this is not mission critical software as my investment thesis initially suggested. They are struggling to win contracts, are no longer growing sufficiently and perhaps most importantly I no longer believe management are competent enough to take the business forward.

Last year in general was a shocker -- cash receipts collected went backwards considerably, while costs widened. This is continued evidence of more of the same. Perhaps what grinds my gears the most is management suggesting they had the capital required to operate sustainably, before eventually succumbing to what was a much-needed raise at dilutive levels. Their strategy has not been effective to date and I wouldn't be surprised if we hear the dreaded 'strategic review' in a year or two.

Stepping backwards, I think they have spread themselves too thin. This is a good case that demonstrates you should target certain industries/thematics and not try and be a 'jack of all trades' across the board. This approach is difficult when you are cash flow negative, particularly in the current environment where funding is increasingly difficult to obtain. I also don't think we can make a case that Pointerra are genuine market leaders, and their balance sheet and growth (or lack of) supports this.

More than anything else, my decision to sell at these levels boils down to the fact that this just doesn't appear to be a high-quality business like I once thought, and there are much better opportunities elsewhere.

Disc: sold