CPX is in a very strong position. 14 years of building world-leading technology, licensees and now a22 May 2020 20:40
Just to reiterate this, CPX for the last 14 years has operated as an R&D company, developing SuperCapcitors that are more efficient, smaller and offer different power capabilities vs traditional lithium batteries. As a collective of incredibly smart people, their business model has been to partner with the worlds leading electronic component companies such as Murata, AVX, TDK and others.
These billion $ multinational companies have far superior resources to begin adoption by complex manufacturing processes.
Murata has switched the licencing strategy to focus on the development of Automotive Supercaps and has an ongoing relationship with Cap-xx.
As part of this switch, they agreed to sell the $14m production line they invested in to Cap-xx for circa $3m, as well as letting cap-xx inherit their customers and order book.
Please see the update on this from the recent 'Trading Update' RNS:
"As part of the project to transfer the former Murata manufacturing assets, CAP-XX has acquired the outstanding finished stock of Murata supercapacitors, which was manufactured to facilitate the transition of Murata's customers to CAP-XX. Direct product sales from CAP-XX of the expanded product range have now commenced, supported by the launch of a new CAP-XX website."
Not only do Cap-xx have world-class technology, which companies with billion$ revenues are paying millions to access, but they are also about to become a direct to customer manufacture, producing all components themselves, elevating them into the manufacturing space. No mean feat as this is an industry with a very high barrier to entry and only a handful of credible players - before the end of the year, Cap-xx will be joining these on the global stage.
Their sales strategy has been focused on continents, with leads in Europe, Asia and the US. In this post I will not go into their product range but I suggest you take a look at the variety of use cases; Automotive, IoT; POS; Wearables;
The big news is the Murata production line purchase, it's not secret news. It's going to be game-changing, clearly, and take Cap-xx from an R&D company into a manufacturer with global reach and leading tech. This pandemic means that innovation programmes that are seen as a 'nice to have' will suddenly be prioritised as BAU is disrupted and adoption of IoT / Wearables etc. will happen in months not years. This plays right into Cap-xx's hands IMO and the company will hopefully be at the right place at the right time to capitalise on this.
There are no secrets here, it's all right in front of you, so people new and old I suggest you read the facts, look at the world, the potential of this company and make an informed decision about whether Cap-xx is an appropriate share to hold in your portfolio for the next 3/5 years.
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