[odysee]

We are dreaming again I suppose. 25,36,48… Let it cross 10 and 13.02, and we can say maybe game on.
It’s struggling at 5.30/5.40 and no one with deep pockets has the guts or confidence to buy or add.
Never mind, hope lies eternal in the human breast. Dormant mostly. But can surprise occasionally.

[Anonymous]

First brightcom should solve the problem. Forget about 36 48. If problem addressed properly in time then it will be in a different level in terms of price as time goes or else it will be wealth destroyer. It’s all up to the management how they are viewing it and how they are planning and executing their business plan. At least I didn’t buy bcg only for stupid 48. Really joking.

[JRS]

I believe Market is valuing BCG on stand-alone basis and not on consolidated basis.

[drjaysee]

Dear Friends, suddenly the PE has increased to 11.60 from less than 1 few days back…Appreciate if anybody could explain about this pls. Thank you.

[JRS]

@drjaysee

It is PE for standalone, means only for Brightcom Group audited in India without taking financial statements of its subsidiaries outside India.

For Consolidated PE is around 0.56

[JRS]

That was my point in my earlier statement…That is BCG is valued on standalone basis not on consolidated basis.

If we look at Standalone basis the present Market value looks rational, but if we take on consolidate basis, the Market value looks too less.

Even I am confused what to follow.

Also BCG hasn’t got its subsidiaries audited I believe, once the BCG gets audited the subsidiaries and consolidated the Market value may go up. Else the sales of the Standalone company should go high for market value to go high.

Until then the market value may fluctuate in this range.

As usual we are kept in dark by the management and should wait. No analysis will help us unless the management remains transparent.

Till then we should remain rational by considering Valuation on standalone basis and not on consolidated basis.

[drjaysee]

Dear @JRS, many thanks. Understood.

[Anonymous]

@jrs. Better we should wait for BDO report to come. It will show what is there. Real picture will come out. At this point in time, the only thing gives us a bit solace once the report comes. See the report delay s means everything delay. LOC highly impossible. Biggest uncertainty again corona spiking. It is foolish to think under lockdown always advertising industry will remain less affected. USA corona increasing rapidly in last two days. Italy Spain increasing day by day. Post election market always react and bcg is not immune from that.

[Brijraj13]

Since 2014, first investment made @64₹, Day begin with hopes and night comes with if and but, the chains of if and but looks like no stop, dead issues crop from graveyard and look it is last, now my situation is like Rape is crime but no option, So enjoying it with IoT blockchain and so on. My pain don’t wants to hurt anyone, My decesion My investment jai ho Baba Suresh Babu ki🙏

[JRS]

@Logan

I am confused to consider Consolidated figures or Standalone figures, while valuing BCG, because in BSE they are displaying only standalone.

Kindly help me to understand this.

Today I have downloaded Audit report of BCG, however I have not read it in depth. Should start reading it.

If I come across any doubt I will raise it, kindly help me.

It may also help us all to have quality discussion based on the Audit report than just talking based on market sentiments.

In my view each member should get actively involved in studying the Annual report and discuss to clear all doubts they have. This may Help clear out doubts.

Though studying it may be boring😊

[Logan]

@JRS, while analysing BCG you should always consider consolidated figures because all of BCG’s strengths are in BCG’s subsidiaries who do online/digital advertising business. BCG’s Israeli sub OMS is the best among the subs. It’s because of the Israeli team, BCG’S growth was high.

The parent company is more like an holding company. Once programmatic advertising picks up in India like in the western markets, BCG may start scaling up the operations in India. Once the issues are resolved, they may have other plans like the project with Mr.Pisipathi, AI & ML etc but their main focus has always been on online/digital advertising.

The problem is all the financial websites report standalone figures and they compare BCG with random companies which causes more confusions so it’s always best to read the annual report to understand things better.

There are many items in the annual report which are mentioned as other assets, loans and advances etc so to get a clear picture please read the asset impairment presentation that BCG shared.

If you have any doubt please let us know.

[JRS]

@Logan

Thank you so much😊

[JRS]

Kindly watch this Video on YouTube “Financial Shenanigans(by Howard Schilit)

The Video tells how the companies manipulate and fool the investors.

This is just for information purpose.

[Anonymous]

@JRS when you invest there is risk. Investment should be there only where you feel comfortable. There is risk in every investment including BCG. Axis settlement should happen earliest. November hearing if no progress, then I personally will take a sign of cautious personally of my investment. Still no update on September 14 to 17 conference. October 5, 2020 meeting face to face, it was requested, but over 20 days no development. This is not expected. Uncertainty definitely is there, how things planned out no body have any idea. Dreaming about LOC at this point is childish thinking.Final approval is not so easy. Initial talk may be good. Exactly that happened with BCG. All major economy is facing pinch of first wave still. Second wave slowly, but fiercely approaching. If organization doesn’t take proper remedy, it can collapse sorry to say. Who expected Lehman brother collapsed in 2008, but it happened. In my opinion, in modern times the largest corporate failure. A good company is not one which makes good profit only. A wise organization is one which identity what are the possible challenge and threat in business and solve quickly rather than delay.

[JRS]

@Antu

You are very much right that all investment comes with risk, but that risk must be calculated risk and should not be a blind risk. This is what I believe.

And I feel one should not sign of only because of NCLT case, though it is not good On the part of BCG to drag it so much. But BCG has no option as it has no cash to settle it after settling SBI and Canara Bank.

Though BCG can settle this by transferring amount from its subsidiaries which are cash rich it is not that easy as the exchange rate comes to 2%( for single transaction)and no business would be interested to loose that much money, instead LOC would be better option because it will cost very less around 0.7 to 0.75%( taking 8 to 9% annual interest), but again not easy before NCLT case is settled so a vicious cycle.

Coming Back to the investment part, the return on your investment would be as below by taking Standalone Earning per share I.e 0.5.

1) if share is bought at ₹12 then your ROI would be 4.16%, which is better than keeping FD

2)if share is bought at ₹5.3(present price), then ROI would be 9.4%, very good investment though not great investment.

If you take consolidated earning per share it is 9₹ per share which takes it near to 100%.

But let us be conservative and take only standalone earning. If we think like a business man then this is Still a good investment, but we are thinking as multibaggers then as you said we have to take a risk and whether that is blind risk or calculated risk, I am not in a position to tell.

[Anonymous]

@JRS you may be right, but I personally want to be little cautious of not losing 80 percent price. My suggestion to myself is be foolish is better than losing. Actually, now situation is bit concerning, which we ignoring in the hope of LOC or daum settlement or axis closing, but reality till date is there is no development. This is not good sign Yes, I bbelieve personally. I may be wrong. The more axis delay the more complication will be there. In financial world,one famous word is bad debt. There is saying in general view in layman’s terms don’t make a debt to bad debt.

[tanv151]

Dear all,

Further to our in person meeting with SKR on Oct 5th, we have sent an email to SKR today for a follow up meeting on Nov 3rd as we want to close the loop on some of the outstanding items agreed in our last meeting.

We are hopeful that SKR will honour our request and meet us on Nov 3rd.
We will keep you all posted on the progress. Wish us luck 🙂

[buffet]

@tanv151

Thank you for initiating this. As suggested earlier, I think we should be doing this every quarter.

Please ask questions on BDO audit. I hope some of you have received E&Y audit copy. Can you plz confirm. Similarly, plz ask BDO audit copy as well.

[odysee]

@JRS , I cannot understand your comment in #9059 about being ‘conservative’ and only considering the standalone local business of BCG and its earnings. How can you leave out 80% of the total business in revenue terms ( that too the mainstream business of the group) and almost the entire profits earned and declared and presented in the consolidated balance sheet and profit and loss account of BCG?
Those earnings are generated through 100% subsidiaries ( fully owned by the India listed entity), and constitute an integral part of the BCG Enterprise.
It would be a fallacy to consider otherwise.

[JRS]

@Odysee

I am not leaving consolidated result, but saying even if we take standalone EPS still the investment of 5.3 ₹ is justifiable as ROI will be around 9% which is better than keeping the same amount as FD in Bank.

If we take consolidated it is better around 100% ROI.

So my point was if we think like a business man even if we are conservative and take standalone still the investment of 5.3₹ is good investment.(because I think market is valuing BCG by taking Standalone).

But if we think like a multibagger then we may get frustrated as it is fluctuating around 5 and don’t know till when it goes like that.

So point was let us not get frustrated And hold on to stock as the investment is rational around ₹5.3 and leave it to time for bcg to become multibagger which is not in our control.

[Author]

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