General Discussion/Ask Queries

Viewing 20 posts - 3,481 through 3,500 (of 3,873 total)
  • Author
  • #11135
    Registered Boarder

    Generally, markets hate court cases and legal issues (and also debt sometimes). Markets hate these things because they bring uncertainty with them. We can never know how long a case goes on for. We are seeing that in Reliance-Future-Amazon case. Even the biggest companies are not getting a clear picture on what will happen. Till markets see less uncertainty, there’ll be volatility and retail investors should to be ready to digest that volatility. Operators enjoy uncertainty and they also enjoy volatility. Combination of these two things will make operators very happy.

    Thankfully, with BCG, in my opinion, the two legal issues that are there aren’t as big as people believed. From now on, hopefully, we will see value realization happen.

    We have come a long way actually, we have seen uncertainty, we have seen volatility and we have seen the combination of those two things also. Few years back there was lack of trust on the numbers, then there was uncertainty with DAUM issue – now we have a somewhat clear picture but 3-4 years back that was not the case. Then, before the pandemic, and before Affle came to the market, most people didn’t really understand the business properly. When I say business I don’t mean people don’t understand online/digital advertising part, what I mean is the business model of the company i.e. payment cycle – high receivables, low payables (even now many don’t get it properly), cash flow issues of the company (still now we can see people commenting 400crs profit but can’t pay 40crs etc), the need to invest heavily in technology etc. People used to say why can’t BCG pay more than 50% dividend? Thankfully all these have changed a lot in the last 1-2 years. Still there are people who don’t understand many things but that percentage is very small compared to the past. Now we have less uncertainty compared to the past – there is reduction in pledged shares, 2 bank loans have been paid off and the other is almost done.

    (Sorry for such a lengthy reply – most of the times my replies will be lengthy because there’s no easy way to explain many things in short)

    Registered Boarder

    @Logan thanks for your reply, I think one of the biggest takeaway which I could personally take from BCG since last FEB is that lot of issues have been resolved or getting resolved. Doubts are much lower and confidence is much higher.

    I think axis is almost done and PW & daum is pending but i hope it will also be closed in 2-3 months.

    Now the company will get Cash from PW around 260 crore and then LOC is also in progress i assume it will also be couple of hundred crore as a minimum.

    So we are looking at at large amount of cash at this moment although usage of this cash is not clear. This looks exciting but we have some bad examples of similar situations in stock market as well where cash was not put to good use.

    Lets hope for the best and wait few more months so that all legacy issues are resolved. But very exciting times ahead.

    Registered Boarder

    Dear @Logan/Experts, yesterday Vipul Organics has allotted the 7,00,000 Warrants at an issue price of 111/- per warrant (including premium of Rs. 101/- per warrant) on preferential basis. They have just sent the request to exchange and waiting for the approval. But the current price is 149 (may be it will come down like BCG – Went to 9.5 during PW approval and came down to 7.75 levels). How do you see this and we are all discussing that BCG’s current price is controlled only for the reason of pending of PW approval. Appreciate if you could share your views which would be a great eye-opening for all BCG investors. This is just a possibility to find out the cause for price suppression on BCG. Thank you

    Registered Boarder

    @drjaysee In the case of Vipul Organics the promoters stakes are already high around 64% and even the warrants issuance to promoters are just about 7% of the total equity capital.

    In the case of BCG the promoters have a comparatively low stakes of about 37% in that too about 1/3rd of their stakes are pledged (which may be an important reason for them not taking PWs directly) over and above that the size of PWs issued by BCG is massive (about 60% of current equity) hence the issues of artificial price control either in the markets or even by a deliberate stoppage/delay in resolving legacy issues or flow of good news is possible because only then the prices of the stock will be subdued otherwise it would have climbed sharply by now.

    So there is a method in the madness to serve a specific purpose and it will become clearer in the next few weeks/months.

    Registered Boarder

    Dear @jay69, thank you very much for your swift reply and appropriate clarification. I believe, the current situation is indirectly giving opportunity for us to learn many things…Every stock has its own time and hopefully, BCG will show its real value soon…

    Registered Boarder
    Registered Boarder

    @drjaysee (#11123)

    I don’t think the CEO is under-reporting the results (revenues or profits). The company is not doing so great since 4-5 years when it comes to growing the business. The company reported good results in Q1 and a somewhat good result in Q2 so if he really wanted to under-report, then he’d have done it that time itself.

    See, the problem is, BCG is not having enough cash/liquidity to take advantage of the current situation in the market (adtech market). In FY2020, for 440crs profits, BCG could generate only 16crs free cash flows. BCG needs to invest heavily in technology to stay competitive or else companies like TTD, Magnite and the bigger companies like Google, Facebook will take away BCG’s business. The problem is the payment cycle, BCG is not getting cash whenever it wants and also it is not getting all the profits at once to have good liquidity for growth. At the end of the day you need more free cash flows to grow the business.

    I’m not defending the CEO/management but I understand their problems. We are seeing TTD, Magnite, Pubmatic and Affle and we are disappointed with BCG but Criteo also has reported not so great results. Both companies are going through a phase (both are little old compared to the others). If you remember, BCG had great growth rates during 2010-16 period. Back then it was a relatively younger company and younger companies will have good growth rates. Google and Facebook are giants and they have monopolistic businesses. I don’t think they can ever be stopped and the only way to stop them is by breaking up their businesses. Smaller companies don’t have the advantages that these giants have.

    Few years back, only Criteo was doing better than many other companies but then it crashed from $55+ to below $7. Everyone was very confident on Criteo back then but see how things have changed.

    August 2016

    Market Cap of Criteo – $2.59B
    Market Cap of all the other ad tech companies combined – $1.22B (This was before TTD’s IPO)

    Back then,
    Rubicon Project (which is now Magnite Inc) – $316M (Criteo’s MCap was more than 8 times Magnite’s)

    Magnite Inc – $6.55B (3 times more than Criteo’s MCap of $2.05B)

    Then we have to look into the LOC part. BCG is seeking LOC from the past 1 year at least. They have to report exact results to get the LOC. Lenders will be very careful on all these things. They will check everything before giving any loan to BCG. If they get to know that BCG manipulated numbers then not only will BCG not get the loans but other lenders also won’t give any loans to BCG. They will put a case against BCG also which will lead to bad press and fraud charges. If BCG had reported wrong numbers in the past then that would’ve worked but they can’t do it now as the LOC approval process is going on.

    Then we have to look at things from the lender’s point of view.

    I don’t know all the procedures and approaches that banks consider before giving loans but I can talk about how much confidence they may have on the company.

    If the management under-reports the numbers then it will be very disadvantageous for the company. The banks give loans looking at the business. If the business is doing well then banks will be ready to lend money and if it’s not doing well then banks will be hesitant. If the CEO wanted to change the numbers then he’d have shown more profits because he can get more money as banks will be excited to lend money to a growing company instead to a laggard company. The interest rates will be less if the company is showing more profits (or business growth). If any slow growing company approaches a bank then the bank will ask them to pay more interest as the bank will not be confident on the business. If we consider $100M (close to 750crs) as LOC and if the interest rate is say 5% then BCG has to pay close to 40crs interest. If the bank is not confident on the business then it won’t give that much money and also it will ask BCG to pay more interest, say 7-8% or maybe even more.

    For the business to grow, additional funds are very important. Looking at the way the industry is changing, I think BCG is in a very good position to grow more but everything depends on how well the CEO and the management execute things.

    Diana Horton
    Registered Boarder

    Responding to # 11146

    The Biggest Advantage of being a Public Listed company is all the Luxury of taking advantages of QIPs, Warrants, Pref Allotments and all other modalities of Revenue Generation mechanisms and utilising the same at the Best interest of the company.

    In BCG situation, The Management acted in thier Own interest wherin, STUPIDLY, Allotted both the Pref Allotment and Warrants at a MEANINGLESS and ATTROCIOUS price in single digit.

    The Company UNDERVALUING itselves for the MEAN and GREEDY sake of getting warrants at PENNY levels… Pityful PENNY levels!!!

    ULITIMATE IDIOCY and Greediness to the core.

    If the same PW and PA were allotted at say at par Book value or higher three digits, then the Revenue generated would have been worthwhile.

    Here the Interest shown is ONLY in GARNERING the SHARES for SELF at Lower price (massive dilution at 7.7) rather than at Companies Interest or Share Holders interest.

    Its a Vast difference between say approximatly Rs 250 Crs (at pathetic Rs7.7) to Rs 2500 Crs Generation (Book Value PW, if allotted) from the PW allotment.

    If the PW allotment was raised at Book value and to real General Public retaliers and instituitions and not for SELFISH and Mean reasons, then, the revenue generated would have been so much big which could have been used for the betterment for the company.

    Here the MOTIVE of the Management is Totaly different.

    The so called BCG is not having enough cash/liquidity to take advantage of the current situation in the market could have been mitigated, If the Management really would have let the Market determine its own price.

    In order to get the warrants at Low price,and for Accumulation by all DIRTY means, The Stock Price has been kept under the WRAP – for years…

    So, cash and liquidity situation is rather a self inflicted one- by itselves – by the Arrogant, and Mean attitude of Needy



    Diana Horton
    Registered Boarder


    Coming to the issue of LOC

    This Hide and Seek Drama has been played since White- Oak days (mid 2018 onwards).Eventually WO was washed out, using the blame game on one of the exiting investors conviniently, quoting Sub Poena.

    We know the Management strategies and How Dirty, it has played so far. We do not know the ACTUAL Reason of WO pulled itselves off.

    Coming to the current situation of the LOC.

    So much drama…..

    So much Drama….

    So Much Drama….

    90% work done…. 95% work done…. 99% work done…. Covid… Audit… BDO… Conglomeration…1 year , 18 months, 2 year… Blah Blah Blah….

    The CEO on many occasions stated, it will be ready in 1 month, 2 months and so on and so forth.But, the reality is a BIG ZERO so far.

    When the Hyderbad team goes to the Office, the CEO conviniently shows some data to CONVINCE the share Holders. Not sure, How much data was MORPHED…. in my opinion, its a High probability.

    BUT, the Pathetic Real TRUTH is, the CEO HAS NOT SO FAR CONVINCED the LOC Funders so far, to get the LOC sanctioned – For HOW LONG?????? 1 year, 2 years, 3 years ????

    If the BOOK were clean as a WHISTLE then this kind of procrastination is a NO Brainer.

    If the Books are Filled with COBWEBS, then, such intense scrutiny, etc etc etc happens. Eventually leading on to Delayed Funds in hand- Once again leading on to the same vicious circle of Liquidity and crunch.

    So, Once again- not having enough cash/liquidity state- is rather SELF INFLICTED ones, because of the Combination of

    1. Hammering thier OWN market value for Selfish and Mean reasons

    2. Not able to get LOC kind of Funding – because of Book entries- Not stright forwards and possibly full of Cobwebs.

    All comes up to one thing- Attitude and Crooked thinking of the management.

    Fence Eating its OWN CROPS…


    Registered Boarder

    @rathi_b and team, please confirm if the docs showed 2 u guys 4r LoC were from goldman sachs or some other lender?

    Registered Boarder

    In a bull market which is only one of its kind in many many years all the managements of listed companies in their right frame of “business mind” like to see their stock prices zoom to dizzying heights but then there are some unique ones who are very happy in artificially keeping their share prices lower/subdued for their own vested reasons which totally lacks logic.

    With Airtel throwing its hat in the ring of digital adtech business the much bigger company like Reliance may not be far behind as they have already shown interest and intent in entering/competing in most of the digital business.

    So its time the management of BCG buckle up as the company not only faces the imminent threat of competition on the business side but also faces a takeover threat/risk from these corporate giants (theoretically and practically possible) as the stock prices of the company is languishing around Rs.8 with a total market cap of just Rs.400 crores which is peanuts in valuations compared to the size of its sales and profits as such an acquisition will give a headstart to the new entrant, all these due to the callous attitude of the management towards corporate governance which is taking its toll on the valuations of the company the management may be doing a very good job on the business side but if they ignore the corporate governance part not only does the investors suffer but also the company, the issuance of PWs to the chosen few at throwaway valuations was a very clumsy act on the part of management to raise their stakes through backdoor as alleged by many investors this may save the management from takeover after their conversion into shares (after 18 months) but there is always the chances of a slip between the cup and the lip if someone very big planned a takeover on the company in the next few months, the management is very happy and elated about the rapid growth in the number of retail investors over the past few months but if someone offered a price of say for example Rs.40-50 almost all investors barring a few will surrender their shares to that buyer, so the withholding of prices by artificial methods for whatever reason at these low levels for a prolonged period of time will only prove counterproductive.

    Its high time the management sorted out the remaining legacy issues at the earliest focus fully on growing the business at a faster pace along with quickly improving the corporate governance side too so that the perception about the company in the eyes of markets and investors changed for the better resulting in the stock prices attaining their rightful levels at the earliest.

    Registered Boarder

    The management/promoters are shooting on their own foot by continuing with the charade by not ending legacy issues quickly in fact it seems that they are very happy living with those problematic issues, all management’s are selfish to an extent but even in that the company’s shareholders as a whole gain by way of higher stock prices, higher dividends, bonus shares etc. but this management is totally clueless about what its doing and what is the benefit of deliberately keeping the stock prices depressed for such a prolonged periods of time?

    They have issued 2 preferential issues within an year at throwaway prices to a chosen few of their friends/well wishers as a means to gain back door entry for owning higher amount of stakes but yet are trying to keep the prices down by keeping the positive news flow taps closed by deliberately delaying the closure of legacy issues, there may be even a greater possibility that very vital news which can lead to the stock prices soaring are being deliberately suppressed.

    Its in the interests of all stake holders (from management to retail investors) that the share prices of the company is allowed to find its own real value at the earliest as it benefits all and hurts none otherwise there are big business sharks who will takeover the company overnight as its available at almost free of cost if considered the prized assets the company possesses.

    Registered Boarder

    Dear @Logan, thank you very much for your detailed information (#11146).

    Let’s trust the management with the anticipation of positive outcome. Meanwhile we need to find out the previous history of PW approval procedures and tentative time taken for other firms. Thank you again.

    Registered Boarder

    The promoters had enough time & opportunities to directly increase their stakes at a lower prices but all they chose to do is bring 2 preferential issues within a year at throwaway prices and diluted the equity of the company by massive quantities allegedly to their friends/associates/acquaintances to increase their stakes through backdoor but they are yet to release their own pledged stakes which is roughly 33% of promoter’s holdings & if they don’t get it released at the earliest then they risk their stakes & the company they fondly created/nourished to be taken over by big corporates who are entering the digital ad-tech space.

    This company is a “prime takeover candidate” as its stock price is already so low that it can be taken over by a rival company very easily even by its book value which is about Rs.50 now that Airtel has entered the digital ad-tech business it will try all routes (organic/inorganic) to grow & if it gets a global company with several prized assets spread across the globe at a price of Rs.3000 crores (at its book value prices) even then its very cheap as its real prices are several times higher than the book value but its available at such low prices only because of the management’s pathetic attitude towards corporate governance & it may be a deliberate ploy so as to keep the stock prices low for reasons best known to them but by doing such lowly & cheap acts they are doing a great disservice to not only retail shareholders but also to their own prospects, so its high time the game played for years of not allowing the prices to reach its “real prices” is stopped otherwise those playing the games will loose their company to some takeover tycoon.


    Registered Boarder

    Digital Ad Duopoly Of Google, Facebook Doesn’t Dominate In Fast-Growing Connected TV

    Is Brightcom into connected tv ads segment anyidea on this segment’s revenue

    Registered Boarder

    Dear @Logan – What’s your view on the ongoing rift between FB, Google and Australia’s News Media

    – Does this spread across the world

    – Will Google and FB end up charging higher for ads especially when the search is for News content

    – Does Brightcom, BLocal benefit from these events


    @hw_tw, to the best of my knowledge and somewhere i read, BCG works with Roku and Amazon in connected TV segments. BCG has made good presense in Connected TV ad segment long back when it was not even in limelight. That’s the good part of BCG, it captures market trends faster than others.

    Diana Horton
    Registered Boarder

    Dear BCGians

    I wrote a Response BLOG #11147 I was discussing about the Alleged cause of NO Growth Demonstrated by the company, that has been SHOW CASED.

    We discuseed the following

    “Responding to # 11146

    The Biggest Advantage of being a Public Listed company is all the Luxury of taking advantages of QIPs, Warrants, Pref Allotments and all other modalities of Revenue Generation mechanisms and utilising the same at the Best interest of the company.

    In BCG situation, The Management acted in thier Own interest wherin, STUPIDLY, Allotted both the Pref Allotment and Warrants at a MEANINGLESS and ATTROCIOUS price in single digit.

    The Company UNDERVALUING itselves for the MEAN and GREEDY sake of getting warrants at PENNY levels… Pityful PENNY levels!!!

    ULITIMATE IDIOCY and Greediness to the core”

    Its a Vast difference between say approximatly Rs 250 Crs (at pathetic Rs7.7) to Rs 2500 Crs Generation (Book Value PW, if allotted) from the PW allotment.

    Todays News by One of our Regional Competitor.. AFFLE:- They have come out with a COMBO of QIP and Preferrred at the PE what they are trading and are RAISING MAMMOTH 1080 Crs. On the contrary, here the Management has been PATHETICALLY Diluted thier holding by more than 50% at a MORONOUSLY peanut price of 7.7!!!!!

    And we are discussing the topics and giving explanations to-

    a. what was the cause of Stock Falling down

    b. Why there has been No Increase in NPs in the company etc etc etc.

    In my Multi Year Observations , alongside of so called Mini factors that has happened constitutionally, The

    ONE BIG MEAN PATHETIC GAME played by the Management, thereby

    a. Destroying their own reputation by Nasty Corporate Governance games
    b. Beating thier OWN share price to meagre levels
    c. Not letting thier own NPs to grow up

    All for ONE and ONE Mean SELFISH Reason-

    Increase thier SHARE HOLDING to Maximum at the cost of Dis respect to all Share Holders and PE Investors

    Modern Day- DAY light LOOT and Robbery……

    Fence eating its own CROPS


    Registered Boarder

    @hw_tw, I don’t know what impact those events have on BCG but the general trend is that many governments (US and Europe) are trying to put more pressure on big tech firms.

    I’m more worried about Apple’s upcoming privacy changes. Facebook and Apple are fighting about that. It impacts Facebook a lot which in turn may impact BCG also. Many small businesses advertise more on Facebook and Apple’s decision has made Facebook little nervous. Since BCG does more business in the US and since most people in the US use iPhone, I think it will impact BCG also.

    I agree with @anirudhreddy about BCG capturing market trends faster than others. When the trend in online advertising was shifting to programmatic, BCG adapted quickly by starting Brightcom. Then when GDPR was implemented in Europe, even though it was tiresome for everyone involved, BCG adapted to that quickly as well.


    Respected @Diana thank you much appreciated your views. Day by Day the fear is catching and latching on to us as we have invested very large chunk in BCG. As many ugly side of the BCG story so far is unfolded knowing or unknowingly i sense the illusions of the truth coming out should bot shatter the dreams and hopes of all BCG investors. I have noticee across social media platforms turning and speaking same language and with lot of confidence on the dirty games that are being played needs no evidence. I see lot of silence across investors at same time who seems to be confident few months back. I see @Rathi and Hyd investor team not getting dates from SKR for meeting. I see Axis is still not closed and no updates received so far. i see no trail so far of 32 crores PO money anywhere being mentioned by skr in confcall as it can easily be unblocked by court to be used and utlized to settle 17 crore total ots agreement amount. I see no hurry from exchanges to give approval to PW even with all documents being provided.I see SKR has kept mum silence on all the retail investors anxiety and fear. i see no definite and guaranteed timeframe of LOC, Consolidation being kept on hold and all plans are at standstill.

    @Diana please can you throw some light on some of my biggest fears:

    1) Why did skr choose reverse merger with LGS global and have not conducted independent audit on LGS Books to acertain Assets and Liabilities and their business and market share of software business. How come a Adtech company saw value in a software loss making company.

    2) Why did BCG not took direct route of primary markets through IPO and entered indian markets? My fear here is Did SKR sensed listing requirements from NSE ane BSE needs Audited books and transparent business ledgers across all its subsidiaries and not taken this route just to avoid Audit again of its books??

    Both in 1 and 2 there is clear understanding that both the options are avoided, in first they didnt audited LGS books and took calculative risk of their debts, assets, liablites and second neither got their books audited for listing requirements. If any of the option 1 or option 2 have followed, we may not seen what we are witnessing today. SKR conveniently blame LGS for its Bank debts they carried till now and write off it made of 150 crores in 2013-2014 for their standalone business. By any means and arithmetic of equations and using different theories, this should have never been happened or done. Whats the Links between LGS Global and Ybrant Technologies from 2012 till 2021?? One of LGS board director still exists and have good share in BCG as a NRI in US, dont want to reveal the name.

    My next question:

    SKR blamed PE investors for their offloading and exists during 2013 till 2018. Did anyone know how these PE investors helped SKR acquiring couple of subsidiaries and aquisitions to the tune of multiple of 100s of crore one of them is Lycos and OMS in israel. We all know what is the valuation of OMS today. It alone has valuation of 2 to 3 Billion dollars. But how did the PE investor’s treated during their fund term in Ybrant everyone knows. They have been shown exit doors at penny levels of their investment made in Ybrant way back in 2009. Is this ethical by any means? How did these innocent PE became Villan and created a fictions story around their exit. Where did theri combined 23% stake gone??

    Next question:

    Why did SKR never mentioned about Lycos aquisition issue to investors untill in 2016 chapter 11 bankruptcy filled? This was not a overnight issue which came suddenly in 2016, this was way back came to management attention in 2013 and 2014 where Duam demanded more amount and EBITDA percentage brought in picture?

    What does Lycos doing now? Why this was never closed till now? From 36m$ it came down to 16m$ and now 8m$ the recent settlement agreement he had with them. Why Koreans put on blame here even with new parent Kokau?? Why this settlement never took on priority and settle international arbitration and create market value in itself???

    Why it was so important to keep real market for BCG away by showing these Legacy issues???

    Next question:

    Why CEO is partial to Muskann in alloting PO and PW?? CEO of Muskaan was an Ex Independent director in Ybrant way back in 2016, was this fact hidden from investors? thats there is vested interest in the allotment??

    Next question:

    Where are the 32% pledge shares now?? I have seen original Axis Agreement document of 2019 it was only some percentage with Axis out of total 32% and not total pledge of promoters?? Where are these pledge shares lended to and for what? What role does the Finvest capital has in the entire trail?

    Next question:

    WHERE did Goenkas disappeared overnight or lets say over Oct-Dec 2020 quarter without a trail in shp?? Who acquired their total stake of around 18% at 5 levels???

    The 59 entities of PW allottees has one of the known name and linked name to LGS global ex owner. where LGS people coming back to BCG now again???

    Why there was No independent Audit so far till date not been made on all its subsidiaries excluding OMS EY Auidt. What is the issue making it all public for the benefit of larget market participants as the only reasons why the real market not trust the numbers. Why there is no seriousness shown to get the real market makers who can give compelling valuation against the listed global adtech players.

    Next question:

    What are the others Doard of Directors doing? What sense they are making adding 0 value to the management and still taking salary? Why are we not inducting a senio board of directors or an Independent Director from Tech industry like how Tanla has recently done to strengthen its team.

    I remember in early 2019 or 2018, there was a resolution passed by board of directors to empower SKR for taking any decision for company on all their behalf?? why so and what made such one man show requirements for a global company. What Is Mr vijay Knachrala doing in US? Why dont someone from OMS Israel dont join parent firm as director? What stopping in doing segregation of dutities??

    There was an audit conducted by WO during their funding plans way back in 2018. It was said Duam issued subpoena to WO and they back out. But what stopped BCG to make their Audit report public and what made them again go to new auditor BDO for restructuring and consolidation of their subsdairies??? What was the entire trial of events happened internally we never got to know.

    All in All day by day, CEO making things complicated for??? PW?? Axis?? Duam?? Competition?? Self benefits?? Retailer participation?? What is so fearful to make things black and white. If there is value and everyone believes so, then the biggest beneficiary will be ceo himself, why this waiting game from last 5 years??? One issue resolved another created. To manage what and whats has been achieved to feel proud just to spoil ones own image and making investors exit?
    Patience have its own limit and once we out play patience somepoint if things doesnt change, lets do what is in best interest of all investors. I am ready for all the support @ Diana and Team needs.

Viewing 20 posts - 3,481 through 3,500 (of 3,873 total)
  • You must be logged in to reply to this topic.