June 19, 2021 at 12:42 am #11810Investor_2022Registered BoarderJune 20, 2021 at 7:38 pm #11811LoganRegistered Boarder
Sorry for the late reply @Investor_2022. I don’t have opinions on last week’s price movements but these days the sentiment has been good because of many factors like ESOP plan, PW approval, Audio Ad related news, Results (and dividend) and also the rally in prices of small cap stocks. Always sentiment plays an important role in price movements – for both short and long terms. This time last year also we saw good sentiment (corona rally) and the price went up from 3 to 13 but that time there were 2 obstacles – one was Oak selling and the other was Axis case in NCLT. The Axis case caused a lot of uncertainty and people were worried too much as to how long it will take. As you know, I didn’t/don’t give importance to things like Axis and DAUM but I know the importance of closing those issues. Closing those issues will bring a clean image to the company and there’ll be nothing to point fingers at. When the image is clean, the downside will be limited and when the image is bad, the upside will be limited (of course when the whole market goes down image doesn’t matter for many small caps stocks and even large caps fall).
Traders (good people) and Operators (bad people) follow fundamentals and when the sentiment is bad or normal, they try to make 1-2 rupees, when the sentiment is good, they’ll look at little higher targets but when the sentiment is extremely good/positive then they’ll look at very high targets. We saw that with Subex, when the company got a clean image, it went from 6 to 60+ within months.
We saw something similar with BCG also. If you check BCG’s price history, it crashed from 70-80-90 levels to below 3 after the 150crs write off and that time there was uncertainty but after seeing good results from the company, the price went to 60 levels. That time the company was not even making half the profits it’s making now. Then as you know, the loans turned into NPA, promoters’ shares were also pledged, DAUM case happened, PE investors sold a lot of shares and now Axis case. These things won’t bring good image to the company and hence the low valuations and when few good things did happen, the upside was limited because still there were pending issues yet to be closed. Even growth in business was not considered when there were many issues pending.
Also immediately after closing off issues the price may not go up and it’ll depend on the sentiment. Closing Axis case didn’t have an impact immediately because PW was not yet approved, there were issues in the dividend payment and the pledged shares are not yet released/revoked.
Now we have only the DAUM issue, I don’t know whether people give importance to it like they did back when the bankruptcy thing happened but it’s better to close it and have a good image. DAUM case was the reason for downfall of the stock price but we’ll have to see whether closing it off will have an impact or not.June 20, 2021 at 9:22 pm #11812June 22, 2021 at 6:03 pm #11813PBBRegistered Boarder
How come the forum is so quite when the fire works have just commenced in BCG. I have expected lot of messages here these days. Good luck friends our long waiting has come to an end and we will be having happy days only in BCG from now on….8+June 22, 2021 at 7:04 pm #11814jmathewRegistered Boarder
BCG’s eps, Rs 9 (FV 2), and Affle eps is Rs.50 (FV 10). If we split Affle FV to Rs 2 then EPS per share will be 10 and the share price is rs 950. So BCG with eps 9 trading @ 16 and Affle with eps 10 tradings at rs.950. BCG is present in many countries and much bigger than Affle. Bcg’s next stop will be at its book value. I expect many investors will shift from other stocks to BCG and will be able to make a multifold returns. Loc and audio firm acquisition news are expected at any time. 85-90 % of the shares are with Top 2000 shareholders.
Note: This is not a buy or sell call. Please do your research before investing.June 22, 2021 at 8:47 pm #11816
I think all members have already discussed enough and learned from one another.
We remained together through the crucial times and important outcome was we did not give away our holding. Now we are bearing the fruits of patience, silently 🙂
This forum never allowed to discuss any fancy targets nor pessimistic views but only things that were factual.June 23, 2021 at 9:09 am #11817RajRegistered Boarder
Dear Admin, All the credit goes to you for initiating a forum like BCG and special thanks to Logan for educating investors on the adtech industry. Now that we are done investing in bcg, would like to request admin/fellow investors to discuss new futuristic stocks by creating separate forums for individual stocks and ditch mc forum.😂. I think we have one for vikas proppant.. Please advise. Regards.June 23, 2021 at 12:38 pm #11820Investor_2022Registered BoarderJune 23, 2021 at 2:36 pm #11821rahulRegistered Boarder
Do anyone have link to the vikas proppant forum? The one I belive I had was vikasproppant.in which doesnot seem to work.1+June 23, 2021 at 9:37 pm #11822
Vikas Proppant results declared, Top line improvement on QOQ as well as YOY But bottom line in a bottomless pit. Highlight is total change in Management, Totally Professionals on board effective date 23rd June 21. One of them is Subhash Chander Goyal an Electrical Engineer from BITS Pilani. A key point to note is that the company is DEBT Free. With the present development I think stock price will certainly remain STABLE here onward’s. If the new management puts its act together then sky is the limit for this stock as the scrip is into niche segment of Manufacture of Proppants. I wish good luck to the new management & Expect great returns on this stock. ADMINJI, I Have posted this as it seems vikasproppant.in is not there. Adminji Pls Bear with me one time.Thank you. Cheers !!!June 23, 2021 at 9:48 pm #11823June 23, 2021 at 9:52 pm #11824June 23, 2021 at 10:17 pm #11825vgsatworkRegistered Boarder
I don’t understand the logic of BCG issuing bonus shares when the business is needing lot of cash and for that they just has preferential warrants. Issuing bonus share of 1:4 would require the company to increase the paid up equity capital to 130 crores from the current 104 crores by investing cash. All these in the midst of cash crunch which has been hurting companies growth. Something isn’t adding up.
I am assuming they have already got LOC for 1000+ crores sce they are talking about acquisition, cash dividend and stock dividend along with FY 20 results. Otherwise, these news simply doesn’t make any sense4+June 23, 2021 at 10:25 pm #11826odyseeRegistered Boarder
@jagasworld, this is just capitalisation of reserves. And the book value ( and market price)get adjusted downward accordingly.
But in India, bonus shares hold a different meaning and are generally welcomed by shareholders, and post bonus the market price tends to move up irrespective of the book value adjustment.
The moot point would be the cut-off date, and whether the PWs get converted to equity after full payment prior to that, and if they qualify for the bonus shares too. Not clear how this will play out. It may well be only for the shares issued to date which means the convertible preferential warrant holders miss out. Just a point for consideration.June 23, 2021 at 11:08 pm #11827bjRegistered Boarder
I believe the Bonus will be positive for existing shareholders. As the dilution of equity stake of existing shareholders will be lower.
Earlier – around 50 crore shares (current shareholders) + 30 crore PW
With Bonus – 62.5 crore shares (current shareholders) + 30 crore PW
Meaning the equity stake of existing shareholders will increase.
Share numbers are rounded off, for easier understanding.June 24, 2021 at 1:03 am #11829
@kris – Thanks for your nice post #11822 on vikas proppants which I am holding as well apart from Subex. Actually I had launched a forum for Vikas Proppants(vikasproppant.in), last year but had to discontinue as there were no takers.
May be we can start discussing other stock ideas(especially hidden gems) in this forum if others have no objection. I will try to design in a way that it does not affect the BCG discussions and any subscription alerts. Due to my new job commitments I was not able to concentrate on it. Now that BCG has taken off (or showing signs), going forward I can afford to treat my office job a little lighter 😀June 24, 2021 at 2:13 am #11840June 24, 2021 at 6:08 am #11841RajRegistered BoarderJune 24, 2021 at 7:51 am #11842nitin_asceRegistered Boarder
One thing I could think of is to force PW investors to redeem their PW by paying balance amount before the bonus issue. The company might be seeking good opportunities and need funds. However if this is the reason than surely PW holders are not proxies of management.
@logan can you provide your views please.June 24, 2021 at 11:48 am #11845
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