Tagged: General Discussion
May 28, 2021 at 1:16 pm #11740
@ Raj,Since its not like TDH, It will not run like Tom, Dick & Harry. Jokes apart, Let me tell you lengthy sermons have already been given by ace analyst on the forum Mr Logan & Mr DH with regards to the fundamentals & Company’s business. I am no match in front of them & Since you have asked me, I am compelled to reply with whatever little half baked knowledge i have,My version-How I look at this scrip is its a turnaround story & It will at least take another 2 to 3 years to manifest as all turnaround stories boom along with time. This scrip is no different. Therefore your question why this price is not increasing is invalid & appears silly as far as i am concerned. My simple rule is enter in a scrip not for its price but for the value that it holds & certainly this scrip holds a lot of value from the perspective of financial parameters it holds which have already been discussed in length, So no need for me to repeat. Price rise will certainly happen if any material development takes place like release of pledged shares, Promoter buying from open market, Selling or acquiring of stake, Announcement of hefty dividend etc. Loc materializing & Perpetual set of good QOQ & YOY numbers. Also note its highly undervalued & Has a long way to go & It will 100% go up with time. In fact, Its a buy all the way up to to Rs 60 its present book value & A time will come that it will not be available even at 100. All the best.May 28, 2021 at 1:30 pm #11741May 28, 2021 at 2:05 pm #11742odyseeRegistered Boarder
Kris, your comments contained in #11740 are well received.
Thank you for the same.
I do, however, believe this is not really a turnaround story in the true meaning of the expression.
The group has achieved decent turnover and profits, both pre-tax and post-tax, over the last few years. It’s just that the the management has been bogged down in dealing with and settling legacy issues in the listed holding company, and the infamous Daum saga re Lycos Inc.
The free cash flows have been negligible, and time and effort and money has been utilised to clear inherited bank loans ( NPAs) and arrive at an ‘understanding’ with the new owners of Daum.
I agree with the ‘turnaround’ concept in that the management is finally at a stage when it can resume growth, invest in newer businesses and hopefully have access to the long sought Line of Credit against receivables which can result in much better cash flows and higher free cash. Of-course, the Daum payment may well have to done to truly settle all outstanding issues, even though the bank settlements are done and BCG is now a ‘debt-free’ company.
The stigma of poor governance may well take some time to eliminate, and regaining confidence and trust of the markets may take a year or two as you indicate.
I just hope, for every retail investor’s sake, that the 2 to 3 years indicated for proper value realisation is achieved within 12 to 18 months.May 28, 2021 at 9:25 pm #11743May 28, 2021 at 10:27 pm #11745
Coming 17th-20 June 21 we should get an intimation wrt Qtly results ending 31 Mar 2021 & will get declared around 25Th-27Th June 2021. Not expecting much out of it, Like last time qtr 2020 end Pft was 5.18cr Standalone & Consolidated around near to 108 crs. A few crs plus here & There can push the stock to price lvls of 12-13. At the same time if we get good news wrt to release of pledged shares, Hefty dividend along with the much anticipated Acquisition, Then the price story will definitely change & can shoot up very fast that too non stop. Wish good luck to all. Cheers !!!!May 28, 2021 at 10:38 pm #11746
@ Odysee,very well articulated. As far as value realization is concerned, The earlier it is, Good for all stake holders. As far as legacy issues are concerned, It will get settled in due course of time, Loc is not far off & Pw amount near to 300 crs is in the kitty will do the trick. I think we should get very interesting & Good news in the upcoming con call after Q4 results or along with the Q4 results. Lets keep fingers crossed till then. Cheers!!!May 31, 2021 at 8:15 pm #11747May 31, 2021 at 11:58 pm #11748jagasworldRegistered Boarder
From where the shares will be allotted to employees ? from existing shares or how does it work ? Can anyone explain please.5+June 1, 2021 at 8:30 pm #11750RajRegistered Boarder
Friends, will there be further dilution with esop? What’s the CEO thinking? Request others to share your thoughts..6+June 1, 2021 at 9:57 pm #11751
One of the key concerns of existing Investors, including Promoters is dilution. Dilution occurs when a company allots new primary Shares. In case of ESOPs, dilution can occur in two ways:
In the % shareholding of existing Investors, at the time of issue of new equity shares on exercise of Options; and
In the form of total value of Investors’ holding, in case new Shares are issued at a discount to the prevailing market price.
However, companies can protect its Investors from dilution on both counts by appropriately structuring their ESOP Plans. Some of the approaches companies can evaluate are:
Protection against dilution in % holding:
Dilution in existing % holding can be protected in two ways:
Implementing the cash settled stock options plan (“Phantom Plan”); or
Use of secondary Shares acquired from the secondary market or existing shareholders.
In the Phantom Plan, no shares are issued to employees. All vested Options are settled by paying cash. Since no new shares are issued, the existing shareholding % does not change and dilution is avoided.
Another way to avoid dilution is to implement the ESOP scheme using secondary Shares. In this mechanism, a company can procure existing shares from the market (in case of listed companies) or from existing shareholders (say the non-Promoter shareholders) and use them to transfer to employees when they exercise Options. In this case also dilution is avoided as no fresh shares are created but the existing non-promoter shareholding gets reshuffled. This route can be implemented by setting up a Trust to facilitate buying and transfer of shares.
Protection against value dilution:
Dilution in value in the hands of the Investors can be avoided by adopting either of the following ways:
Issuing ESOPs at Fair Market Value (“FMV”); and
Issuing ESOPs having Performance linked vesting conditions
When a company issues ESOPs at FMV, the Company is receiving same amount of cash as it would have received had the shares been issued to any investor or public. Consequently, no dilution occurs in the existing value.
Similarly, if the Options are granted with a Performance condition, no Options would vest unless the given performance is achieved. If the Performance condition is in the nature of increased profitability or market capitalization, then the dilution impact is more than compensated by increase in the overall value of the Company. In other words, if the vesting conditions are such that ensure future value of 95% of shares is more than the existing 100% holding, the Investors would not mind diluting 5% to employees. Some examples of Performance conditions could be growth in Topline, EBITDA, Market Capitalisation or FMV.
To conclude, while implementing the ESOP scheme, companies can address the dilution constraint through appropriate mechanism. If the Promoters believe that growth of the company cannot be achieved without retaining its critical employees, the choice with them is whether they want to own 100% of a low growth company or 95% of a high growth company.
So we can safely conclude that the company indeed has a choice to implement ESOP without dilution. Hope Our Promoter chooses wisely. Cheers !!!June 2, 2021 at 10:10 pm #11754June 2, 2021 at 10:15 pm #11755June 3, 2021 at 7:01 am #11756rajeshmkRegistered Boarder
Thanks for the info4+June 3, 2021 at 11:45 am #11757rajeshmkRegistered Boarder
Lately there are lot of videos updated on you tube
recommending to buy BCG5+June 3, 2021 at 10:28 pm #11758Investor_2022Registered BoarderJune 3, 2021 at 11:10 pm #11759palash231Registered Boarder
As per my knowledge- for ESOP , the BCG trust
may collect the equity share from secondary market i.e it is one kind of “Buy Back”. And it may be 5 to 10% of total equity (as on base from Subex).
ESOP is good for Employee as well as share holder also bcoz some good amount of share hold by the BCG trusty and it is generally locked some time , may be 1-2 years at the Employee. So liquidity may be decrease for some period of time at the market.
I SPECIALLY THANKS TO SKR FOR LOOK AFTER THE STOCK AFTER THE LONG LONG WAITING TIME.June 3, 2021 at 11:17 pm #11760June 5, 2021 at 2:00 pm #11763jmathewRegistered Boarder
Just my view below I may be completely wrong.
1. PW investors accumulated more during the last few months with the help of operators and management
2. PW investors paid 25% so both of them met their requirements.
3. Management cannot continue with the price suppression as the time is running out for them.
3. They need to release the news on pledge share release, LOC, Daum closure and audio firm acquisition
4. A good full year result with decent dividend
So the up move started prior to the good announcement
It is a joke to see that 400 CR profit making global digital firm’s market cap is at 500 CR where it suppose to be minimum 15K cr to 20K cr market cap
cheers and best of luck.June 5, 2021 at 11:03 pm #11764jmathewRegistered Boarder
Noticed that more than 25 cr shares are traded in th last 3 months. Average delivery around 60 percentage. Seems like many weak hands are exited and probably majority of sgsres are gone into the kitty of needy.just my view only. Looking forward for a closing above rs 13 next week.June 5, 2021 at 11:10 pm #11765jay69Registered Boarder
The plan for issuance of ESOPs may be a prelude to listing of BCG shares in international stock exchanges (possibly Nasdaq) 2-3 years down the line as by that time the company would have significantly ramped up its turnover & profits by getting a sizeable amounts of money in the form of LOC & after that the merger of all international subsidiaries may be done, since most of the key employees of BCG’s digital adtech business are located abroad especially in Israel & USA so this ESOP attains even more significance, in a way the issuance of ESOPs is just a beginning for much more bigger things to come.
- You must be logged in to reply to this topic.