Tagged: General Discussion
June 5, 2021 at 11:16 pm #11766
With a turnover of about 500 million USD which is easily possible after getting LOC (right now around 365 million USD in Sales & Profits of 65 million USD) BCG’s valuations will run into several billions of dollars (at least in the range of 5-10 billions USD) going by the valuations of Nasdaq listed stocks in the same sector like Pubmatic Market Cap – 1.35 billion USD Annual revenue -148 million USD Net Profit – 26 million USD & Magnite Market Cap – 3.7 billion USD Annual Revenue – 221 million USD Net loss – 53 million USD (All Results are for year ending December 2020)
So one can see that in comparison to the above mentioned companies BCG sales & profits are much more bigger so even at a very conservative valuations its market cap should be around 5-7 billion USD if its listed in the Nasdaq over & above that it has also invested heavily in future technologies like AI/ML which will fetch more valuations if the company is successfull in those ventures apart from these known ventures BCG also has sizeable stakes (though at the moment undisclosed) in several other companies & ventures in the space of digital adtech & AI/ML which when disclosed will add further value to the sales, profits & market cap of the company.
In short todays market of BCG (Rs 500 crores) is less than 1% of its potential market cap.
#CopiedJune 7, 2021 at 3:26 am #11767
Folks, One more Excellent development. Now company growth on war footing. Cannot even imagine the growth that will take place from now on.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/6a8c9c5c-65cd-4cd9-80ab-4e7493d16864.pdfJune 7, 2021 at 8:52 pm #11771RajRegistered BoarderJune 7, 2021 at 11:19 pm #11773
Year 2011 dividend declared was Rs 1. I.e 10 yrs ago. Hope this time it will declare Rs 2-3. That means slowly & Surely company will keep growing in the right direction,LOC & Acquisition will change the game forever. It will keep generating, Creating wealth in times to come. A must stock in one’s portfolio. Cheers !!!June 8, 2021 at 7:48 am #11774odyseeRegistered Boarder
The announcement of consideration of dividend along with the audited results on 28th June 2021 is very good news indeed @kris. But we have to be realistic in our expectations.
The face value is Rs.2/- per share. Last year 2.5% dividend was declared, equivalent to 5 paise per share. I very much doubt it could jump from 2.5% to 100 or 150% ( Rs 2 or 3 per share). Unrealistic to expect a 100 crore plus dividend payout when an acquisition is on the cards and Daum still needs to be paid off.
A prudent ( though not conservative ) but consistent dividend policy would be better appreciated, particularly with a much larger paid-up capital post the conversion of the warrants ( whenever that happens).
I just hope that the much talked about Line of Credit actually materialises to enable the company to rapidly ramp up its existing and new businesses.June 8, 2021 at 8:21 am #11775
This year dividend may be around 10-20 paise per share which is a decent amount as the company has to conserve its resources for business expansions and fresh acquisitions.
The company may sometime in the future afford to pay even 2 Rs dividend if sales & profits are substantially higher than the current levels say for example if the company earns a net profits of about Rs 1500 crores then its quite possible to give a bigger dividend.
Instead of putting pressure on the management for a higher dividend investors should force the management to think about big value creation in the company by increasing turnover and profits (organically and inorganically), investing in cutting edge technologies, improving corporate governance and investor relations as these will catapult the share prices of the company to much higher levels and that will be the biggest reward for all the investors and shareholders.June 8, 2021 at 8:58 am #11776June 8, 2021 at 12:46 pm #11777LoganRegistered Boarder
@Investor_2022, I didn’t share my thoughts on ESOPs because we don’t have any information on that. I think we’ll have to wait till the conference call to get proper information. In the board meeting they’ll just approve the ESOP plan but I don’t think they’ll share complete details. Whatever opinions I share on that topic will only be speculation or guesses.
Generally investors see ESOPs as a good thing and the market has also reacted positively.
Regarding the Audio Ad news, it’s a good move by the company to update and invite everyone to the event. All these years these things used to happen at the subsidiary level and we didn’t get to know about all that. These things change the perception about the company, especially it’s stock.June 8, 2021 at 1:00 pm #11778June 9, 2021 at 12:05 am #11779sac6310Registered Boarder
Sub: Board Meeting Update
Further to the board meeting intimation dated May 31, 2021, this is to inform you that in its
meeting scheduled to be held on Wednesday, June 09, 2021, the board of directors shall
consider the following item:
To authorize Mr. Suresh Reddy and Mr. Bradley Cohen to represent the Company’s interests in
the discussions and negotiations concerning any business development, joint ventures,
acquisitions, mergers and financing opportunities for and on behalf of the Company.June 9, 2021 at 7:52 am #11781drjayseeRegistered Boarder
So, it’s very clear that Miami based “Digital Audio” acquisition is going to happen soon (may be before the webinar on 23rd). Since “Mr Cohen” based in US who has vast experience of more than 18 years with BCG may handle the business. It’s a great developmental news. What an amazing back-to-back media release by BCG. Congratulations & good luck to all BCGians. Let’s forget about all past negative thoughts and almost everything came to an end to pave the way to show BCG’s real value (BCG may approach the first target of it’s BV soon). LOC will be the next outcome which may also happen soon….
I personally thank @Logan, @admin and many other long term highly knowledgeable members who have shared your insights on BCG from which I have gained a lot of insights and ultimately managed to buy significant qnty since one year. Many thanks again to all the members and Congratulations for the forthcoming nonstop mela 🙏👍👌🌺🍰🍰🍰…June 9, 2021 at 7:19 pm #11782RajRegistered BoarderJune 9, 2021 at 7:57 pm #11783
1. Employee Stock Option Scheme namely, “Brightcom Group Employees Stock Option Scheme – 2021” and implementation of the same through the “Brightcom Group Employee Welfare and ESOP Benefit Trust” (The Trust).
To provide an interest-free loan by the Company to purchase BCG shares by the Trust from the secondary market.
Total number of Options to be granted under the Scheme shall not exceed 5% (Five percent) of the paid-up equity capital as on March 31, 2021.
Exercise price shall not be less than the average market price at which the equity shares of the Company are acquired by the Trust.
Such loans to the ESOP Trust shall not exceed the limit of 2% (two percent) of the aggregate of paid-up share capital and free reserves of the Company.
Kindly requesting senior boarders to throw light on these points.
Attachments:June 9, 2021 at 8:19 pm #11785Optimus Prime 06Registered BoarderJune 9, 2021 at 8:42 pm #11786
@optimusPrime06. I fully endorse your view.Humongous effort in imparting knowledge that too selflessly. Thank you is a very small word for Sir Logan as well as to Admin. Gratitude! Gratitude & More Gratitude. Request Admin as well as Logan Sir to partake their views on the recent developments in the Company. As usual Cheers !!! from my side to all the folks on this forum.June 9, 2021 at 9:42 pm #11787adminKeymasterTopic Author
@Logan – Thank you from the bottom of my heart for being the guiding light to all the investors who follow you here. You have fought against all the odds and have been consistent in your views throughout. You took us through an amazing journey, selflessly imparting your knowledge about the company & the industry in detail and helped making everyone self reliant.June 9, 2021 at 10:15 pm #11788June 9, 2021 at 11:34 pm #11789
BCG will move like an “unleashed spring” though there will be lots of ups & downs on the way which is usual for any stock it will gradually move upwards as more & more good news & new corporate developments happen in the weeks & months ahead.
This may be a prelude to US listing (Nasdaq) as these ESOP’s will be given not only to Indian employees but also mostly to employees abroad as BCG’s big chunk of Income comes from Israel & other countries.
So most probably after consolidation of the international subsidiaries & streamlining of business operations/accounts etc of the company & also after the stock prices reaches a certain levels (say for example Rs. 200 or 300) the management may list the stocks in Nasdaq or similar reputed international stock exchange in the form of ADR’s at a premium according to the valuations of US listed peers like TTD, Magnite, etc which may lead to a small dilution in the share capital but will bring in several hundred million US dollars of funds which will be useful for further rapid growth & expansion of the company both organically & inorganically.
Even if BCG dilutes 10% of the equity for listing its ADR’s in the US markets 2 years down the line (in 2023) at a valuations of say about 5 billion USD it will easily get 500 million USD which is a huge amount for fresh acquisitions etc as mentioned above, for this to happen the company’s management at the earliest should improve its image & perception drastically.June 10, 2021 at 4:52 am #11790vgsatworkRegistered Boarder
ESOP announcement is very positive for the stock as
1. It is not resulting in any dilution of equity through fresh issuance, but by purchasing from secondary market
2. Because they are earmarking upto 2% of paid up equity + paid up capital and the ceiling for the # of shares is set as 5% of the paid up equity capital as of 31st March – This would mean that the company would be acquiring shares from secondary market through employee welfare trust by spending upto 70-72 crores to purchase upto 2.5 crore shares – This move would support the share price above 28 rupees per share
3. Due to the proposed ESOP, retail shareholding could get reduced by up to a maximum of 5%, a HUGE plus for price stability of the stock
4. Since this purchase from secondary market cannot start till 16th July, the share price would move up and consolidate ONLY around the 28 rupee mark from the current 13.44, an assured 100% appreciation from current level and about 250% appreciation from the previous base of around 8 rupees, sufficient enough jump for institutional investors (mutual fund) to jump into this counter, which can keep the price momentum up
5. Spending of this 72 crores would not create cash flow problems given that the company has about 65 crore from their recent PW money…
6. At around 28-30 rupees, PE multiple would be a respectable 3-3.5 instead of current value of 1.5, which would allow big players to get into this counter..
Finally looking the timeline window of these announcements (potal ballot window is right within annual results and they have acquisition, LOI financing, dividend related long pending news and the mention of company authorizing CEO to take decisions surrounding this) could only mean that they have lined up news flow to support the price action upto about 28-30 rupees
For the patient long term investors, now is Time to finally reap the rewards ..June 10, 2021 at 7:45 am #11791
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