November 11, 2019 at 12:58 pm #222m4max1979Registered Boarder
Nice to hear from you after a long time 108BG. While I am sure your info is correct, in my opinion it is not correct to compare with others right now because everything boils down to CMP and wealth created/ lost for shareholders. When CMP reaches at least book value then probably it would be wiser to compare with other horses in the track. I am just trying to assess the issues and my opinion of timeline for resolution because without that I doubt CMP will even reach double figures.
1. Closure of debt – I remember SKR in Feb concall had said that he would close all deb latest by Sept 30, 2019 but it seems things have got delayed. He said in last concall that they had paid off Canara bank but we do not have the noc yet. I am not sure about this but SKR had said that there was a delay in payment to canara bank which had caused a problem in loan closure. My guess is that the recent sale of promoter shares was done by canara to close the loan but this is just a guess. Axis Bank loan also could be repaid by this month end I hope.
2. LoC for company – I still have my doubts on this and will not believe till the company shares a sanction letter. An unrated company in default with banks and fighting a court case does not get a loan at least in India. Moreover, even if a financial institution shows interest, what collateral does the company have except promoter shares which are valued at less than Rs. 60 crs now and even then half of it is pledged. This in my opinion is a catch 22 situation for the company because if they jack up the price then daum gets riled up and if they keep the cmp where it is then lender gets jittery. I do not see a way out of this but maybe SKR knows better.0November 11, 2019 at 2:48 pm #227
Thank you all for the welcome. Nice to be back among friends.
Views expressed belwo are just my personal views as i see from the information on the public domain and what the company/management has said in the past.
My understanding is that company certainly has reached a verbal understanding if NOT AN AGREEMENT on the different termsof settlement with Daum which includes the amount to be paid.
It is not being settled because comnpany does not have immediate free cash flow to pay Daum.
If LOC comes then Daum issue will be settled quickly.
If LOC does not come or is delayed then also i see a possibility of it being closed by March 2020 end from may be internla accruals.
LOC is a dicey one.
Not easy to get when company does not have any hard asetts or tangible things to show for except some receivables to the tune of nearly 900 crores that too scattered in 15-20 countries and lender being in USA i suppose.
Not easy to establish how much they are worth net net and hence lender can’t quantify his risk.Under those circumstances no lender is going to lend 100 or 150 miln USD that too when the company has defaulted on previous loans with the banks which may have been there due to legacy issues etc etc.
However 2 things are very clear.One is that management has made lots of bad decisions and that has resulted in hundreds of crores of cash burn out if not thousand of crores.Under that scenario it also means that if those cash burn outs due to wrong decision making were not there company would have had enough of mon ey to pay Daum and also pay decent dividend along the way and still keep some cash for healthy growth rate.
I think if Lycos comes back then March 2019 year end accounts will need to be redone as Lycos revenue will have to be included. so eps will go up. Another thing to rememebr is that if and when BCG pays Daum then that 150 crore or sowrite off for Lycos comes back to BCG. So actually BCG will gain net net in its balance sheet as the amount paid i think wont be as high as the write off.
May have forgotten few things.
Look forward to your comments and thoughts.0November 11, 2019 at 4:38 pm #229VALUEBUYER001Registered Boarder
Nice inputs and analysis 108BG0November 11, 2019 at 5:56 pm #230
My pleasure0November 12, 2019 at 9:11 am #266Avi
108BG…Few months back u had given a complaint to PMO office and you informed time and again that they are working/ investigating Brightcom group based on your info. I am sure by now u must have received FEEDBACK. Plz do inform us also what is their findings. Thanks0November 12, 2019 at 9:26 am #268
Thanks for asking this question.
It is still with the top of the top authority in India who are looking at it.
I am advised not to ask them and let them do their work as they are unlikely to tell any thing till they conclude things.
I am also told that such things are very extensive like the SCI judgement running into 1045 pages recently and requires lawyers team to examine it.
I have not received any further info either way yet.
I wish i had the letter in my hand telling that every thing is fine and i could put it here on the site for the information of every one.
Let us hope that it is not far away.0November 12, 2019 at 9:32 am #270Avi
Thanks BG for your prompt reply. Appreciate.
I think its over 3 months since. I am sure Thru your high contacts Some secret info would have passed over. Some hint of where BCG stands would be welcome.
Thanks again.0November 12, 2019 at 9:36 am #271
It will be advisable though not to jump to any conclusion and make any presumptions.
Complaint has been accepted, is with top authorities now for some time who certainly cant and wont be sitting on it and very diligently doing their work.Acceptance of a complaint should not make any one to jump to any conclusion or make any presumptions.
We dont know what the initial findings are which made them take the complaint to the highest authority in India for having a further look at it and primie facie accept our complaint.
I have my views my reasons due to which i lodged a complaint and authorities accepted it and consider it worthy of having a serious look at it.
That is my opinion just from out side. It does not mean any thing in terms of any irregularities etc at THIS STAGE.Let us wait for the outcome. I do hope for the sake of all the retail long term investors that every thing is fine and above board.0November 12, 2019 at 9:41 am #272
You dont need to have any high contacts as this governement works for its citizens and no secret info is passed out or can be passed
as the department and the officer with whom it is , no one would dare approach him i think except FM OR PMO and PM.
I as a complainant can enquire its status by calling him on direct line or sending an email though. But i will wait for them to complete their work as such things can be very extensive and take lot of time.0November 12, 2019 at 9:45 am #273
It has been nearly 5 months since i lodged that complaint. It has crossed many hurdles and checks to reach where it is now for the last 2 months or so.0November 13, 2019 at 7:00 pm #383Investors bcg
I am planning to add more for long term is it advisable, my averages will also come down0November 13, 2019 at 7:07 pm #384
Have a look at zero or hero thread.It will help to decide.Investing is a very
personal decision that only an investor can make for him or herself knwoing total personal and company situation.0November 13, 2019 at 8:01 pm #392adminKeymasterTopic Author
Hello BCG Investor,
Thanks for showing interest in the new forum. To add to what 108Bullguru advised, here you can see views shared by knowledgeable investors of BCG for everyone to take an informed decision. Please go through each of the topics and discover things which are new to many of us.
Admin0November 14, 2019 at 2:25 am #399DeepakRegistered Boarder
Any one have idea when the circuit filter going to be 20%.which day the bse release the notice of circuit filter every month?0November 14, 2019 at 10:57 am #414Raj
Affle at 1700. Still can’t understand why bcg is dragging to come out? How long is the wait, only SKR has to say..0November 14, 2019 at 11:17 am #418
That puts more salt on the wounds of long suffering BCG shareholders.
Makes us more determined to hold and add more.0November 15, 2019 at 8:17 am #461SpamfortressRegistered Boarder
Good morning friends. Any updates on the con call? I am hopeful that this upcoming con call will be different from the previous ones, in a positive way (compared to the empty rhetoric, type of con calls, I mean!)0November 15, 2019 at 9:28 am #470Shoumik
Just keep on adding while the intrinsic value keeps on building quarter on quarter. You are getting a US Dollar for rs 3. Let them keep the price low for our sake. I don’t think I could have added this huge quantity if it was priced reasonably and also not if the price was not kept this low for this long period of time. Last time it went to rs 7 in april 2019 i had 14 lacs shares and since then i have added another 4 lacs and now sitting tight with 18 lacs shares. I am very happy to do that and want to keep on adding each quarter. I am a banker in the sme loan department and trust me I have seen lots and lots of balance sheets none as attractive as this one. We all are sitting on a good stock. Cut on all your expenses and buy as much as you can of this company as this is going to reward you with great returns in the times to come. Also bring this one to the notice of your families and friends through your whatsapp groups so they to can benefit as well in the near future.0November 15, 2019 at 3:53 pm #503Shoumik
Today was an excellent day for buyers like us. Keep the good work going. Just keep on buying and be patient. Don’t get distracted by noise.0November 15, 2019 at 4:06 pm #504
How many did you buy dear?0
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