Tagged: General Discussion
August 11, 2021 at 2:58 pm #12358
There has not been any official communication about whether FPI’s are eligible for receiving bonus share or not. I don’t think the company would be obliged to clarify the same since the FPI allotment is still not done and it is approved in EGM and pending approval from Exchanges in order to complete the allotment. The moment the allotment happens (as long as it happens on or before the record date), they would be eligible for bonus and the fact that in the EGM notice that they have increased the provision for allocating bonus share by 5.98 Crore (Sufficient to allocate 1:4 bonus for the 11.96 crore shares under FPI allotment) seems to suggest that they are planning to allocate the bonus share (BCG is expecting preferential allotment for FPI to be approved by exchanges on or before 20th August) and have provisioned for the same.August 11, 2021 at 3:09 pm #12359nitin_asceRegistered Boarder
The intent of bonus was to force PW holders to convert their warrants by paying money. We have already seen evidence of that.
I think FPI will not get bonus shares, however if they pay money in advance and get shares by 17th Aug, I think it will be good since BCG will have lot of liquid cash now for acquisitions.August 11, 2021 at 3:47 pm #12360
Reply to #12328
Long term investors need not be carried away/disheartened by the share price movements which is a reflection of market mood (Greed/Fear)as the prices would align with the underlying value of the stock sooner than later as long as the fundamentals w.r.t the business has not changed.
Even with outlier Multi baggers like Apple(Increased from listing price by 1623 times) and Netflix (Increased from listing price by 481 times), the share price had fallen multiple times. Apple had fallen by 80% TWICE!. Netflix had lost 25% in a single day FOUR times and in a four month window has lost 80%, but still ended up as multi baggers.
hence ONLY thing that we long term investors should do when stock can potentially lose by about 50% in a short span is WAIT and DO NOTHING.
“To make money in stocks you must have –
1. The vision to see them
2. The courage to buy them and
3. The patience to hold them.
Patience is the rarest of the three.”
– Thomas Phelps in 100 to 1 In The Stock Market
As a final thought, here is a good article to understand the VIRTUE of DOING NOTHING (After doing the homework of picking the right business/stock to invest)and a study by Motilal Oswal on stocks that have given 100x or more returns in Indian context..August 11, 2021 at 9:40 pm #12361
@vgsatwork, thank you for sharing your very positive and sensible approach to research and conviction based investing (not trading).
For the record, my brief comments contained in the post referred to by you, were singularly addressing the small retail investor who may not have had the capacity or conviction to hold for the really long term.
Quite a few of us on this forum have stayed invested for 6 to 8 years. But if you have been keeping track of the total number of small retail shareholders over the years, the dramatic increase in numbers has taken place only in the last 2 years.
An entry in single digits, and a very extravagant and almost heaven-sent ‘exit’ opportunity giving almost obscene returns would be tempting for many newer entrants. But the kind of short term targets being touted on all chats was both misleading and unrealistic.
And, of-course, the first meaningful correction created turmoil in the minds of many newer investors who rued missing the chance to sell at the peak. But that’s human nature, and for every 1 long term investor, there may well be at-least a 100 short term punters.
But over time, as one gains experience in the market, and gain and pain is absorbed and understood, then the wisdom of ‘long term investing’ with belief and conviction based on fundamentals, so well articulated in your post, will be better understood by the relatively newer retail investors.August 11, 2021 at 9:54 pm #12362
The category of investors who have invested in recent up move would fall into momentum investors (investors who invested in this stock because someone else or from someplace they heard about the share and have seen that quite a few people are trying to buy this stock). These kind of investors are buying into this counter with the hope that it would keep increasing and that they can ride the momentum. But any stock price would go up and down and that is how the market is and the price movement is almost never unidirectional. One way such investors could protect their interest and limit their downside is to put a trailing stop loss sell orders (if there is a downside move above a given % point). But even such strategy is futile when the stock price fluctuates widely on a given day..August 12, 2021 at 6:34 pm #12367ramganesh1982Registered Boarder
Bcg has always bounced during the March – July phase every year in the last 2 – 3 years but one distinct factor that will add to stability of the stock this time is the cash flow. Bcuz of this sole factor market sentiments can have a positive impact. If I am rite & if the company plans to retain this momentum I think they will time the publishing of acquisition news just around the bonus share ex-date . Results this time might play a role in sustaining levels . We are definitely in for a good positive up ride . Now everything is in management hands to retain the momentum and I think they are aware of this very well (mentioning this based on the updates to bse in the recent times ) . The number of updates company has made to bse in the last 3 months is way more than what it did last year which is a big positive from corporate governance perspective . All the best for fellow retail investors !!August 12, 2021 at 6:45 pm #12368ramganesh1982Registered Boarder
I have couple of requests w.r.t the webpage .
1) Can we have a feature to go back directly to a desired page ? . I remember page 198 has the link to discussion related to other stocks . Now I don’t have this link saved. Finding it difficult to switch to page 198 everytime.
2) can we have the other topics of discussion as a sub-hierarchy at the bottom of the page or somewhere ? Something like one home link to see all open discussions including bcg’s
3) saving login options will also help
Not sure if we have all or any of these already but adding my suggestion here
Ram2+August 12, 2021 at 6:58 pm #12369hw_twRegistered Boarder
The IR page of BCG website seems to have recently updated … It now has all the latest and old information which investors can go through
One thing which especially caught my attention is the ownership document of Brightcom Israel / Online Media Solutions … an important document for the people who keep saying that BCG India doesn’t own OMS, IsraelAugust 13, 2021 at 5:58 am #12370RajaRegistered BoarderAugust 13, 2021 at 12:22 pm #12371myainvestRegistered Boarder
Many talk about cut off date for bonus as 17th Aug i.e, the last date to be eligible is they should buy shares by 17th Aug, so by 20th they will have shares in their demat account and hence be eligible for bonus shares.
I find it bit strange to believe. I believe someone could buy the shares even on 20th and still be eligible for bonus shares even thought the shares will be credited in their account only on Monday
Does anyone have a view on this ? I could be wrong too!1+August 13, 2021 at 12:31 pm #12372
Missing topline growth in BCG
Despite all the positive news flows and up move in share price, the sore thumb for BCG continues to be topline growth with topline growth in low single digits. If they can start showing 20%+ YoY topline growth, that is when market would feel comfortable giving higher valuations like it’s peers – Affle, Magnite, Pubmatic, Tradesk, etc,.
Given that Management has had 65 crore (25%) of PW money + 30 crores of PI Money (Last year Preferential issue to Muskaan) of cash, I sincerely hope that they show atleast 15% YoY topline growth in Q1 FY22. That would do a world of good to stock prices than the other news items that are lined up. Once people start seeing growth, the trust on management to deliver growth would increase tremendously..
Hoping for a great topline growth today…5+August 13, 2021 at 2:11 pm #12374
@vgsatwork, the management did not have that 95 crore to utilise in 20-21.
The Muskaan preferential money was frozen till March 2021 because of the Axis Bank settlement. The PW money only came in early 2021.
But yes, the company must show healthy growth in the top line from now on, as most past issues are resolved and the cash flow position has improved.3+August 13, 2021 at 2:16 pm #12375August 13, 2021 at 11:08 pm #12378August 13, 2021 at 11:30 pm #12379LoganRegistered Boarder
Disappointing results compared to last year’s. Last year for Q1 there was a growth of 20%+ but this time it’s flattish. Only good thing (though not to be too excited about) is the 8% growth in revenues in digital advertising.
All adtech companies did very well this quarter except BCG. Usually 1st quarter will be good for BCG and I was hoping to see better results.August 13, 2021 at 11:34 pm #12380VALUEBUYER001Registered BoarderAugust 13, 2021 at 11:37 pm #12381
I suppose we have to wait for the next conference call to get some bearings on the current performance.
The last conference call was pretty upbeat and by all indications that applied to the June 21 quarter as well. At least as far as expectations went. So we need to understand from the management as to what this slip between the cup and lip was.August 14, 2021 at 12:19 am #12382Rishi_lifeRegistered Boarder
What is this other comprehensive income which is 38 cr… And because of that the total comprehensive income raises to 144 cr. Because of which QoQ increased by 20 cr and YoY increased by 38 cr.
Results are lower than expectation.3+August 14, 2021 at 7:06 am #12383RajaRegistered Boarder
Results are on expected line, this was indicated by the management that multiple EPS are expected in future.
The growth ingredients are getting in place one by one,
New company doing well on growth-being acquired
New business head, etc.,
I have a feeling that this forum is also infected by vested interest, not a surprise considering the potential of this home grown digital marketing global company- having potential to be listed in NASDAQ.
Just compare this result with subex, mastek etc., also compare with their current PE.
Genuine investors enjoy the growth in coming days.
Best wishes to all12+August 14, 2021 at 1:58 pm #12384LoganRegistered Boarder
(I’m speaking on behalf of all the forum members here)
@Raja, it’s surprising (and little funny tbh) to see your comments – “I have a feeling that this forum is also infected by vested interest”.
Just 2 or 3 realistic comments and you come to this conclusion. You have to be careful when you make comments like that because people can use the same comments against you. They can say that you are hiding the facts and talking only about the “potential” positives that haven’t even materialised.
What I and others have talked about are based on numbers that are in front of us and what you are talking about are assumptions that “may” or “may not” result in growth. I don’t understand how bonus and ESOPs are ingredients for growth. I can understand about LOC, acquisition, being debt-free etc but not bonus and ESOPs.
More importantly Subex and Mastek aren’t really competitors or peers of BCG. Just because some websites and some people put these companies under the same category doesn’t mean they are real peers. If you compare results of “real peers” of BCG then you’ll understand that BCG didn’t perform well.
We didn’t even criticize the company or the management, we just shared our opinions on the results. We didn’t say it was poor either, we said that we are disappointed. There’s a big difference between those two. We have never doubted the efforts of the management team and we have supported them even during tougher times than this. It’s like a football match where the match ended in a draw when we were hoping/expecting a win. Though we’ll be disappointed with the result, we’ll not stop supporting the team, especially when they are putting all the efforts and when they are having problems (mainly cash flow issues).
Everyone can’t be positive for the sake of being positive. When BCG didn’t perform well in Q2 and Q3 we made similar comments and that time no one made a comment like you. Also we were very happy when BCG did well in Q1 and Q4. We even asked the management/CEO about the lack of growth in business in the conference calls too.
For BCG to be properly valued, the business also has to grow. If there’s no growth then the market will give below average valuations. Efforts and results are completely different. Markets won’t give proper valuation just because the company is putting efforts, it’ll appreciate them but ultimately it’ll look at the results. Some people give targets of 500, 1000 or 1500. For 500, considering PW and bonus shares, the P/E will be more than 100. Without growth how can we expect to see those valuations? Companies that have higher P/E multiples have higher growth rates.
We all want BCG to trade at very higher valuations but that should happen based on merits and not based on hypes or assumptions. The management team is doing everything that they can to grow the business, sometimes it’ll result in good growth and sometimes it’ll be flattish. We have to accept that fact.
Everyone talks about NASDAQ all the time but there also BCG will be valued well when it shows good growth rates. Before getting listed there, they should get a proper rating here and for that to happen the company should show good growth rates.
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