Tagged: General Discussion
December 19, 2021 at 3:25 pm #12983odyseeRegistered Boarder
@Logan, I do not think that you can even imagine the level of confidence and belief that you were able to instil in the more astute and loyal members on this forum.
Over the years, doubts persisted but the underlying conviction managed to survive the turbulence one faced as new challenges emerged. And then Saul Goodman appeared; followed by Logan.
That was the turning point!
Doubts diminished, and conviction grew.
As one gained further detailed insights on the company and the industry ( so painstakingly prepared and presented by Logan), the faith and conviction steadily increased.
Today, the ‘bleat of the sheep’ ( I’m guilty for that one ) has been replaced by the ‘song of the lark’.
So, take a bow @ Logan. We are all very grateful for your presence and your delightful and meaningful posts.December 20, 2021 at 8:16 am #12984odyseeRegistered Boarder
Good morning @Logan, @Admin and the rest.
In continuation of my post addressed to Logan yesterday, I left out my response to Logan’s comments on the CEO and his (usually) brilliant moves in managing the business and countering obstacles that arose from time to time.
I must have attended almost every single conference call that was held post the quarterly results, and one always came away with a sense of admiration for Mr Reddy and his depth of knowledge about the industry and the business.
His patient and in depth replies to investors’ queries and concerns, some of which would test any CEO’s patience, were impressive indeed, and I always marvelled at his ability to keep his cool. And his very obvious sense of compassion for the older ‘small’ investors who had reposed their faith in him.
I also saw a number of his past recorded interviews, and his writings on tech and the application of tech in our day to day lives, and his vision of what the future holds in that respect.
And I was sold! Hook, line and sinker!
But I could never fathom why a company that was consistently earning Rs 8 plus per Rs 2 fv share for the last 5 years annually, was commanding a market price in single digits.
Not one financial luminary or analyst or market ‘expert’ would have anything positive to say about the company or the management. But the conviction remained, and then this forum so ably managed by Admin saw the introduction of Logan nee Saul Goodman, and many other contributors.
That was a blessing, and the conviction suddenly had a capital ‘C’ in front of it.
And then the genius of the moves made by Mr Reddy and his management team in the last 2 years or so , became evident.
When the company became debt free, we all knew that that was a defining moment for BCG and finally, after many years of struggle, we were truly on the move.
The induction by Mr Reddy of well known and well respected professionals at very senior levels ( who have spent decades in building up their reputations) in the recent past has added immensely to the credibility of the intent and stated prospects of this hitherto grossly underrated enterprise.
Hence, @Logan , I agree with you 100%, that it has been the genius of the unrelenting Mr Suresh Reddy and his timely moves that has brought BCG to the current sweet spot, and the market and its players are sitting up and taking notice of this genuine Indian Multinational which is a very smart player in a true new age industry.December 26, 2021 at 5:00 pm #13003RajaRegistered Boarder
Check this out. Good luckDecember 30, 2021 at 11:04 am #13016
anybody rceives link for tomorow’s AGM?3+December 31, 2021 at 10:07 am #13017PBBRegistered Boarder
I have searched all my mails for AGM link. But I could find only link for downloading AR and procedure for evoting. Unfortunately by the time I sat for evoting process was closed as I was late by an hour. I guess the link to join for AGM might be sent to only for those who have completed evoting.
Any one got a mail after completion of evoting with joining process for AGM?
If it is possible to join AGM with out participating in voting kindly share the link.December 31, 2021 at 10:37 am #13018LoganRegistered BoarderDecember 31, 2021 at 10:46 am #13019kiranjRegistered Boarder
You can still use the click here link in the bottom of the e voting events page to join AGM today2+December 31, 2021 at 12:00 pm #13020
i could join late and skr said about utilisation of new acqusition. All team has new tool to get new business.3+December 31, 2021 at 3:34 pm #13021
CEO Address to shareholders – Main Points – 1. Historic AGM 2. Internet embedded in our life, existence. 3. Digital Media bought/sold online algorithmically (Programmatic solution Brightcom) 4. Need very few employees to scale … leading to efficiency … 5. Preparations on for META-VERSE … Long term 6. Linked In is growing very fast … looking for reasons… 7. Search … Search Intent taking centerstage … 8. Debt Free status achieved in Mar 2021 9. Fortune 400 Company. 10. Trust setup for ESOP 11. Bonus issued 1:4 12. Pref issue for aquisitions done. 13. Brightcom Audio division launched – rapid growth in audio segment 14. Identified couple of companies for signining LoI for aquisition – To reveal January – Board meeting to allow CEO and Brad Cohen to authorise for the same 15. Execution of existing plans. 16. Free Cash Flow (FCF) and RoE – To be areas of Focus 17. RoE Target – 25 – 30% increase 18. Truly grateful for long term shareholders 19. To adapt global best practices for accounting – To reveal in January 20. Focus on developing next generation platforms 21. Consider “Effective Capital Allocation/deployment” very important. Q/A Session Main Points 1. Google Partnership has put Company in different orbit. 2. FCF will be utilised for further growth – organic inorganic, % of this FCF will be paid as dividends. 3. Partnership with Facebook and Amazon to be solidified. 4. Mediamint strengthens Backend and allows company to offer related Services – All global teams will have the tools of Mediamint to use for overall benefit of the Group. Mediamint has many clients and the relationships will be maintained. ( 4 hrs ago ) |December 31, 2021 at 5:09 pm #13022January 2, 2022 at 11:32 am #13023
Check out the latest Fund investments in BCG from Morningstar and MSN money sites
There is a difference in Morningstar and MSN data both in terms of quantity and list of funds. Morningstar is reporting highest qty of 72.8 lakhs compared to 56 lakhs last month. But it is also not showing CREF Stock Account holding qty of 5.35 lakhs … Adding this the final figure would come to 78.15 lakhsJanuary 3, 2022 at 6:23 pm #13024
On the guidance numbers for the Q3 and Q4 quarters of this year, SKR has re-affirmed that we are on target to reach these numbers … check 25:30 from the AGM video
Also, I see that there are only 2.3k views till date … request everyone to spend some time and watch it asapJanuary 4, 2022 at 9:23 am #13025January 5, 2022 at 9:54 am #13028JackSparrow13Registered Boarder
There are some basic things in investing, which get missed if we discuss about a share all day/all seasons/all year long. I think a reiteration should help.
1. BCG is just a stock, we are not employees of BCG.
2. It is a seasonal business, with some strong quarters & and some weak. Stock prices will follow same sentiment. So, it had rallied in Q2 results, will start rallying after a few days (or maybe end Jan) in anticipation of good Q3 results. Then it may fall to a reasonable PE perhaps (10-15) during Q1 & Q4 (Simple guesswork, like air conditioner share rally in summer, agricultural shares would rally if there is good monsoon).
3. BCG is currently at 20+ ROCE, so ideally should trade at 20+ PE all year around. But this will happen a few years later. Currently, it is a viewed as a trader’s share which was trading at <1PE (cheap to buy) from where it rallied to 30+ PE (so sell).
4. Till now, I have not talked about any acquisition etc, other triggers, which will fund growth.
5. A very simple question needs to asked – Do I trust the management or not? If yes, give them 5 years to execute their vision. If no, sell and be happy.
6. Portfolio allocation discipline is must. If while buying Brightcom was 20% of portfolio, and it has become a 15 bagger. You need to be honest to yourself about your ability to accept volatility. Or you track the business so closely, you should be able to run before others figure something is going wrong.
7. All I am saying, that since many have been sitting on huge returns, anxiety is normal seeing huge volatility. You need to decide if you can stomach volatility and sleep peacefully at night. There is no shame in selling or paring down your portfolio, but reasons need to be more personal, rather than some imaginary fake business shit.
8. Finally, learning from my own investment mistake, the urge to sell is highest when a share which has stagnated starts rising. But this is often the start of a business’s growth phase after long. Bought CDSL around 200, sold at 750, thinking “market is cyclical”, so CDSL has to fall soon. This “will fall in future” share is now trading at Rs. 1500+ Sigh.January 5, 2022 at 11:51 am #13029
Some people are still talking negative about the promoter stake being low or getting reduced.
There are many explanations about the stake getting reduced only in percentage terms and the actual number of shares held by promoters remained same… let’s not discuss this further
Coming on to the worries related to percentage coming down, the general perception or the fear is that promoters are not interested in the business
My take on this point in case of BCG’s promoters …
– SKR and VK haven’t sold a single share
– To my knowledge both doesn’t have any other interests … they are not running any other business, they are not investors in any other company
– Both are full-time dedicated to BCG and are actively involved in day to day operations of the company … SKR also taking up CS activities these days
What more commitment we need from the promoters
If we go by bookish knowledge and the s/w derived analysis, yes promoters stake falling below certain percentage is negative … but we as humans need to look at it a bit more deep … request all to not blindly go by these theories / rules and instead apply your own logicJanuary 5, 2022 at 1:43 pm #13030
Regarding Audio adtech company acquisition, I guess we can derive some clues from the statement made to exchange … It says either SKR or Bradley Cohen will be given authority to sign LOI.
As mentioned by SKR in AGM, Satish Cheeti and Peshwa Acharya might have shortlisted two companies … These companies might be based out of India or Israel … depending on the company decided by the board one of them will be given the permission … In case of US based company VK might be the designated person
In terms of the advantages, my take on this
– Technology wise both will be good … Both Israel and India has a good technology people and the startup eco system is buzzing in both these countries
– Israeli based company would ease any future integrations with Brightcom’s products … would also help in acquisitions and integration of product companies in future … any equity dilution if happens would be at subsidiary level
– Indian adtech would help BCG to capture Indian market … easy to integrate with MediaMint backend operations and also cross sell … Would add revenues to BCG’s India business and strengthen its balance sheet and probably change market sentiment about its Indian business
Anyway, it is just a thought and I might be totally wrong … We will get to know more details about it tomorrow … As an investor, we will be happy either wayJanuary 5, 2022 at 8:49 pm #13031
@hw_tw, can’t agree more on promotor’s stake being low. To add on that my question to people do not agree on this – how does it matter? Take example of Infosys, promoter’s stake is around 13% and look at massive wealth it created for investors. So why it should matter when business is good, zero debt, organically and inorganically company is growing. BCG is very undervalued and as per it’s financial it should trade on 80 PE. I believe it’s matter of time, and BCG will definitely achieve adequate valuation in next 1 year. Remember what Shankar Sharma tweeted on BCG – “Sir, the next time you see a trade like Amzn, Aapl, Indusind, Twtr, Tata Motors, HFCL,at multi year lows, tell us.We’ll buy too”.
I laugh:”You never wud because you’d say”Too risky’.
In hindsight,all great trades seem easy. But they weren’t so then.
Ad-tech?January 5, 2022 at 9:31 pm #13032January 6, 2022 at 12:12 pm #13034RajaRegistered BoarderJanuary 6, 2022 at 7:19 pm #13038
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