Tagged: General Discussion
September 13, 2021 at 11:39 pm #12594
This Peshwa Acharya person is so naive, he’s willingly joining a fake company (on an executive role) without consulting with students of WhatsApp University. He at least should’ve asked those Twitter warriors who know everything about the company just by looking at the stock price of the company. He was a board member for a year and still he hasn’t learned anything. I don’t trust this person. He’s joining a food company which cooks numbers. The CEO of the company doesn’t know anything and he’s just a chef who cooks numbers.
On a serious note, this is a very positive decision/step taken by the management team/CEO to appoint someone with vast experience. They are appointing him at the right time (with growth and acquisitions). Good developments are happening and will be very interesting to see naysayers come up with new BS theories.September 14, 2021 at 8:49 am #12595
Happy to see Mr. Peshwa Acharya taking up active role in BCG. Thanks to SKR for bringing him on-board at this critical juncture when the company is poised for an hockey stick kind of growth.
Mr. Peshwa doesn’t need any introduction, he is a respected personality and his credentials and achievements are all available in public domain for anyone to see and understand.
As BCG grows big it is important to have more hands joining SKR / Vijay and strengthen their executive team. I was expecting this to come from the new acquisitions, but it is also important to fill certain gaps and also strengthen their existing team.September 14, 2021 at 9:20 am #12596
Little surprised to see another round of preferential allotment/preferential warrant is being issued even as the share price is within 10% of last preferential allotment to FPI. Ideally I would have been happy if this dilution came at higher valuation of around 50 or so as opposed to current market price of 34 something.
But it does indicate that the company is doing some planning in terms of the timelines involved in completing all the formalities and readying a warchest, which is good from chasing growth standpoint.
Preferential warrant now means promoters could be increasing their stake to retain management control post recent dilutions and planned/upcoming dilutions. Hence, expecting fairly large PW size in favour of promotersSeptember 17, 2021 at 4:18 am #12611
With the previous FPI cancelled and new one coming in @ 37.77 is a good news as the new base valuation is based on previous day’s(15th sep) closing price.
I am not sure if the warrant allottee shankar Sharma is the same Shankar Sharma of first global. If it is, then it means finally BCG is in the radar of biggies.
But this entire exercise would drag their timelines by another 2-2.5 months to raise this money and no further dilutions is likely before this year’s AGM. Not sure if the acquisition of Indian conpany is going to get delayed because of the same of the same, but they have managed to increase the amount that they are raising through the his preferential allotment by 200 crore (over what they had initially planning to raise through the earlier proposal) with slightly increased preferential issue size to FPI and 1.5 crore preferential warrant.
Purely from corporate governance standpoint, I would have expected the company to intimate the market the moment they had decided to cancel the FPI due to potential issues that they foresaw. Even though market would have panicked for couple of days(till the revised offer price/size is announced), it would have improved BCG’s corporate governance credence manifold. But, they had withheld this info till they finalized the revised offer price/size. From that perspective, I am little disappointed as they had missed their chance to show their improving corporate governance standards.September 17, 2021 at 11:29 am #12612September 17, 2021 at 11:34 am #12614September 17, 2021 at 1:22 pm #12615jay69Registered Boarder
@vgsatwork The company has not committed any mistake by not informing the shareholders about the changes in the proposals of the preferential issue as whatever it has done is in the best interests of both the company and the shareholders, if it had announced the cancellation of older PI without readying the newer one it would have sent a very negative messages to the markets in fact it would have only strengthened the hands of detractors and negative minded people.
The management has always disclosed even the smallest of developments with regards to the company especially for the past few months which only proves that the corporate governance has improved tremendously and will be even better in the times to come.
So the changes done by the company with regards to the prices and quantity of PI is a very good move as its bringing in an additional sum of about Rs.200 crores which will help in boosting the business of the company even more.September 17, 2021 at 1:50 pm #12616
I am not saying that the company has done something wrong. Disclosures of this nature only goes on to show how transparent the management is with the shareholders.
If I wear the hat of a critique, company’s communication says clearly that they were expecting to get into legal troubles due to initial pricing of the offer factored in bonus for FPI’S. They were not very transparent as to whether the FPI’S would be eligible for bonus issue when they had announced the preferential allotment to the exchanges. It is only in the detailed fine print of the postal ballot notice that one came to know that they are provisioning 2.99 crore more than the initially communicated amount towards bonus share issuance which roughly correlated to FPI’S getting bonus share even as the clarity was not there to the market. When the going is good, people would tend to overlook such gaps. There was nothing wrong about what they did since the postal ballot notice had all the details w.r.t provisioning for bonus. But from corporate governance and transparency perspective, those were big gaps as the common investors were in the dark as they did not know the true price that the FPI’S were going to pay for the shares since it was not crystal clear as to whether they would get the bonus or not. If indeed the FPI’S were alloted bonus shares, their effective investment price would have been lower by 20%, which the investors would not have taken lightly, though all of them(supposedly) read the fine print of the postal ballot notice and voted aye for the sameSeptember 18, 2021 at 2:26 pm #12620
Ramco Systems zooms 91% in 5 days after investor Vijay Kedia picks 1% stake
after some months brightcom zoomed 200% after Shankar Sharma picked up 1% shares (lol just for fun)September 18, 2021 at 6:00 pm #12621jmathewRegistered Boarder
After the recent developments, it is just a matter of time for BCG to trade at decent pe. The market is waiting for the Q2 result and the name of the targetted company which BCG is going to acquire. US audio firm acquisition news is also expected very soon. At EPS of rs 8 ( forward-looking after Q2 result ), BCG should be rerated to a minimum pe of 20 by end of this year if not more. 4xfrom here is very much possible in the next three and a half months. Cheers.September 19, 2021 at 9:40 am #12622September 19, 2021 at 6:06 pm #12623AbhishekRegistered BoarderSeptember 19, 2021 at 10:53 pm #12624
My views on the recent Preferential shares and Warrants allotment
– Company is able to bring in same set of investors to pay higher than before in just a matter of 2-3 months. This shows how much confidence these investors have on the future growth of this company. In fact some of these investors have opted for a higher quantity than before which again shows their increased confidence
– Apart from the existing FPIs company is able to bring in Mr. Shankar Sharma as investor, who is one of the top investors in India and is very popular in media and in investment circle. One of the wishlist item from our old long term investors community that some large fund houses or a big prominent investor to be part of BCG
The additional funds will help the company in different ways like…
– For additional cash in case of increased valuation of Indian DM company as it is also growing during this period or to use these funds for growing existing business or to settle Daum or could be even for a fresh acquisition.
– Any payment to the DM company in the form of shares will now happen at a minimum price of 37.5 or at a higher level as the share price will be moving up
Mr. Shankar Sharma’s entry would be helpful to BCG in multiple ways like…
– Increased media coverage as we are already seeing now. This would lead to increased awareness all across the investment community
– Probable investment by other large investors / fund houses etc; or atleast BCG will be under their radar waiting for Q2, Q3 results
– Probably decreased manipulation by operators
Finally, if we want to pick negatives for argument sake and to scare investors … we can say promoter’s stake
in terms of percentage will be decreasing and hide all other facts like
– The number of shares held by promotors hasn’t come down
– Whereas the value of the their holdings in terms of rupees is increasing
– We can also hide the fact that their pledge shares percentage is going to come down.September 20, 2021 at 11:51 pm #12625
The CEO has been so insensitive towards naysayers these days. They are not able to come up with conspiracy theories as the CEO is not giving them any chance. How dare he do that?
First he paid off all the inherited debt using the company’s own cash flows and then he appointed a well respected person like Mr.Peshwa Acharya on an executive role in the company and now he’s making a famous investor like Mr.Shankar Sharma to invest money into the company.
Mr.Sharma is not buying shares from the market but is subscribing to warrants which means the money goes into the company which shows that he has done all the research/analysis and that the company has provided him all the relevant information (about business, financials etc).
(I have mentioned only the developments that have materialised. There are many other important developments too which once materialised, will make naysayers even more jealous)
People sold BCG’s shares when the price was in single digits because of these naysayers. Without knowing anything properly these good for nothing people said the numbers were fake, the company was a shell company, Brightcom is not part of BCG and many other nonsense things. Every serious investor should be careful about these type of people. They pretend as if they know everything but all their theories will be based only on guesses. Most of them are delusional and they make up lies and they start believing those lies. They never understand logic/facts as they don’t have the capacity to think differently.
Few examples –
1) Without understanding how auditing works, these people will comment that the numbers aren’t audited.
2) Since the price is low, they think the company must be a fake company.
3) Company has changed its name few times so it must be a fake company.
There are many more and I’ll talk about them later. This applies to every company and not just for BCG.September 21, 2021 at 7:26 am #12626bhalothia9Registered Boarder
It will be better that we do not spend time in writing or reading all this about naysayers or people who have criticised company earlier, instead we should be positive and talk, read and write about what’s good. These days, Mr SKR is publishing so many articles on AI, we should discuss and try to find what company may be doing in AI.September 21, 2021 at 5:02 pm #12627adminKeymasterTopic Author
@Logan – The third point which you stated “3) Company has changed its name few times so it must be a fake company”, was the reason given by the moderator of Valuepickr forum to lock the BCG thread.
I was the reason why they locked the BCG thread as last year I was posting about important events in Valuepickr BCG thread as well so that more investors benefit out of it. They summoned me saying I am biased with positive side only, and asked for my identity proofs and the reason why I should not be banned. I provided all necessary evidences, and they left me saying I should not be posting biased posts. The same day they blocked the thread as well with the same reason. That incident/moment was my lowest point in my investing journey with BCG as it questioned my abilities. That the founders of Valuepickr forum are not thinking well about the company, but I stood my ground and continued here.
I am waiting for the day when they are forced to reopen the thread again.September 21, 2021 at 6:28 pm #12629jay69Registered Boarder
Dear @admin you deserve a million salutes for the role you have played to educate & safeguard the interests of small shareholders who got to know genuine info about BCG through this wonderful forum due to which they got the conviction to buy, hold & even add more shares to their portfolios when none was believing the fundamentals of the company just because it was available at a price which was way below its real & intrinsic value, even though it has risen by manifold in the past few months but still it has to go a long way to reach its real & deserved valuations.
Sooner than later all those who doubted the fundamentals & financials of BCG will get a very tight slap on their face when Mr.Market accords huge valuations to the company which it truly deserves, till then let such delusional people talk or think whatever they want.
The shareholders of BCG will have the last laugh & go all the way to bank.September 22, 2021 at 8:34 am #12630PBBRegistered Boarder
Request the members to have a look at Vertoz advertising LTD a listed company. It is a programmatic advertising company offers digital advertising and monetising Solutions. I come across this stock as a peer to BCG. It’s a very small company available at ₹99 close to its 52 week low. Could be a good stock in the coming days? Please Share your thoughts on this.September 22, 2021 at 11:05 pm #12631Investor_2022Registered Boarder
Freshworks reported a 53% surge in its revenues to $169 million in the six months that ended June 30, 2021 compared with revenue of $110 million recorded in the same period last year. At the same time, losses declined sharply by 83 % to $ 8.9 million. The company was valued at $3.5 billion when it raised $150 million from Sequoia Capital, CapitalG and Accel in November 2019.September 24, 2021 at 1:34 am #12634
@bhalothia9, I get your point but you should also consider the journey we have been through. Now it’s all good and the stock price is at a reasonable level (obviously way below its intrinsic value) but the situation was not so smooth all these years. Just because we are happy now doesn’t have to mean that we should forget the past and just discuss only good things. We should continue things that affects both the company and the stock.
I’m least bothered about naysayers but my problem is with their approach. They don’t even have common sense and don’t understand even basic stuff but they write nonsense things about the company and many people give importance to them. They can’t tolerate the stock price going up and they won’t hesitate to write/comment fake things about the company. Some people get influenced by that and they start taking silly things seriously and waste everyone’s time. You must have seen it in many conference calls where some people have asked the CEO whether the reported numbers are genuine or fake.
We should also consider the type of crowd that BCG is attracting. If that crowd was mature then we could’ve ignored many things but that’s not the situation. Right now most of the people who invest in BCG look only at statistical data like P/E, P/B ratios and they ignore what’s important. Some don’t even understand the difference between profits and cash flows. Some people consider investing in intangibles (improving technology) as some crime. Just one or two LCs and you’ll see comments saying numbers are fake and the company is fraud etc. Some people think that if you don’t pay dividends then all the profits are fake. Some people think that all the assets are cash and they think that assets minus liabilities mean cash reserves.
If we don’t talk about all these then people won’t understand what the reality is and they won’t understand which is important and which is not. Best example is DAUM case. People hyped the DAUM issue and were saying survival of BCG depends on that but was that the reality? Losing Lycos didn’t matter at all for BCG (business-wise). Even valuation-wise, people wrote that the stock price will go up only if BCG gets back Lycos but the stock price went up even without getting back Lycos. If the crowd had not given importance to Lycos-DAUM back when the case happened then the stock never would’ve crashed. If no one talked about the reality of DAUM issue then people still would’ve given unnecessary importance to it and the upside of the stock would’ve been limited. Now even without Lycos the stock can reach it’s intrinsic value.
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