Tagged: General Discussion
October 10, 2021 at 10:23 am #12750raviblkRegistered BoarderOctober 10, 2021 at 10:25 am #12749
We discuss a lot about Adtech but hardly anything about the media division of the company. BCG is foremost a media company even before it ventured into the Adtech business. Can someone throw lights on the list of media we own? is https://literally.media/ owned by BCG?
I’m curious about this because the websites owned by Literally are worth tens of millions of dollars and they seem to generate good revenue as well based on their traffic. I understand these websites are operated by the company but are they owned as well? If so, how stupid was the market to value the company for less than 500Cr for such a long time?
http://cracked.com owned by Literally alone generates a revenue of 24 million USD as per below. Not to mention, the profit margin will be much higher when both owned and operated.October 13, 2021 at 6:27 pm #12753jmathewRegistered Boarder
Some corection after a long run. I don’t think management will allow the MCAP to go below $1 billion . Hopefully we can expect q2 result in this month itself.5+October 13, 2021 at 7:25 pm #12754Investor_2022Registered Boarder
Do you mean some announcement will be done soon to avoid continuous profit booking?
I think they may publish Sept. ’21 shareholding pattern soon.
Last year, they published it on 08/10/2020.2+October 21, 2021 at 12:06 pm #12782hw_twRegistered Boarder
While I was expecting voting results or some acquisition related updates it is interesting to see today’s updated presentation on business overview.
Is this just a routine exercise probably done as part of AGM document or are they trying to convey something
Some thoughts on the intention behind this presentation
– Bring in more clarity to the new investors
– Showcase the different segments of their business, their partnerships they have along with their native Compass platform
– Going forward, probably they will show case the results split across these segments …might be a standard way of segmenting results for Nasdaq listing and making it easy for investors to compare with other DM companies … Those who has seen Magnite’s results can confirm this
– Showcase what offerings and clients they have now vs. the new acquisition…thus making it clear to the investors what value the new company is bringing on table in terms of offerings, clients, locations etc;
– It’s a presentation made for some analysts
– A combination of all the above and something beyond our thoughts
Looks like SKR is trying to convey something…time will tell on the intention behind this presentationOctober 22, 2021 at 10:28 am #12785whySharesRegistered Boarder
After BCG got out of T2T people could day trade BCG. So, past few days, it has become the favourite of speculators who trade for + or – 5% daily. In between the investors are buying. The game of the speculators should die down soon and BCG should be back on the path of steady growth.
This is just my opinion and I continue to buy BCG. You do so at your own risk.6+October 22, 2021 at 7:38 pm #12792adminKeymasterTopic AuthorOctober 23, 2021 at 4:18 am #12794October 23, 2021 at 8:14 am #12795whySharesRegistered Boarder
Here is a presentation that Brightcom submitted to the exchanges on 21 October 20215+October 24, 2021 at 5:30 pm #12799
I’ll list out some of the red flags of BCG and y’all can decide whether to laugh at that list or to take it seriously.
1) $1B Market Cap
2) More revenue, profits, cash outside India
3) Token Dividend
4) Had few legal cases (2)
5) Name changes
6) Latest preferential Issuance lead by retail (Sebi considers them as FPIs but only genius people consider them as retail investors)
Point 1 – All these years I thought that low stock price (market cap) means the company is fraud/fake but now it’s actually the opposite. Having a market cap of over $1B means it’s a red flag. So going by this logic almost all the large/mid caps have red flags just because their market caps are over $1B. Wow-oh-wow!!!!!
Point 2 – It’s actually a crime to make money outside of India and to appoint local auditors who know and understand that country’s tax rules, regulations etc. Many subs of BCG are incorporated outside India and that’s actually a crime. There’s no rule to make money here. The parent company was like an holding company all these years but now it is looking at growth. Everything depends on opportunities and is it wise to just invest money and make losses just because you are not doing that much money here? If the company does that also people will criticize the company and they’ll say company is burning cash here instead of putting it in a market where it can make profits.
Compared to the past, now there are more opportunities here. The situation was different few years back and the industry was dominated by big guys (it still is). Now since almost all the issues of BCG are sorted out, the company is planning to grow it’s business here. Like I said, everything depends on opportunities and your situation. Everything takes time.
(Talking about one important situation – Now people are spending more time online but the situation was different pre-JIO. I think everyone knows how much data costs were just 5 years back. Forget GBs, just to get few MBs of data we’d have to spend hundreds of rupees and the internet speed was not as good as it is now. How much things have changed after JIO came.)
Point 3 – When you have great growth opportunities will you pay more dividends or use all the cash for growth? All the ad-tech companies don’t pay any dividend at all so does that make them a bad investment? Will you look at future or just care about 1-2 rupees dividend? If the company can use cash for growth it can grow it’s business 20-30%. These old mentality people (not talking about age) don’t understand the importance of product development (investing in technology etc). When the world is changing so much and when almost all the companies are investing heavily in improving technology, some genius people see it as a crime.October 24, 2021 at 5:31 pm #12800
Point 4 – Yes, there were 2 legal issues and yes it brought bad press but what is more important is looking at the severity of those cases. Daum took BCG to courts because they wanted more than what they agreed for. Axis case was similar but it was the company’s fault in delaying the payment. There’s no defending them in Axis case but the thing is it was not that important and was never that serious.
In the former case, I support the company and I think the management took the right decision. Now BCG may pay $7M to DAUM for settlement (according to one document) so that makes Lycos’ value $27M. BCG was supposed to pay $36M totally and they paid $20M first and rest $16M was supposed to be paid later. DAUM demanded $34M more taking the total to $54M. Is it good to pay double for an asset that’s not worth that much? Let’s say iPhone 4’s value is Rs.5000. Will anyone pay Rs.10,000 to get it? Rs.5k is itself overpriced but imagine paying double of that.
In their daily lives people won’t pay double to get something but they want BCG to pay double for something that’s not worth half of it’s value.
Talking about legal cases of other companies, almost all the countries are suing Google, Facebook etc but still these companies are the most valued companies in the world. Just few days back Russia sued Google and asked it to pay 5-20% of it’s revenue made in Russia. That’s $240 Million.
People talk about quality and they say blue chips don’t have red flags but some of the bluest of the blue chips also have legal issues. Like I said, all that matters is the severity of the legal issue, not just the issue.
(I’m not saying BCG is better than blue chips or something like that. My point is every company will have legal issues and people can’t say it as red flag only because the company is small)
Point 5 – I have talked about this many times and I think all the genuine investors understand about this very well.
Point 6 – is already covered.
It’s obvious that if the company’s stock price rises and if it gets more popular then there’ll be more jealousy and criticisms too. Some criticisms will be valid but rest all are BS. Some are so childish that you have to feel pity for those who point them out.
First they said since the price is low, the company must be a fraud/fake company then they used name changes to create unwanted negativity. When the stock price rose and when no one gave a damn about name changes, people have started saying BCG’s subs aren’t audited at all. They talk about CA/CFA/MBA etc etc but they don’t even understand how auditing works and the auditor’s comments.
All the subs of BCG are audited by their local auditors and the report will be submitted to the parent company’s auditor by the management. This is common in every company that has more foreign subsidiaries. The parent company’s auditor has not gone and audited the subs separately as those subs will be audited by local auditors. They’ll receive the audited reports and that’s the comment they make in all their reports.
Some people are trying to bring an image saying subs aren’t audited at all. It’s just their lack of understanding and also their cheap mentality to bring unwanted negativity. Gullible investors get scared if someone talks about numbers and that’s the strategy naysayers are using these days. Apparently it’s a crime to get your subsidiary audited by EY. 40% of the business is audited by EY and the rest are done by other auditors.
It’s easy being armchair experts but very tough to do all the research and analysis required. If anyone takes investment advice from these armchair experts then I don’t know what to say. I’ll never consider them as investors.November 2, 2021 at 5:21 pm #12812
14th November is a Sunday3+November 2, 2021 at 5:26 pm #12813November 2, 2021 at 6:59 pm #12814
Facebook recently became a fake company. It changed its name to “Meta” to trap investors.
This is the reddest of red flags you can get.
But here comes the confusion – Facebook, sorry Meta is a blue chip stock so by default you shouldn’t find any red flag and you can buy it at any price. There are no risks for blue chip stocks, even countries taking legal actions doesn’t matter because it’s a blue chip stock.
On a serious note,
Every company has risks, just because some company is blue chip doesn’t make it risk free. GM, Ford, Chrysler, GE and many other companies were once bluest of blue chips but if investors bought them just because they are blue chips and if they ignored risks then they’d have lost so much money (or barely made any money).November 2, 2021 at 7:27 pm #12815jackyRegistered BoarderNovember 2, 2021 at 8:56 pm #12817nitin_asceRegistered Boarder
Yes true. Will BCG meet the guidance or will beat the earlier provided guidance.
My thinking is if management wants share price to move up they will try to beat the earlier provided guidance. Rest it all depends on business conditions and external factors.
Keeping finger crossed.November 3, 2021 at 11:25 am #12818vgsatworkRegistered Boarder
This is watershed moment for BCG wherein the company is expected to show industry leading growth numbers (based on what they had given as projection in Aug 2021). Given that BCG has given revenue projections for the first time and hence giving them an allowance for unforeseen developments, if they manage to meet 75-80% of projected Q2 revenue, EBITDA & PAT numbers, it would be great.
Looking at the AGM timelines, update on Acquisition is due by end of this month and exchange approval for preferential allotment (again by end of this month), that would give the company one more window before the AGM voting to go in for QIB for 1500 crore as indicated earlier. So, expecting Mid November to end of December with lot of actions around this..November 3, 2021 at 5:36 pm #12819November 4, 2021 at 10:01 pm #12820
The important thing that I’ve noticed all these years is that except some long term investors, others are not interested in BCG’s results. I’ve talked about this many times in the past also, BCG is an event driven stock more than a financial/business performance stock. People were/are more interested in events like Axis case closure, PW approval, Daum, bonus, etc. The trigger for the recent rally was not the business but things like bonus and acquisition news.
The first rally was because of bonus, FPIs investing and acquisition news and for the second rally it was the news that Mr.Shankar Sharma investing in BCG. The company had already provided guidance for the quarter, and the whole year but still that couldn’t support the price but it was the news of Mr.Sharma subscribing to the warrants.
It’s better compared to the past but still BCG should get out of this situation. The stock should follow the fundamentals more than the events. When the stock price was in single digits, no one talked about the business but after it went up, people started writing great things about the business and the ad-tech industry. Even now they are just comparing few ratios with it’s “real” peers but they’re not actually giving importance to things like working capital needs, cash flow issues, requirement to invest heavily in technology etc.
Because most people are not well informed some people are desperately trying to create unwanted negativity. It worked during Daum case days and it worked during Axis case days. Both were not important at all but still people gave too much importance. Had they understood the situation properly, BCG never would’ve traded at such levels in the past.
My guess is people will start giving more importance to BCG’s business once the Indian company acquisition is complete.
In Tanla, more than anything, people are giving importance to it’s business and that’s why it’s properly valued. For Tanla the triggers were buyback of shares and the growth in business.November 4, 2021 at 10:33 pm #12821
Good positive points made by @vgsatwork in #12818.
I would submit though, that it’s not good enough to meet 75 to 80% of the guidance given, considering it was given well into the 2nd quarter.
They would have to meet it or beat it. Cannot afford to disappoint the market on that front.
As far as the approval from the exchanges for the Preferential allotment is concerned, the timing thereof is not in the management’s hands. The shareholders’ approval was only at the end of the 3rd week of October.
The exchanges may well take their own sweet time if some clarifications are sought and disposed of at a pace not to our liking.
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