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  • #12977
    vgsatwork
    Registered Boarder

    The warrants issued at 7.7 has 1 year lock in period and would start coming out of lock in period sometime in Aug 2022

    7+
    #12981
    NIRAJ1
    Registered Boarder

    NSEI:BCG Brightcom Group (NSE:BCG) Could Be Struggling To Allocate Capital BySimply Wall StPublishedDecember 16, 2021 If youre looking for a multi-bagger, theres a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that its a business that is reinvesting profits at increasing rates of return. So when we looked at Brightcom Group (NSE:BCG), they do have a high ROCE, but we werent exactly elated from how returns are trending. Return On Capital Employed (ROCE): What is it? For those that arent sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Brightcom Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities) 0.20 = ₹7.9b ÷ (₹42b – ₹3.7b) (Based on the trailing twelve months to September 2021). Thus, Brightcom Group has an ROCE of 20%. Thats a fantastic return and not only that, it outpaces the average of 12% earned by companies in a similar industry. See our latest analysis for Brightcom Group NSEI:BCG Return on Capital Employed December 16th 2021 While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If youre interested in investigating Brightcom Groups past further, check out this free graph of past earnings, revenue and cash flow. So How Is Brightcom Groups ROCE Trending? We werent thrilled with the trend because Brightcom Groups ROCE has reduced by 27% over the last five years, while the business employed 73% more capital. That being said, Brightcom Group raised some capital prior to their latest results being released, so that could partly explain the increase in capital employed. The funds raised likely havent been put to work yet so its worth watching what happens in the future with Brightcom Groups earnings and if they change as a result from the capital raise. The Bottom Line In summary, despite lower returns in the short term, were encouraged to see that Brightcom Group is reinvesting for growth and has higher sales as a result. And long term investors must be optimistic going forward because the stock has returned a huge 2,712% to shareholders in the last five years. So while investors seem to be recognizing these promising trends, we would look further into this stock to make sure the other metrics justify the positive view. If you want to know some of the risks facing Brightcom Group weve found 3 warning signs (2 are potentially serious!) that you should be aware of before investing here. Brightcom Group is not the only stock earning high returns. If youd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall Street Pty Ltd 17-21 Bellevue Street, Surry Hills, Sydney

    They have describe two
    RISK ANALYSIS
    1)High level of non-cash earnings

    2)Shareholders have been substantially diluted in the past year

    Answer is—- Company has long cycle of receivable which almost all companies of digitla advertising. avarage 90-120 days . they are par with industry.
    2nd
    Equity dilution for getting money for working capital and growth .
    BCG has demostrated growth and gave guidance to double the sale and profit which she is following it.

    so Every points are positve an risk has ben taekn care of.
    Happy investing….

    #12982
    Logan
    Registered Boarder

    (Replying to #12973)

    Thanks @PBB and sorry for the late reply. I don’t think I deserve that, I only wanted everyone to understand the reality. The main reason I mentioned that song was because it suits ours (shareholders) and the company’s situation/journey perfectly.

    “I’ve done my sentence but committed no crime” can be related to the stock price crash. Though no crime was committed but still the stock price crashed (mainly due to lack of understanding of the company’s situation). People took irrelevant things like DAUM and Axis case seriously and neglected the important things like product development, receivable issues etc. They just wanted the stock price to go up and didn’t bother about the problems the company faced.

    “And bad mistakes I’ve made a few” can be related to merging with LGS and later inheriting the debt which turned into NPAs. The company had to pay more than 300crs for one bad mistake.

    “You brought me fame and fortune and everything that goes with it” can be related to the popularity that BCG is getting now.

    “It’s been no bed of roses, no pleasure cruise” can be related to the past history where we all (CEO/management/shareholders) suffered. I still remember the tough days during Lycos-DAUM case. Even recently the Axis court case was similar.

    Mid and late 2010s period was very bad for ad-tech companies. Many growing ad-tech companies went out of business during that period. When I didn’t understand many things properly even I thought that the CEO was not taking things seriously but when I started doing more research and when I started following the ad-tech industry closely, I understood that the CEO was doing the right thing and that I was wrong to judge him harshly. Criteo which was once valued more than all the other ad-tech companies combined, slid more than 90%, Magnite Inc was trading at prices less than $1.5 just 2 years back. People never saw all these and they just complained 24/7 about the CEO which I didn’t like.

    People who were criticizing him just few weeks back have started praising him because the stock price went up. That looks very artificial to me. We support our favorite team whether they win or lose but some people will only support when the team wins. There’ll be rough patches where our team will lose more than winning but what is important is whether they are playing well and whether they have the commitment required. If they have that then it’s just a matter of time that they’ll start winning. Just few weeks back people were mocking me when I compared BCG with companies like TTD, Criteo, Magnite, PubMatic etc but now BCG is bigger than most of these companies (except TTD, Liveramp etc). In the past 1-2 weeks, BCG has beat Magnite, Criteo, PubMatic, Tremor International and now it is the largest public ad-tech company in India.

    Like I’ve said before, for BCG to be in this position, the CEO deserves all the credit. He took the right decisions at the right time and now because of that the company is doing very well. Doubling profits in a tough year is not easy.

    #12983
    odysee
    Registered 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.

    #12984
    odysee
    Registered 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.

    #13003
    Raja
    Registered Boarder
    #13016
    NIRAJ1
    Registered Boarder

    anybody rceives link for tomorow’s AGM?

    3+
    #13017
    PBB
    Registered 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.

    #13018
    Logan
    Registered Boarder

    Even I didn’t get any link/mail for the AGM and the only mail I got was for the e-voting. Since I was very busy all these days, I forgot to vote. Can someone please record the AGM and share it with us. It’ll be very helpful for those of us who can’t attend the AGM.

    #13019
    kiranj
    Registered Boarder

    You can still use the click here link in the bottom of the e voting events page to join AGM today

    2+
    #13020
    NIRAJ1
    Registered Boarder

    i could join late and skr said about utilisation of new acqusition. All team has new tool to get new business.

    3+
    #13021
    NIRAJ1
    Registered Boarder

    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 ) |

    #13022
    hw_tw
    Registered Boarder
    #13023
    hw_tw
    Registered Boarder

    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 lakhs

    Morningstar
    https://www.morningstar.in/stocks/0p0000b40o/bse-brightcom-group-ltd/overview.aspx

    MSN Money
    https://www.msn.com/en-au/money/stockdetails/bom-532368/fi-ahdf77

    #13024
    hw_tw
    Registered Boarder

    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 asap

    #13025
    Abhishek
    Registered Boarder

    many times market sentiments are shocking and so now, but an educated investors make use of this golden opportunity. I am adding in dips. Happy Investing!!

    #13027
    Logan
    Registered Boarder

    Man, I really can’t understand why real/serious investors take discussions on MMB seriously. 99% of the people who write there are traders and the others who call themselves long term investors are at best momentum investors and not long term investors who understand companies better. It was once full of good people who used to discuss important topics but now it’s a complete joke.

    One trader who doesn’t know basic stuff about the company (and who sold BCG at 9 pre-bonus) says that BCG is not a pure tech company but The Trade Desk is. I don’t know whether to laugh at this comment or laugh at his ignorance. The basis for all his so called “research” is that the standalone numbers (parent company) is too small. Only in our markets we see these genius comments. Many dudes don’t even understand the concept of a holding company.

    It’s not making money in India so everything is fishy. It can make money in the US but why can’t it do the same here? One common sense is that India market is not as big as the US market. And the developments happening here are still at an early stage compared to a mature market like the US. I can relate it to football. Football Clubs in Europe make more money than clubs here. Why is it like that? There also they play the same sport and here also it’s the same sport why such a gap? And every big investor wants to buy clubs in Europe (especially in England) but not many want to buy here, why?

    It’s all market boss. Our country is still developing in this sport and it’ll take years (maybe a decade or more) for us to reach the levels of European countries.

    More people are playing football here and why can’t India win or qualify for the world cups? And why can’t clubs make more money here? The population is more than 130crs so the market is big. The clubs are all lying. Such a big market but they are not making money here. Something is fishy.

    Even if you bring GOAT (greatest of all time) Messi here and play him in an Indian club against an European club you still can’t win against them. It’s not only about players but the system also. The defense should be very solid and the midfield should support the attack and the defense. The European clubs will make sure that the ball never reaches Messi and they’ll freeze him out. Bringing Messi to play here will be a huge mistake. First we should develop players here and improve them and that is what our country is doing. Compared to the past, football in our country is developing a lot and with time it can only get better.

    Look at the average salaries of players in EPL clubs. Average salary of the best team Manchester City is more than £9M (90 crs+). Even the average salary of smaller clubs like Brighton, Burnley etc is more than £2.5M (25crs). This is average salary and the overall salary of big clubs like Man City is £220M (more than 2200crs) and for smaller clubs it is at least £35-40M (350crs+).

    The total salary of an Indian Super League club you ask? It is just 16.5crs (which is less than £2M) and remember it is not the average salary but the total salary. So what it means is that one EPL player (on average) earns more money than the whole squad earns here.

    Many clubs in ISL are running at a loss even if the viewership has increased every year and more good players are playing here compared to the past.

    (No one can beat our country when it comes to cricket and IPL is the best example. Even in other countries they play these leagues but they’re not as big as it is here. Pharma, IT and other industries are like that here. US is very bad at cricket and it’ll take decades for them to reach India’s level)

    Why am I talking about all these and wasting everyone’s time? Because it’s all common sense. The company right away can’t start scaling up it’s business here and it can’t make more money here. Everything takes time. They will start doing it at the right time and acquiring MediaMint is the first step. First they’ll start with backend and slowly start scaling up the frontend. Slow and steady wins the race. Remember the hare and the tortoise story? What happens if you try to take decisions without patience?

    Also if the company tries scaling up here and if it incurs losses then the same genius people will start criticizing it. The management and the CEO know what they are doing and it’s best to leave these things to them. If you are not okay with it then please ask them instead of whining about it and trying to influence others with your genius.

    When it comes to standalone vs consolidated, even InMobi’s standalone and consolidated numbers are similar to BCG’s. And the company is planning to list in the US instead of listing it here. Why? When I said our market doesn’t understand ad-tech companies properly some people mocked me but still they haven’t answered questions like these.

    The other important thing is in the US you don’t report standalone and consolidated numbers separately. You just report consolidated numbers.

    Okay BCG is a very bad company because the standalone numbers are bad but what about companies that have listed through SPAC routes? There the holding company doesn’t even do any business and the numbers will be close to zero. Their only purpose is to hold the acquired companies. They won’t even have a proper office and employees.

    Some people won’t even know shit about shit but they’ll try to influence everyone. So investors should be aware of all these things before they get influenced by genius comments. Always do your own research and talk to the CEO, management and then decide whether to buy or sell. Most people on sites like MMB don’t know what the reality is.

    I’ll write more about these genius things in the future and expose their lack of knowledge. Since I’m very busy I’m not getting the time.

    #13028
    JackSparrow13
    Registered Boarder

    Hi,
    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.

    #13029
    hw_tw
    Registered Boarder

    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 logic

    #13030
    hw_tw
    Registered Boarder

    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 way

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