General Discussion

Viewing 19 posts - 4,461 through 4,479 (of 4,479 total)
  • Author
    Posts
  • #13031
    Abhishek
    Registered Boarder

    @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?

    #13032
    Abhishek
    Registered Boarder

    @ Logan .. excellent articulation with great example of soccer n IPL cricket. Thank you for keep educating us.

    #13033
    Logan
    Registered Boarder

    Thanks @Abhishek. I think BCG is the most misunderstood stock in our markets and one of the main reasons is because people don’t understand the business properly. Forget SSP, DSP, DMP, Supply Side, Demand side, programmatic, receivables etc many don’t even understand the importance of investing in technology, updating existing products, tools etc. For them TTD is a pure tech company but BCG is not. It’s so damn irritating to see those loose comments. It’s okay if TTD doesn’t pay dividend but BCG should pay 40% of the profits as dividends to prove the numbers are genuine. If an ad-tech company does that then who will provide the capital to invest in technology?

    Things change so fast in the industry and you have to be ready for everything. Now “Metaverse” is gaining a lot of popularity and everyone is investing in that. Facebook even changed it’s name to META. I don’t know how it plays out in the long run but almost everyone says that it has huge potential. BCG has to be ready for that and how will it be ready if it doesn’t invest heavily in technology? Developing important products is not so easy and requires money and skills. If they don’t do that and instead pay dividend then BCG will end up losing it’s business. One of the main reasons they issue more shares for acquisitions and don’t take on debt is because the cash flow is tight and majority (99%) of the cash should be dedicated for technology (product development etc). You have to look at other areas before everyone starts investing there. BCG was one of few companies to start programmatic advertising in video at an earlier stage and that’s why it is still in business and if the management had waited till DAUM case got settled then we wouldn’t have seen growth in the business now. Getting back Lycos may have lifted the stock but it never would’ve sustained if BCG had not invested in the right technology.

    For me MediaMint is hundred times better than getting back Lycos. Investing in audio ad tech is more important than Lycos. Next generation “Metaverse” is more important than 20th century Lycos. I have massive respect for Lycos and BCG is what it is today because of Lycos but the company has to move on from that. We had great players like Sachin, Dravid, Ganguly, Kumble then later Sehwag, Yuvraj Singh, Dhoni etc but team India moved on from them. Next Virat Kohli will go and then other current players will also go but what is more important is having a strong team that can compete and adapt to the changes. Lycos case is similar. In Football, Messi and Ronaldo will go and new players will come (like Haaland and MBappe). In cricket you can somehow manage with more old players but football is not like that. If a club invests more in old players instead of investing in young players then it can’t compete properly and later will become a loser club (like how Barcelona is now). Ad-tech industry is like football. IT industry is like Cricket.

    It took years to pay off India debt because the cash flows were tight. Not just investing in technology but the management also has to worry about the receivable issues. Genius people on MMB highlight about BCG’s receivables all the time but why do they fail to see TTD having receivables that are more than double of it’s revenues? TTD has payables more than it’s revenues which is not a very positive thing if we compare with “IT” companies.

    Another great argument is that – Since BCG is an Andhra based company it’s a shell company it seems. So by that logic even Tanla is a shell company. Thousands of companies that operate there are all shell companies then. After Bangalore, Hyderabad is the next place for software and technology and companies from all over the world are investing heavily in Hyderabad. Giants like Microsoft, Amazon, Google, Uber etc have a big presence there but these genius people don’t see all that. And MediaMint management and founders are fools to sell their company to a shell company and their clients are fools to continue doing business with a shell company (after the acquisition). If the clients won’t be okay with that then the founders wouldn’t have sold their company. The core management is staying after the acquisition and why would they want to work in a shell company or be associated with one? Respected people like Mr.Acharya and Satish Cheeti are fools to join a shell company risking their reputation.

    Many things have happened in the past that brought negative sentiment and there’s no denying that but concentrating only on that and cleverly miss pointing out the good things looks stupid to a common man like me. In our market, for some people, common sense is a luxury actually. I get goosebumps when I read some comments about BCG. Company changed it’s name so it’s a fake company, people who talk facts are all paid agents and many other great comments from great researchers. One 20 something guy with many followers once mocked BCG for changing names. The CEO started the company when that guy needed someone to “change” his diapers. The CEO has seen and experienced everything (dot com bubble, the great recession, shifting of advertising to programmatic etc etc) but some loser guy who doesn’t know shit about the company and the industry mocks him for name change. Time to leave the planet meme comes to my mind. Copying Warren Buffett’s quotes and tweeting them all the time is easy but building a company from scratch and being one of the top players in the world is not so simple and requires great skills.

    It’s so boring for me also to repeat these things again and again but there’s no choice, if we (long term investors) don’t do that then there’ll be vultures waiting to prey on BCG. They don’t even bother to peddle fake information about the company. I don’t know how they get the heart to peddle fake information. Talking about negative things is always fine but talking stupid things just because they don’t understand things is so damn irritating. Unfortunately there’s no vaccine for stupidity.

    #13034
    Raja
    Registered Boarder

    Dear friends,
    Good news, our bcg is added to BSE S&P 500 effective 7th Jan,replacing Gateway distriparks.
    Good luck and best wishes

    #13038
    hw_tw
    Registered Boarder

    It’s a US based Audio adtech company … Sorry, I was totally wrong in my analysis at #13030

    Anyway, this seems to be a bigger than MediaMint atleast in terms of valuation … and may be a step closer to Nasdaq listing

    #13039
    Logan
    Registered Boarder

    I hope that BCG getting into audio ad space will be like how it started “Brightcom” platform (programmatic video advertising). Like I said in my previous post that BCG was one of the very few companies that started it an early stage which turned out to be a great thing for all the stakeholders. I don’t think the audio ad market is too big but at least the opportunities are big enough for BCG to get into and also being a big fish in a small pond will be far better than being a small fish in a big pond (or ocean). Getting into that space at an early stage will make sure that BCG can become a big fish (in the long run).

    Yesterday I also talked about how our beloved naysayers will cleverly leave out positive things and highlight only negative things. They tried many things but “serious” investors aren’t giving a damn about them and they are countering these naysayers with facts. One trader was always talking about Daum Daum Daum but since no one is caring about it anymore, he tried to talk about India debt and since that is also done and dusted, he can’t use that anymore so now he’s trying to bring the perception that standalone is more important than consolidated numbers.

    According to him, since more people are using internet, mobile, watching more video, listening to more audio, the company should improve its business here. Good suggestion and it should be treated as a suggestion or advice but our naysayer tries to project it as a negative thing and worse than that is he tries to manipulate others to think like him. Here is where he forgets that there are sane people like me who don’t easily get manipulated by his nonsense. Last time I gave a different analogy (or whatever the term used to describe that) but today I’ll give his beloved Vodafone Idea analogy.

    More people are using mobile, internet, broadband, watching more videos, listening to more audio but why is Vodafone Idea (Vi) losing its market share every month? Why are many companies in the telecom sector (not just telecom operators) struggling? Why did many companies close their business in India? Even giants like Tata gave up. BSNL which had a monopoly in rural areas is struggling now. Remember more people in both urban and rural areas are starting to use more smartphones, internet which should’ve attracted more companies and all the companies should’ve made more money but why the number of telecom companies is decreasing every year? Where are Docomo, Aircel, Rcom, Virgin, MTS, Telenor now?

    Again – Since more people are using more internet, mobile etc, these companies should’ve thrived right but why is the opposite happening? Why aren’t new companies starting in this sector that is growing everyday?

    If the management wants then BCG can start doing more business here and it can start scaling up it’s business from the very next second but the thing is ultimately it should bring more value to the stakeholders and not lose the value. What’s the point in doing something and not getting anything in return? (or worse losing more money). They can’t do something just for the sake of doing it. Whatever they do, it should make sense and benefit everyone. You should know when to hit a six and when to defend. You can’t expect to hit sixers for every ball. What if BCG invests hundreds of crores and ends up losing it all trying to grow it’s business here? That time will the naysayers come and absorb all the losses?

    If y’all have noticed, most of the times many naysayers target(ed) only me. They do that because I don’t let them getaway with their bullshit. I’ll always counter them with logical answers so at the end what they do is they know they can’t influence me so they start calling me paid agent and try to make me the enemy. They think that we don’t have any brains or free will or we can’t think independently.

    Some months back one guy suddenly came and started calling me paid agent. I was little sad at that time but now I can’t stop laughing about it. Let him give a complaint against me to any law agency and let them probe me. When they find that I’m not associated with the CEO, company, promoters, management etc, I’ll sue the shit out of him for falsely accusing me. He has called many other people as paid agents aswell and I’ll contact those people and make sure that they also sue the shit out of him. I’ll make sure that he respects everyone and start behaving well with everyone. There’s a limit to everything. Just because he doesn’t agree with someone doesn’t give him the right to falsely accuse them. I would’ve debated with him had he made his arguments with facts (or common sense). These people don’t even understand what a healthy debate is. Whoever disagrees with them is a paid agent. Even I can call him a paid agent and accuse him of weird things but I’m not gonna do that as I don’t want to get down to his level. Like I’ve said many times in the past, I respect everyone and I don’t want any enmity with anyone (especially during these covid times when everyone is struggling).

    #13040
    Abhishek
    Registered Boarder

    sometimes market sentiments are so strange, TTML financials are completely messed up from what we could find through available sources but look at the stock price movement. And BCG is a gem stock, I have not found a single stock other than BCG which has such an emerging business backed up with strong financials and continuous growth. Market will definitely take it to right valuation sooner or later.
    @Logan – we all love you and all senior members of this board for educating us with excellent details of BCG business, future prospect, how to evaluate and figure out intrinsic value of this stock. Who cares for Naysayers who talks without any knowledge base, at least we don’t.

    #13045
    Logan
    Registered Boarder

    Hi everyone please let me know whether to laugh at this or to feel pity for our “aggressive trader” who doesn’t know shit about fundamentals.

    “Its technology company naaaa???
    What will they do with 2000 crore of cash???”

    So, technology companies don’t need cash at all and they can grow cash on trees or they can create cash out of thin air with magic. There’s a limit to bullshit and this guy doesn’t know what the hell he’s talking about. His followers think he’s some kind of a genius.

    He’s trying to mock BCG when he himself looks like a joker with zero knowledge. Most of the times you need someone else to expose someone’s knowledge (or lack thereof) but our “aggressive trader” doesn’t need that as he’s stupid enough to do it himself. I love it and I love his logic.

    His followers are so lucky. They don’t have to subscribe to Netflix or other platforms, they can see his tweets and get all the comedy they want.

    Challenge him for a debate. 100% he’ll block you or if he does reply to you then he’ll say what they’ll do with all the profits they have, why can’t they use that profits to acquire companies. This “aggressive trader” is supposed to know everything (fundamentals) about every company.

    #13046
    hw_tw
    Registered Boarder

    Lot of negativity is being spread around the Preferential Issue

    Looks like we have forgotten the history … Note that the market cheered positively when issue was announced and all of us has voted in favour of the same

    Listing out some points which the investors liked at that point of time … request the new investors to please know the history and take your investment decisions

    – These funds will be used to acquire companies … lot of people were skeptical at that point of time that how will BCG get funds for acquisitions when it’s MCap was some 2000 odd crores or less and looking to raise 1500 Cr … remember BCG sales was not like this before and there was a challenge in free cash flows too

    – The price at which this was allocated … 37.7 rs which was higher than the pre-bonus figures of around 27 … this gave a lot of comfort for the investors that we were able to raise the same amount with less equity dilution and even the price was high

    – And the big surprise factor of Mr. Shankar Sharma’s subscription … the whole market cheered this event … this event has played a substantial role in the rally of BCG and further fuelled by other events like 100% increase in revenue, PAT, FCF generation, leadership hirings and news of acquisitions etc;

    Anyway, its one more step forward in acquisition of DM and Audio adtech companies … This funds will help BCG to move fast and close MediaMint acquisition and bring the new team on board … needless to talk about the topline and bottomline growth it is going to bring on table both as an individual entity and as a backend supporting entity for BCG’s sales team

    #13047
    Logan
    Registered Boarder

    I think timing of the approval also has played a part in creating unnecessary negative sentiment. Just when the news of Vodafone Idea and TTML agreeing to give away equity to the government was around, we got this approval news. New investors who don’t/didn’t know the history properly might have panicked and sold and looking at that, our beloved naysayers took advantage of that. They’re trying to bring the perception that the management is giving away equity at such low prices instead of giving at the current price so the stock will go to that price etc. They also don’t know the process properly and they don’t know when this plan was made and of course new investors also will not put the efforts to find that out.

    Gullible investors will believe the lies without trying to find out the reality and of course sell their shares which will have an impact on the stock price for few days/weeks until the next event happens. Some people will ask about this in the conference call and waste everyone’s time just like they asked about promoters selling their shares.

    Few months back when the stock retracted a bit, some genius people wrote that Mr.Shankar Sharma sold his shares and that’s why the stock is crashing. They accused him of doing pump and dump. The funny thing about that was, Mr.Sharma is not getting shares but he’s getting warrants and also more important than that was it wasn’t even approved back then. So our beloved naysayers imagined everything and they made up stories on that. I’ll call them delusional but people with herd mentality call them greats and follow their “advice” very seriously.

    People like our “aggressive trader” and traders on MMB will try to give lectures about fundamentals and also try to score few brownie points because they can easily fool some people.

    #13049
    JackSparrow13
    Registered Boarder

    Brightcom is now a trading stock between 150-200, around 25-35 PE, till Dec results. No need to take tension regarding 5% +ve / -ve movements, and conspiracy theories.
    Cheers.

    #13059
    Raja
    Registered Boarder

    Dear all,
    Company is considering bonus shares for share holders on 25th January, this is in addition to other agenda…results etc.,
    Best wishes

    8+
    #13060
    rishi
    Registered Boarder

    SE_announcement_16012022.pdf. Bonus issue

    2+
    #13061
    rishi
    Registered Boarder

    Bonus

    5+
    #13063
    ramganesh1982
    Registered Boarder

    Hi Logan ,

    Great to continue hearing from you on all the current happening and feels great to connect back after a while in this forum , however I see this another bonus share announcement little concerning . I am sure you will also be not appreciating the fact that this dilution is not coming to an end . When I look at it from one side this bonus share is a saviour from dumping of shares impacting the share price .. but if I look at it from market sentiments perspective then it’s a concern if the market sentiments go the other way . Please share your opinion on this allotment plan !!! Awaiting your response on this

    #13064
    nitin_asce
    Registered Boarder

    Nothing to be concerned about. This is just a way so that PW holders pay up in full and get their warrants converted to equity.

    BCG can utilize that money to pay for their acquisitions.

    #13065
    Raja
    Registered Boarder

    There are 4 major benefits,
    1. Improve liquidity for normal trading of shares without uc and lc
    2. Reward long term share holders
    3. Unlock value for future expansion & buyouts
    4. Avoid paying high dividend and use this reserve for future growth
    Anything more or less favorable informed members can enlighten

    4+
    #13066
    Logan
    Registered Boarder

    Thanks @ramganesh1982. In my opinion this is one of those cases where you can’t get a proper answer and you’ll have to wait till the event to happen to know the impact. People started many theories and explanations after this news was shared. As expected, some people are saying it as a very positive thing and likewise naysayers are saying it as a very negative thing.

    I’m in the “I DON’T KNOW” category.

    Last time people were very excited for the bonus and some bought only for the bonus thinking they’ll get it for free. We’ll have to wait and see whether they have the same excitement now.

    Also last bonus issue was very important and you could sense that it would have a very positive impact. The stock didn’t have life for years and the bonus issue gave a breath of fresh air to it but this time it’s different because the stock is performing very well.

    Some things are very hard to analyse whereas others are very easy. Last year when Axis case was closed but the PW issuance was not yet approved, I had written that the stock may not do well until the issuance was approved. Some people said that news of closure of Axis case was enough, technicals were also very good, chart is in this shape, graph is in that shape etc and they said that whatever I wrote was very wrong and tried to mock me but at the end whatever I wrote did matter as my guesses were right. Though the closure of Axis case was very good, people that matter the most for stock price movements i.e. traders and momentum investors, wouldn’t have bought the stock and held for long because they’ll have a target in mind which was the PW issuance price.

    {Without that psychological barrier (7.7), Axis closure would’ve been enough to lift the price}

    Then after the bonus news and acquisition news rally, the stock retracted a bit and maybe it would’ve stayed in the range of 25-40 (latest preferential issue range) if we didn’t get the news of Mr.Shankar Sharma subscribing to the warrants. I think him being associated with the company brought a different perception and made the company more famous. His name and fame gave that push that was required for the stock to come out of the “lazy zone” (which is a PE ratio closer or below 8-10 in Bull markets and 4-8 in normal and bear markets). Then the great business outlook and the name of the target company gave further momentum which took the stock to 200+.

    Sentiment wise many things have changed a lot and the perception is way better than what it used to be just 1 year back. People aren’t getting fooled like they used to. At least some section of the investor community is not letting the naysayers to manipulate because they are understanding the company and its business better. People are asking logical questions to naysayers. Great people like our “aggressive trader”, diaper kid (who mocked name changes), doctor uncle (who mocked when total shareholders reached 1 lakh) and many other armchair experts with thousands of followers tried very hard to bring negative sentiment but they are failing.

    I think we’ll see some volatility till the conference call. There’ll be panic buying and panic selling depending on the price movements. If the price movement is green I guess people will panic buy and if it’s red then they may panic sell.
    (just a guess)

    #13067
    Raja
    Registered Boarder

    Dear all,
    Company has given clarification

Viewing 19 posts - 4,461 through 4,479 (of 4,479 total)
  • You must be logged in to reply to this topic.