[Brightspot]

shankar sharma is live on CNBC at 2.30PM hope someone ask about brightcom and he talk something positive about it

[Logan]

Market sentiment is negative because of the lazy/careless attitude of the management. Delaying bonus shares, CFO, CS appointment is making the market to lose trust on the management and also there were negative articles about the company. This second bonus may have helped the company to get money from FPIs sooner but it’s impact has been worse. Normally people would’ve sold bonus shares but because of the overall negative sentiment (market and company specific) the selling pressure is more.

In these tough times when every stock is falling, the market expects companies to be more active in communication. Since the due diligence of the audio ad company is completed they should reveal the name of the target company. Some of the companies that fit the description provided by BCG are Audacy, Cumulus Streaming, Beasley Broadcast Group, TuneIn, iHeartRadio, Sirius XM, AccuRadio, Salem Media Group, MediaCo Holding etc. Few of these companies also hold radio assets so I just looked at these. If I have to check all the integrated digital platform companies then it’ll be a very long list.

They are using the services of no.1 M&A advisors (Houlihan Lokey) and for financial due diligence they used EY’s services so they are serious about it.

[Investor_2022]

Dear Logan, I guess they will disclose the name of Audio company in next month.

[Logan]

I also want to point out that BCG may buy only the audio assets of the target company and not the whole company. The overall revenue and/or the market cap of the target company will be more. Some of the companies mentioned in my previous post have revenues and market caps in excess of billion dollars. Also BCG may acquire assets of a company that is not mentioned in my previous post. It’s all guesses now and we’ll have to wait for the official communication from the company.

[odysee]

My comments-🤐
I could add to what @Logan has articulated but it would be pointless as Mr Reddy and the management appear to be working in a different zone to ours, and responding to shareholders’ valid concerns is not in their realm of immediate or quick redressal.
The art of savvy communication is not one that they wish to excel in. At least not at this point of time when it is most required.

[Brightspot]

I’m wondering if preferential shares allotted at 7.7 rs came out of lockin period, can anyone confirm?

[radhutheoptimist]

At least they can do simple things like announcing record date for dividend or buying shares for employee trust. Such actions may slow down the fall to some extent. Market may not be under his control. However proper communication to the retail is within his control. Looks like Skr is in bigger mess due to unannounced stock sale or media mint purchase. He does have a special talent to create a storm with spoon full of water. Right from Axis bank case, Daum issue, 5 paisa dividend payment delay, cs cfo appointment to latest bonus delay…. messed up simple things. Looks like till he acquire 50% these thorns won’t go away. Pity those retail guys who bought at 150+.

The only positive thing I see now is…. a futuristic debt free company is available at less than 7 PE. This itself is enough for me to hold and buy more.

[Brightspot]

In the month of August (lockin till august 30) we might see major sell off because those preferential shares (allotted to 54 non promoters) going to be out of lockin period ..so I believe this is the planned selloff now to avoid huge sellof in the august..there is no block deals today, so we might need to wait till 3-4 Lcs for reversal looking at the sell order..this is just my view

[kiran]

Hi,

If we accept that promotoer have sold their holdings in crores , this is not visible in deliverery percentage data from 25 Jan 2022 till 31 Mar 2022. attaching NSE delivery data . For BSE , i cant find traded data and delivery volume on BSE site. If can anyone volunteer for BSE , then is could give solid conclusion abour SHP ?

2. Have they transferred in some SPV or any gift or trust or off market deal or pledging to invoker ?

Attachments:

1. 01-01-2022-TO-31-03-2022BCGALLN.csv

[akkithegrt]

Guys we have to see the pattern of buying and selling.After going through ,we get to know hat FII’S are the buyer and retailers are sellers and traders are the one who are buying the remaining float and dumping at lower circuit to take the price down.Very soon reversal will be on cards.

Next things i respect all you senior boarders,but according to me SKR is closing step by step all points,whay aren’t mutual funds and FII’S ain’t buying,now see the major buyer are the institutions.

Next point if FA IS GOING ON AND FII’S are buying,this means FII’S OR MUTUAL FUND know the complete picture of BCG,be it FA or be it the financials.

Regarding SHP please don’t judge now,the picture will be clear very soon.

Guys before blaming understand one thing,SKR has bought almost 100 plUs institutions,and after that also are we saying that ,because CS and CFO aren’t hired,FA will have negative findings (as SKR is delaying things),the answer according can be decoded by FII’S buying.

If 100 plus institution have bought that means they know that there is nothing in FA.

And for those who thing that FII’S ARE BUYING BECAUSE SKR is showing some cooked financials,are absolutely speaking rubbish.

Are 100 plus FII’S not doing their homework before buying,or hey buying just because SKR is saying to buy.Its upto us how to decode things.

My perspective is that SKR is moving in right direction by increasing FII’s stake and decreasing retailers stake.its ,Just that we have to give him time.

GUYS IT BECAUSE OF THIS ORUM I BOUGHT BCG THAT TOO IN HUGE QTY AND WILL NOT SELL ATLEAST TILL 2025

[Logan]

@akkithegrt, some of the FIIs that are investing are passive ones and they follow a particular index and if any stock/company is added to that index they’ll buy that stock and if it is removed from that index then they’ll stop investing. Passive funds don’t follow the fundamentals regularly like active funds do. Sometimes if a company’s business is not performing well then they’ll remove it from the index and sometimes if the stock doesn’t perform well also they’ll remove from the index. With BCG the good thing is the business is performing well but not the stock.

The reason the stock is not performing well is because of many reasons but the main reason is because of delay in crediting bonus shares. Even after FA crash when Mr.Shankar Sharma converted his warrants to shares (and also said there was nothing wrong in doing impairment), the stock went from 60 something to 100+ (which is 160+ pre bonus) and then later even when there was SHP confusion it didn’t crash immediately because the CEO increased his stake in the company but all the problems started when they delayed crediting bonus shares.

Had they credited within time then we wouldn’t have seen this much negativity and pressure. The reason they delayed bonus is because there was no CS who would’ve handled it better than how it was handled. Delaying by a week or two or max 30 days people wouldn’t have minded but they delayed it by more than 2 months. People thought that the management is not serious or trustworthy so the pressure is more.

I think business wise no shareholder has any concern but the concern has always been with the communication. We have to wait till conference call to get any clarity. Even in conference calls max 1k people will attend and it will not reach every investor. They should start looking at improving investor relations ASAP. It’s either the communication will be very good or it’ll be very bad. They’ll have to find a middle ground. We don’t want sprint race or other speed races and we’ll be okay with a marathon. We want stability in prices and the management should look at that.

[Brightspot]

Logon thank you very much for wonderful analysis in this forum, however today I realized that this share performance is in the hand of operator network, whenever they want they can bring this scrip to UC and LC visa-versa, we are in the mercy of Operators. Todays large deals will give you some insight how powerful they are.there is no of use of any analysis (good or Bad) you guys provide in this forum, even SKR wont need any help from retailers as he was able to hook big guys even though he praise retail investors in conference call . He is able collect the funds necessary for his acquisition..so basically he wont care for any of our emails or calls..FA is nothing.. suzlon FA is going on for more than year so its left to organization to provide the outcome of FA ..its not mandatory for any companies to provide outcome to public..I believe bull run will start shortly once the operators snatch maximum possible shares from retailers..i dont think those FIIs or Shankar sharma will exit in losses..This is my Last comment in this forum thank you very much Admin for opportunity to express myself..no doubt this share will surpass previous high but dont forget book profit in regular interval..good luck to all

[Logan]

I think we should request Mr.Sharma (and FPIs) to take an active role (become a board member or take up an unofficial advisory role is he’s too busy) and guide them to make changes in the company. The reason people are panicking is because they are tired of not getting proper answers to their queries on time.

Mr.Sharma has not bought shares from open market but was allotted warrants and converted them to shares which means he had many discussions with the management. He converted his warrants to shares when FA news was there so he knows about the company properly.

If someone like him (who understands what investors want) advises the company regularly then we can expect better communication from the company.

We’ll support the company on business matters but corporate governance this year so far has been horrible. It was better last year but not this year. It’s too bad that we have to wait till conference calls to get any response from the company. I’d have visited the company if I didn’t have health issues. My health problems started late last year but recently it has become worse.

I don’t know when they’ll start giving importance to corporate governance and investor relations but the sooner they do that the better it’ll be for everyone. And strategic decisions too they have to look at various things before recommending/implementing. The second bonus was unnecessary and created more free float.

[Sobha]

Earlier our Hyderabad friends visited SKR in his office. That was very helpful. Can our friends from Hyderabad do it again?

[Rathi_b]

Meeting with SKR has been scheduled for Saturday. Any questions that you people want ask, please post it here. We, along with all other issues will take it up with him at the meeting.

[Sobha]

The dividend policy says about a pay out of above 15% of FCF. In first quarter the expected FCF is Rs 250 cr as per given guidance. So Rs 40cr can be paid out as an interim dividend which is 20p per share. If that is declared with quarter results, it can be paid without AGM approval. That will enhance confidence. Please consider suggesting so…

[Yogi]

Hello Friend: How many people are scheduled/allowed to meet the management? Can any of us join the team? What is the time of the meet and Where to assemble before the meet? Please give complete details for the benefit of others.

Best Regards,

[Logan]

@Rathi_b, it’s great to see you writing in the forum after many months. Hope you and all the Hyderabad members are doing well. Thank you for taking the initiative to meet the management and informing us about the meet.

These are my queries to the management, please review them once.

1) Update on SHP, there’s a mismatch in the SHP data provided by the company in the MCA website and in the exchanges. In the January SHP shared by the company, the promoter holding is mentioned as having 23,32,84,604 (23.32 crore) shares but in March SHP, without adding the LLP shares, the promoters’ holding has reduced to 4,24,31,791 (4.24 crore) shares. What happened to the remaining 19,08,52,813 (19.08 crore) shares?

In the conference call the CEO mentioned that he had not sold a single share in the last 12 months but his holding (without adding the LLP shares) has come down from 9,41,05,816 (9.41 crore) shares to 1,03,81,635 (1.03 crore) shares. Was there any off market transaction?

Still no information about this has been shared with the investors. Because of non-disclosure will there be any action against the company? How will you (the CEO) address this issue to the shareholders if there’s any action by SEBI.

2) Why haven’t you appointed CFO and CS yet? You knew that Mr.YSR would retire in March and you should’ve appointed his replacement before the retirement for smooth transition.

3) Update on MediaMint acquisition. Why is there a delay and no update on this? Shares were allotted to MediaMint people few months back but still its taking time to close the deal. Is the deal still on or is it put on hold?

4) Update on forensic audit.

5) Can you share the audited reports of all the subsidiaries?

6) Regarding acquisition of Audio Ad company, what payment options are you considering? Can you reveal the name of the target company?

7) The news of forensic audit, reduction in promoters’ stake, delay in crediting bonus shares has brought a huge negative press about the company and also the company is losing credibility. How do you plan to change that?

8) What steps are you taking to arrest the fall of BCG’s shares? The stock has corrected more than 60% and your actions aren’t helping it either. If this volatility is there, then all the retail shareholders will get nervous. We know that you don’t have control over the stock prices but if the communication is better we will get some relief. We don’t get answers to our calls, mails and we don’t know how to reach you in case if we have any concern.

9) Can you appoint any of the Big 4 as the consolidating auditor?

10) Update on FCF.

11) Instead of paying dividend, can you use the same cash to buyback shares?

[nitin_asce]

@logan @rathi_b I once saw a nanocap company website and was impressed to see audited subsidiary reports on their website. I consider this as gold standard for a company.

If BCG can do it it will be awesome. No doubt initially there will be lot of queries but if bcg can appoint one person to respond to queries the issue will be put to bed.

[radhutheoptimist]

There was a resolution passed to buy shares for Employee trust for ESOP. Isn’t right time to purchase that?

[Author]

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