[odysee]

Could have, should have..in all likelihood. Wonder what the underlying reasons could be for this twist in the tail. Or tale.
In the meanwhile, a lot of us have no option but to switch focus to the superlative performance of the company in the last few quarters, and the expected solid fourth quarter results. The investor presentation documents submitted to the exchanges last week provided more than a hint of continuing good growth and performance with the projected free cash generated figures being retained.
MediaMint acquisition closure, Audio tech acquisition, FA report, projections for 22-23 etc etc shall be keenly awaited.
The continuing investment interest shown by Institutional investors, both domestic and foreign, shall also be followed with great interest in the coming quarters.
The long standing retail investors on this forum have shown a lot of patience and resilience over the last many years despite many challenges, and, at times, episodes and events causing despair. I trust we can keep the faith.

[Logan]

Since early 2020 there’s an improvement in the way the company communicates but there were also few issues in that period. Last year’s delay in paying dividend, this year it’s with the delay in crediting bonus shares and now the SHP confusion. For some events we can understand that things will not be in their control like the FA, Axis case etc but at least they should inform on things that they have control of like bonus, SHP confusion etc.

They paid more than 250crs to banks, grew the business, acquired a good company like MediaMint but corporate governance issues will overshadow these important things. FPIs, MediaMint people, Mr.Shankar Sharma all have shares now and at least they should guide the management properly on these things. No matter how much ever good suggestions we give, most of the companies will not take small retail investors like us seriously.

(Copy pasting the morning context article in my mobile phone is hard and tiresome and I’ll share the article whenever I get time to use my PC)

[kiran]

Hi,

You are referring toa article for some time. plz share it sothat community members can appeciate on time .You can share name of magazine and month of publications sothat we can seek from them.

[radhutheoptimist]

Lot of confusion over SHP, CS resignation, CFO retirement, forensic audit… I don’t care if this company is going to do good business in future or not. At present company management didn’t come out with proper response. They have conveniently forgotten the fact that we the small time retailers were the first one to believe in their success. We the small time retails were holding the fort during difficult days. Later only all those Sankar Sharmas, fpi, fii and LLP came to their rescue. But the management seems to have forgotten all that and trying to keep the retail out of their success. That’s when it loses the respect from the retail. I had to cut down my 50% holding…. Ofcourse made unimaginable profit with a bitter taste at the end as I was forced to do and I didn’t want to do. Trust matters a lot.

[odysee]

I don’t think any retail investor is ‘forced’ to either buy, hold or sell a stock.
Whilst one can understand to some extent the frustration and consternation felt by shareholders as a result of some disclosure or non-disclosure by the management, it doesn’t merit a rejection of the business of the company and its performance or its perceived robust future prospects.
We invest in a stock purely based on the business prospects of the company , and that is the hard, cold reality. Corporate governance or deficiency thereof, wouldn’t usually trump the stellar business performance of the company.
A different perspective can also be considered as regards the rewarding of the long standing faithful retail shareholder. Two bonus issues within a short span of time resulting in more than doubling of the original holding is a very decent reward.
And we trust the best is yet to come, as we await multiple announcements by the company, followed by the inevitable conference call, where we can ask for complete clarity on many stated issues that have generated some concern in the retail investor community.

[JackSparrow13]

Thank you odysee for encouraging us to focus on the business, during this period.

My personal thought is that management wants price to fall now, perhaps to buy from scared retailers. For past few months, management often gets super active, when price falls – uploading ppts, clarifications etc (Remember the big clarification after the interview with ET?). I am actually interested to see how management comes out victorious from a trouble of their making. Otherwise SKR is pure crazy to sell shares after acquiring Mediamint (and close to buying Audio Company) and core business doing good. It would also be childish to run away selling shares to public at high prices (distribution), where he can easily stay at his company, and earn salary for decades, and also transition his next generation.

There is a demerger story by Joel Greenblat, when management tries to perceive a demerged company as bad intentionally to scare away people. This might be a similar strategy. Atleast from SKR, who does backdoor acquisition of LLPs to boost promoter share, simple tactics to increase promoter share (like buying from market, when few biggies will push it to upper limit) should not be expected.

-Badly biased, Sorry.

[Logan]

Last time when they announced bonus they had the CS, Mr.Manohar, who’d have handled these things properly but this time there’s no one. Like others have guessed maybe the bonus was declared to make FPIs and other people to pay their money faster and having to deal with extra shares may have taken longer this time and that too without the CS.

They are not ready to invest money in areas that improve corporate governance and investor relations. No one replies to our mails and we’ll have to wait till the conference call to talk to the management. Now the CEO is signing all the documents which are supposed to be signed by the CS and he has to handle bonus shares also. It’s not like they don’t have money to invest in these areas but they are careless. Replying to investors’ mail and addressing their concerns should never be neglected. We have raised this issue in almost every conference call and I stopped doing that because I don’t want to look like an idiot repeating that again and again and not getting any proper answer.

MediaMint people have BCG’s shares now and after the next acquistion, Audio Ad company people will get shares of the company and it’ll be embarrassing for them if the company continues to make these kind of mistakes (or are this careless).

When things are going well these things may not look important but in tough times these are what makes the difference and makes you stand out and as a result the market gives you a premium valuation. Look at turnaround companies like Tanla and other smaller companies, not just business but they have improved a lot in corporate governance and investor relations too and it is helping them in tough times.

[odysee]

@Investor_2022, is this the same website that missed out on the crucial fact that BCG had given a detailed note to the shareholders through the Exchanges on ‘Impairment of Assets’ post the results of March 2020? Wonder if that was deliberate or just poor research.

[admin]

@Investor_2022 I have removed the contents of the article to avoid copyright infringement issues. Moreover the writer’s work is mostly one sided arguments. Let’s not welcome such deliberate attempts which could be a part of large-scale propaganda.

[Raja]

Dear admin,admire your maturity and logic.
1. Deliberate attempts are constantly being made to create an impression that this company is not very professional.
2. On the contrary FIIs and other funds are adding this share to their portfolio, almost every week…including me.
3. Promoters are following the guidelines set out and they are keeping the stake holders informed
4. Even today they have kept us informed on bonus shares issue …bse website
5. Many have lost hope due to various reasons…mainly mmb and other uninformed or paid articles
Best wishes to believers in this forum,who are already sitting with HUGE returns

[radhutheoptimist]

Why so much silence in this group? Isn’t it time to break your silence. I remember when BCG fell 10% sometimes in January all popular boarders of this forum came in one voice motivating everyone to hold their shares. Of course then big guys were selling. I don’t buy the argument like no one asked us to sell or buy and one should do their own research. It is a fact that people like me Come here to get an opinion as we don’t have much means and knowledge to understand what is going on. We all know MMB is a jungle and we are aware of tigers roaming around there. We can handle it. But tigers under the garb of cow’s skin…. hope I am wrong in my assumption. By the way I have started buying again in truck loads.

[Logan]

In January, February we had many topics to discuss like MediaMint acquisition, results, conference call, audio ad acquisition etc. In March we talked about FA and now there isn’t much to talk about as there are no fundamental developments. We’ll have to wait for the results and then the conference call.

MMB is completely different from a forum like ours. Whether there’s any fundamental development or not they’ll keep having discussions there.

[hw_tw]

It will be one week post Apr deadline given by the management for CFO appointment… Unlike bonus issuance, this action is totally in the hands of the company and not dependent on exchanges the general expectation is that company would stick to its timelines

It would be better if management issues an update soon with latest updates if any along with a new timeline

[Logan]

That is their problem, I don’t know whether it’s laziness or negligence or carelessness but this has to stop. As everyone points out every time, this is not a smallcap anymore and they have to take things seriously.

FPIs should appoint someone to the board and they should make the company take market related things seriously. Maybe all retail investors should write to them (FPIs) and request them to nominate someone to the board. Like me, I’m sure all the investors are tired and frustrated of calling the company or mailing them and not getting a reply.

Management people are like Kumbakarna, 6 months they’ll be very active and do things very quickly without any delay but the other 6 months they’ll be too lazy. On corporate governance related things there should a Lakshman Rekha, they should be very strict with it.

Last bonus issuance went smoothly and no one had any problem but this time it’s going horribly. Last year dividend payment didn’t go well but this year there was no problem.

[JackSparrow13]

To be honest, I am getting more positive every day, as share price falling. After so much fall, share is still quoting about 15PE (16.8 as per Screener.in now), which for me is very high given the standard of management communications. I also note the high volumes everyday. Also, like the incessant noise on Twitter and Moneycontrol. The management is lethargic, but is being painted like criminals with hitjob articles, resulting in lots of panic. I also think, many people bought only for sake of bonus, and are now realising the dangers of such an special situation investing strategy.

I am disappointed about shareholding fiasco, but I expect similar games to continue, till management gets a respectable share. All i wonder is, since they have bought Mediamint, can they use its cash generated to increase promoter holding in a clean manner? Crossholding is legal right ?

[odysee]

Time and again, action or the lack there, by the management, results in avoidable anxiety at the investor level.
And it’s not that it would go unnoticed by Mr Reddy.
There have been a number of occasions in recent months when investor concern was addressed through release of some information or update to the shareholders via the Exchanges.
For some particular reason or reasons, that is not being done in the current turbulent times; and the compelling need of the hour is to do so.
When the markets are in such a funk, as in current times, the communication from management may not necessarily result in a reversal of the visible negative sentiment, but it would certainly ease the minds of the (thus far) faithful retail investor community.
Mr Reddy, kindly oblige your faithful flock.
I have a theory which I could share with fellow members, but discretion may truly be the better part of valour, at this juncture.
In the meanwhile, we shall resort to other means to lift our somewhat sagging spirits-mechanical winches included.

[chris]

Yes it’s been a tough five-six weeks post the SHP and yes trying to resort to other means to prop up the “sagging spirits”.

The anxiety was definitely avoidable, but looking forward towards next week starting with crediting of bonus shares, brightcom results (45 days post closure of last quarter, unless Mr.reddy has a surprise for us there as well !!!) and conference call (probably the most awaited event, to bring in some sort of sanity and to clear up all the speculations as to what happened to the promoter shares).
So two questions I needed clarity on :
1) Is there any loop hole or provision where the company can avoid declaring results and concall citing ongoing financial audit
2) The large deals and volume traded happening all through last month and this month as well we’re pretty decent at an average of 25 lakhs, “volume never lies” can we assume that there might be some wild cards that we as retailers are not aware of? Or is it just me and my biased invested opinion.

Thank you in advance

[odysee]

Chris, on your second question, without a doubt, you and I and scores of others on this forum with their “biased invested opinion “, with fingers crossed and hope beating (albeit faintly)in the respective chests.
As to your first question, the company could get 60 days since the audited annual results have to be declared too.
But having said that, the joker in the pack is the FA result which is due, but that pertains to a previous year and is essentially a balance sheet item.
As to the SHP, the genie in the bottle has shown no signs of emerging thus far, and as you have rightly observed, we need to wait for the conference call or some other communication from the company addressing that curve ball thrown at us.

[JackSparrow13]

Never waste a bull market. Even if brightcom goes back to depths from which it arose, it wont change the fact that mediamint’s past promoter was alloted share at rs.120 per share. Great move looking at current prices.

[hw_tw]

Guidance numbers for this year is also pending since long… Not sure if the delay is for CFO appointment or something else

Request management to please share it soon on a comparable basis without MediaMint

[Author]

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