[VALUEBUYER001]

Bcg Brightcom group share is now included in A Group shares. Great transformation and Information

[Manish]

It’s not the results it’s the jugglery happening around BCG.

What all it has gone thru requires deep analytics n dissection of data.

Why it’s happening will be revealed only at the end phase when everyone realises n are out of that spherical world.

Things matter most when it’s undercarpet when it’s above the legitimacy n it’s value gets eroded sooner than expected

How is this stock suddenly out of the blue is A group

How many other stocks are actually on this roadmap

Why so sudden

Nothing actually has changed over last 6 months except the negativity in social media for all the wrong reasons

What is happening n who is gaming it n why….

Any answers or am I playing just a mind game on my own….

https://t.me/+u48J23Di7Fg3NDE1

[Manish]

Yes true FA issue is in the price done n dusted …. Only Naysayers will catch every opportunity n pull it up to throw out weaker hands n play the stock..

These days jobbers n punters are playing too much on social media than on market …. Playing to the pain point n dumping shorting n buying the stock to their needs.

It is prudent to ignore them n look forward to more important issues.

Main issues in the past was debt that is clean clear n transparent.

Company is earning FCF

Company is paying dividends

Company is paying bonus

Business is increasing by all means n is good…

Nothing else matters in the long term for price to move up steadily n strongly ….

Just hold on…. N ignore all the Noise

https://t.me/+u48J23Di7Fg3NDE1

[Abhishek]

@Manish, you rightly pointed out on continuous improvement in business growth, also that we as investors should ignore social media noise by Naysayers.
We all investors mostly discuss on financials and business in this forum, and do not want to talk much on stock price because we strongly believe, it has to reach to true valuation and be aligned with business growth and financials sooner or later for sure.

[Manish]

Every quantity offered is getting absorbed

What looks good and even more challenging is management perspective n comments n results from hereon….

Every quarter from here on will be the Stepping Stone in the making which the management needs to visualise n act accordingly….

Now as we see the stock inching higher on higher after making lower to lower only thing that will hold on to this momentum is investors n traders confidence in short n long term

To build up this confidence n a much needed higher up RESULTS will play a pivotal role….

Let us assume it would be more exciting n great as we move ahead in crucial quarters of business cycle

👍👍🙏🙏

https://t.me/+u48J23Di7Fg3NDE1

[Sumeshnair2005]

Moneycontrol is very strange forum when a stock is having huge volumes crs and still closing in circuit since many days the experts there say beware its distribution going on .. I wonder thn whts accumulation?. ok let’s think these so called experts are correct thn if we see shp the number of share holders holding less than 1 lakh shares( retailers) hv gone down by 1.5% and those holding more than 1 lakh shares and fii holding gone up significantly.. so if these experts are correct then BCG is the only stock where retailers have distributed to big sharks and fii .. three cheers for experts of moneycontrol:)

[Logan]

@Sumeshnair2005, according to those experts, BCG is not a tech company like TTD, Magnite, Criteo or PubMatic but a backend company like MediaMint etc.

Websites like adauth, builtwith etc whose job is to give details about publishers and ad-tech companies that are using ads.txt don’t know anything like these experts do. These websites put all their efforts to know the above details but our experts base all their research on “guesses”. They’ll randomly talk rubbish and think they’re always right. I know there’ll be biases and hate and jealousy but my God I’ve never seen people so delusional. God bless them and their extraordinary minds.

If we go to builtwith, about Brightcom Direct sellers you find the following:

Brightcom Direct Customers
Get access to data on 113,993 websites that are Brightcom Direct Customers. We know of 69,865 live websites using Brightcom Direct and an additional 44,128 sites that used Brightcom Direct historically and 1,013 websites in India.

And you also find these companies as competitors and similar

Amazon Reseller
Tremor Video
Taboola
Vidazoo
Medianet
and many other reputed ad-tech companies.

You don’t see MediaMint or other backend services because they’re not pure ad-tech companies. Thousands of publishers use BCG’s ad-tech products and services. According to builtwith 52,099 publishers use BCG’s services in USA.

Brightcom is not the only platform/product that BCG has as it also has audienciad.

Everyone can download the list if they subscribe and pay these websites for information. Genuine websites like these say Google, Amazon, TTD, Magnite/Rubicon, Magnite etc as competitors but for great people BCG is comparable to backend companies like MediaMint.

There’s no denying that BCG has some issues, mainly about corporate governance and transparency so people have to be aware of both positives and negatives. Sometimes the above positives won’t matter if the corporate governance is bad. The sooner the management gives importance to that the better it’ll be for all the stakeholders. Also always we should do our own research to understand the company better instead of relying on self proclaimed experts on MMB, social media etc.

[kmr003]

BCG, should act faster on few pending issues / in progress

1 Update on media mint acquisition and number adding to standalone.
2. Daum, Forensic audit updates
3. Audio company acquisition
4. Pledge shares release.
5. Early release of quarterly results, Investor meet updates, and annual report, AGM.
6. Company website updates. and look n feel, ( i personally feel it is old design for M.cap of 10k )
7. Investor response team as promised by SKR.

[vstvm]

Dear All
Result date board meeting announcement notification has been updated in BSE for Q1 results.

[akkithegrt]

watch this you tube channel,the channel has done nice analysis on BCG.
DO CHECK OUT.

[Logan]

Some people think that the market has doubts about BCG numbers only when the stock falls but the same people don’t say the same when the stock price goes up. The thing is, in market there are all kinds of people, those who doubt the numbers, those who trust the numbers and those who are on the fence. When the stock falls the doubt on the numbers go up and vice-versa. So it’s really upto the CEO to change this fluctuation in sentiment. His or the company’s recent actions aren’t helping anyone.

It’s like a see-saw between believers and haters. When the stock price goes down, haters will enjoy and when the stock goes up believers will enjoy.

When the stock was in single digits more people had doubt but once the debt was paid off, the stock went up and when Mr. Sharma and FPIs invested, people were trusting the company more. Then later FA happened which brought a lot of negativity but during the peak FA negativity, Mr.Sharma again brought confidence to all by converting his warrants to shares and he said that he was aware of the impairment and he supported doing impairments to keep a healthy balance sheet. That time the stock almost doubled and people were not that sceptical about the numbers.

Later the confusion in SHP, delay in crediting bonus shares (which brought media attention) and delay in appointing CFO brought another round of negativity and after crediting bonus shares brought more supply too. Add to that the negative sentiment around tech stocks, inflation, recession fears and Ukraine war. Also the stocks that went up high last year just fell because they went up high last year.

Considering all these, it’s not only the doubt in numbers that’s making the stock volatile. At least from now on the CEO, management, promoters should take investor friendly decisions and they should be more transparent. Equally important is they should not get too lazy. We saw that with 2 things, one is when they credited bonus shares too late and the other was not appointing a CFO sooner.

Other important thing is Investors should value companies like how real experts like Ashwath Damodaran value and not like how self proclaimed experts who are present in social media do. He was spot on with his observation on Zomato but he himself said that he was wrong on Paytm. That’s shows maturity and humility. But our self proclaimed experts can never be wrong about anything and their analysis is always right even if companies don’t do well.

If companies (and stocks) do well it’s all because of them but if companies (and stocks) don’t do well then it’s the company’s fault and not the fault of our experts.

Ask them what’s wrong with BCG and they’ll say name change as the biggest reason. So for them it’s okay if you go against the law and still keep your old name which somebody else owns (I’m talking about Lycos). You should disobey the law and keep an asset just so you don’t lose the name. Then other reason they’ll give is receivables too high. Obviously receivables are high and that’s the nature of the industry and it doesn’t mean if receivables are high then the numbers are fake. I don’t know what they’ll say if they look at receivables of other ad-tech companies like TTD, Magnite, PubMatic etc which have receivables double their revenues.

Oh sorry, I’m a big fool, I’m comparing an adtech company with other adtech companies and not with random IT companies like the self proclaimed experts do (especially you should compare only with TCS). Only TCS and other big companies should do business and rest all should pack their bags and go home and they should not build any company. It’s a crime.

Companies which spend money to improve technology are all fake and their management idiots. They should just pay all the profits as dividends and if they don’t do that then it’s all fake.

Last week similar thing happened when Tanla stock fell and all the self proclaimed experts said it was a fake company. Nobody explained why that company was bad (or fake) and all they said was it was a fake company. If they really want to save investors then they should tell why a company is good or bad and they can’t say since the stock is falling it’s a bad company. What if the stock price goes up? Will it become a good company then? How many have checked Tanla books before saying it as fake?

I don’t know whether Tanla is a good company or a bad company or a fake company. I’ll not judge any company without proper research and I’ll not come to conclusion and accuse someone without having any proof. If I really have any complaints, I’ll just approach authorities and ask them what to do.

I just gave one example of Tanla but there are many other companies where people spread fake information just because they are jealous they didn’t participate in the rally.

This is the mindset of all the great self proclaimed experts –
XYZ company went up and I didn’t invest in it’s stock so it’s a fake company. I can never be wrong because I know everything about everything. Only companies that I look into are genuine and others are all fake. People who invest in those companies are all idiots and fools and I’m the only greatest investor there is. I’ll steal half quotes from Warren Buffett and other half from other investors and pretend it to be mine. I’ll repeat the same thing again and again hundreds of times because my only job is to influence others on social media.

Coming back to BCG, like I always say BCG has issues and investors should be aware of that. Last quarter there were more than 240 complaints and it’s a good thing actually because people are serious about it. These type of actions should make the management act more serious and should bring more transparency. They should bring more experts on board who can guide the company properly.

[Logan]

Some people have selection bias and they obsess over few things just to get over their jealously. They’ll call companies fake because they didn’t invest when the stock went up or because they sold too soon. Their only aim is to make other people sell their shares and later the company should suffer. They think if they don’t invest in a stock and it goes up then it’s fraud. All this because of their ego and the I’m never wrong mindset.

I’m all for investigative analysis where people will show hard facts why you should not invest in any particular stock or stocks. If someone shows proper analysis/proof that something is bad then I’ll change my views in a second but till now no one has shown anything substantial against BCG or other companies. All they said was/say is it’s a Hyderabad company so all Hyderabad companies are fraud, price is low so it’s a fake company, name changed few times so fake company, receivables very high so fake company, stock price fluctuations so fake company. No one has gone to the company and verified the books, talked to the management or clients of BCG and verified their accounts.

And in all this BCG’s management have not been transparent all the time. They haven’t properly clarified about SHP, they don’t communicate properly with shareholders and they get lazy/careless sometimes (crediting bonus shares and dividends). So investors have to be aware of everything. Talk to management and get clarity and if they don’t give proper response then approach authorities. But don’t get influenced by both positive and negative messages about the company. When there’s continuous LC people give targets of below 10 and when there’s continuous UC, people give targets of 100+ or 200+ or 500+. Investors should not get influenced by these and should always stick to fundamental analysis and talking to management or certified analysts. Just few days back when there were few continuous UCs some people gave targets of 400 but when there were LCs they are saying everything is fake and the company is fraud. So never get misguided by both positives and negatives.

Checking how other peers are doing also is very important especially in this tough environment. Perion Network did very well this quarter and both it’s revenues and profits went up but Criteo had a flat quarter. Snap had a bad quarter but Google had a good quarter and Facebook had the first revenue drop in it’s history.

It’s very hard to judge which company will do well and which won’t. If one company does well and other companies don’t do well, people will say the company that did well as fake/fraud. If Perion had traded in our market, some would’ve called it fake because Criteo didn’t do well. It depends on many factors, what kind of clients you have, what market you are operating in, and the size of your business. Perion is smaller compared to Criteo so it could be more nimble in a tough enviornment.

(Other ad-tech companies haven’t reported their results yet)

Check the stock prices of few ad-tech companies since 2020.

The Trade Desk
2020 low – $15
2021 high – $111
52 week low – $39(corrected more than 60%)
CMP – $52.7

Magnite Inc
2020 low – $4
2021 high – $61
52 week low – $7.06 (corrected more than 85%)
CMP – $8.83

PubMatic (IPO in Dec 2020)
2020 low – $23.5
2021 high – $69.9
52 week low – $14.73 (corrected more than 70%)
CMP – $17.43

Perion
2020 low – $3.67
2021 high – $33
52 week low – $16.4 (corrected more than 50%)
CMP – $20.66

Criteo
2020 low – $6.38
2021 high – $45
52 week low – $20.56 (corrected more than 50%)
CMP – $26.7

Viant (IPO in 2021)
2021 high – $68.3
52 week low – $4.59 (corrected more than 90%)
CMP – $5.37

These are independent ad-tech companies, others like Google, Facebook, Amazon etc are all giants. Facebook was trading above $380 in 2021 and now is trading at $167 (corrected more than 60%). Snap last year was trading above $80 and now the price is $10. Same with Roku which is a different kind of an ad-tech company. Last year price was above $460 and now the price is $82.

In all these, Microsoft is emerging as a big ad-tech player and gaining market share and recently signed a mega deal with Netflix to run ads on Netflix. It has so many properties with which it can flex it’s muscles and be a top player. Netflix situation shows that you can’t keep relying on subscribers for growth and you need ads.

Almost all the real peers of BCG (ad-tech companies) have corrected a lot but people (experts actually) only see big IT companies as peers and compare with them. Not just price but they compare the business, receivables, dividends and other things with IT giants.

(This post is not to make you buy or sell or hold BCG but just sharing what’s happening with in the industry, other ad-tech companies and their stocks)

[odysee]

Thank you @Logan for the very informative and instructive analysis of the ad-tech players.
Would you have the data on the current growth, profitability and earnings per share ( and PE ratio) also? Are they all free cash flow positive companies?
Really appreciate your insight and knowledge of this industry.

[Logan]

Thanks @odysee. I usually check published results by companies and then if I get time I’ll go through earnings transcripts. Big channels like CNBC, CNN etc may not cover all the adtech companies but some websites like Motley Fool, Seeking Alpha etc do and though they’ll be biased sometimes (because they’ll have shares in those companies) they still provide proper information and even discuss about the earnings calls which will be very useful. These days because of my health issues I’m not going through each and every transcript so I just check the results and check these websites for commentary.

For data you can check this very informative website called “macrotrends” which provides all the important information about all the US listed equities. They provide data about stock price history, each and every quarter, yearly, revenue, EBIDTA, net income and other important stuff. For bigger companies they provide data of 20-30+ years also. Only thing you’ve to be aware is the GAAP and non-GAAP earnings. Sometimes because of this the net income/PAT may go up or down drastically and people may assume wrongly so that time it’s better to check the published results.

Few years back I was very frustrated with BCG for not providing proper details and for not responding to my emails and calls and I’d have to wait till conference calls to get any information and sometimes I couldn’t attend the call and there was no updates also after the call but thankfully I started following other adtech companies and the whole industry and I understood things better. I got to know the challenges the industry was facing and most importantly I got to know how the real peers of BCG were doing. Because of the vast size of the industry we get required information and also because big players like google, Facebook, Amazon, Microsoft are involved there’ll be more coverage.

Regarding cash flows, most of them have good amount of cash and they are cash flow positive. One reason is their payable days are also more so they’ll have cash with them for more time. And for other things like salary some companies give stock options instead of paying in cash so in that case the earnings may get impacted but they’ll save cash. TTD, Magnite, PubMatic have very high payables which if our experts had seen would’ve called these companies fake.

Affle declared very good results and it’s good to know that not every company will suffer in this tough environment. Other important thing wrt adtech companies is that people have to check Y-o-Y instead of Q-o-Q. Q1 and Q3 will always be better than Q2 and Q4. You must’ve seen bad comments about this topic when BCG reported Q4 results and I guess that’s why the company shared that seasonality of the business presentation.

[odysee]

Thank you very much @Logan for your prompt, detailed and meaningful response. It does offer a lot of clarity on some matters that a casual investor would possibly not pay sufficient attention to when looking at the comparative business results of companies in this sector.
And I ( along with many on this forum) would certainly explore the sites suggested by you for further information and deeper understanding.
My grateful appreciation again for your immense contribution to this forum.

[rajeshmk]

In zeebusiness news channel yesterday they have selected Affle India as one of the 25 stocks to buy and hold in your portfolio for the next 25 yrs . Brightcom is in the same business as affle in fact bigger and better than affle. I’m sure that for the next 25 yrs brightcom will also be one of the stock to shine .

[Logan]

Thanks @odysee.

Not even a single self proclaimed expert on social media has explained why BCG is a bad company. Top 3 reasons they give is name changes, high receivables and low dividends but every serious investor knows about these and in fact if someone goes to some of these adtech and other tech companies and asks them to pay dividends, people will laugh at them. A typical “expert” on social media thinks that all tech companies are IT companies and they should pay most of the profits as dividend. They don’t understand the difference between product and services, seasonality/cyclical nature of the business and they can’t understand the challenges all the companies are facing in the industry. To know about all these, the best investors can do is to follow all the adtech companies regularly and read reports and commentaries by the management of those companies.

Yesterday PubMatic reported it’s earnings. It’s revenue grew 27% but the net profit decreased because of few things like stock compensation, loss in equity investments etc. There was a growth in CTV business. If PubMatic hadn’t invested in CTV business but paid dividends it would’ve suffered. Some people think investing in technology as a red flag. I don’t know what “tech” companies have to invest in other than in technology. What’s the point of being a tech company if you don’t invest in technology?

[Logan]

Does anyone have the recordings of the webinar of Mr.Shankar Sharma which was held on Sunday? People in mmb wrote that he talked about BCG and forensic audit.

If anyone has that please share it here so that it’ll benefit all the investors.

[odysee]

Logic, rationality and common sense are in serious short supply @Logan.
Unfortunately, the retail investor at large does tend to pay heed to these ‘analysts’ and ‘expert’ commentators, and help in creating such a negative perception on social media at least.
At one time, companies (or an industry body), that were conducting a business of manufacturing products that carried a negative public perception, would hire ‘Public Relations’ firms to assist in positively changing that negative perception. And a fair amount of success was achieved, both with the investing public as well as government bodies.
Wonder how we can tackle the current situation. Apart from the active involvement of the BCG management in improving corporate governance and positive communication.

[odysee]

Admin, would it possible to provide the Shankar Sharma Webinar recording here?
It is available on the Telegram group of Brightcom investors.
One observation in relation to that- the Anchor of that show, very deliberately, avoided any question or reference to BCG, despite a majority of participants requesting for the same as evident from the number of requests flashing across the screen for him to ask about that company. In fact, he was about to close the program and had already thanked Mr Sharma for his participation, when SS interjected and said to hang on a moment as he wished to respond to so many requests regarding BCG that he himself had observed flashing on the screen. Bully for him that he offered an objective view on the ad tech industry as well touching upon the FA issue being dealt with by BCG.

[Author]

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