General Discussion

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  • #14432
    odysee
    Registered Boarder

    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.

    #14433
    Logan
    Registered Boarder

    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.

    #14434
    odysee
    Registered Boarder

    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.

    #14435
    rajeshmk
    Registered Boarder

    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 .

    #14436
    Logan
    Registered Boarder

    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?

    #14437
    Logan
    Registered Boarder

    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.

    #14438
    odysee
    Registered Boarder

    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.

    #14440
    odysee
    Registered Boarder

    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.

    #14441
    Logan
    Registered Boarder

    @odysee, most of the self proclaimed experts don’t have a clue about the adtech industry. Most of them are either jealous that they missed out on the rally or too rigid to accept that they can be wrong. Like I mentioned in one of my previous posts, for them if any stock goes up that they were negative on then that company is fake and everything is fraud.

    If I miss out on any stock that went up, I’ll blame myself for not studying it properly. I won’t go and say that company is fake/fraud etc just because I didn’t buy that stock. I’ll check where I was wrong and why I couldn’t grasp the things that others did.

    Mr.Sharma has studied the company, industry and that’s why he has invested his money. He knows well about the industry and he said he had also invested in TTD. A real analyst like him will check everything (industry, peers, past, future, challenges etc) before commenting but as mentioned above, our self proclaimed experts don’t have a clue about the industry but make the most noise.

    Self proclaimed experts get access to most of the content on the net because of ads and the adtech industry (technological innovation). Social media and browsing is free because of ads and the adtech industry. If ads were not there, people would have to pay for most of the stuff on the internet. The people who copy paste from many websites and write big threads pretending to be theirs get access to that content only because of ads. Netflix didn’t run ads for many years but now even they are changing their approach.

    So a real analyst will check all these and many other important things before coming to judgement. They’ll talk to the management, company’s clients, try to verify the books, accounts before influencing others and making loose comments.

    On the other end, the company should also become more transparent and should improve a lot in corporate governance. It’s not a small company anymore and scrutiny will be more as it grows both in business and Market cap.

    #14442
    odysee
    Registered Boarder

    At the cost of the possibility of my following comments being considered superfluous, I feel the need to elaborate on the crux of the Forensic Audit matter, which according to Mr Reddy ( conference call ) and Mr Sharma on Sunday (7th August 2022) dwells essentially around the matter of write down of certain assets by BCG in a previous financial year.
    As Mr Sharma explained, the writing down or writing off of assets in a company’s books is a pretty standard and prudent practice the world over. This is done to ensure that the assets are not carried in the books at a higher than fair value. This could arise for various reasons including products no longer being revenue generating or being less productive than in the initial years of development. If these are carried at cost without being written down, then it would not reflect a true and fair value of those assets in the books of the company.
    It is a fact that auditors generally are very mindful of ensuring that there is no overstatement of stock values or asset values in the books.
    This principle also applies to loans and advances for product development or assets in the books pursuant to an acquisition of another company, or any advances peculiar to the nature of business (the adtech industry).
    Prudence demands that these items are periodically reviewed and written down or written off as the case may be.
    This is considered to be a good accounting practice and Mr Sharma was in full support of this prudent and necessary exercise. I concur.
    It should also be clarified that there is no charge to the profit and loss account and the entry is a balance sheet adjustment.
    In a nutshell, that is what was explained by Mr Shankar Sharma in the closing minutes of the Webinar, along with an expectation of a fair and balanced conclusion by SEBI.

    #14443
    odysee
    Registered Boarder

    Apologies. Missed adding the punch line-
    BCG is essentially a tech company, and it requires constant upgradation and development of the products it provides for servicing its very demanding clients in a very competitive environment.
    Technology does necessarily become obsolete in this digital world and hence what is no longer productive has necessarily to be written off.

    #14445
    radhutheoptimist
    Registered Boarder

    We have heard so much about the strength of BCG and adtech companies. I don’t think there is anything to analyse any further in that regard. Can someone throw some light on how these operators function… If at all it is circular trading what could be the idea of so much volume on daily basis? Ofcourse I see some fii accumulating… But it is not proportional to the volume. In the last three months I assume closer to 40 crore shares were sold and taken on delivery. Basically I am wondering how these operators work and make money…

    I thought yesterday volume was huge and today’s seems to be exceptional.

    #14446
    Logan
    Registered Boarder

    I think it’s after the second bonus issuance that we are seeing more volume everyday. It has become easy for operators to manipulate prices. Management people have to look into it. The second bonus was unnecessary and the supply it created has been so huge.

    Adtech industry is very unpredictable, and the Adtech companies stocks more so. Today TTD is up more than 34% just because it did better than expected. PubMatic went up more than 25% after it’s results. Roku, snap crashed 30-40% after their results were published.

    #14449
    kmr003
    Registered Boarder

    I think this conference call investors should ask tough questions to mgmt. about issues and transparency, even small unresolved issues turning it into big. (example bonus credit)

    I’m confident on growth of BCG business .

    > Market values higher PE not only to business, values more to transparent, reliable easy to access mgmt. BCG should realize this and change.
    Onboard few trusted market veterans to board / mgmt. (like Mr.Peshwa Acharya)
    > Higher priority should be given to BCG reputation by resolving pending issues, and transparency
    > dedicated team for investors relations, they keep on promising same from many calls, Even now emails, calls unanswered.

    #14450
    odysee
    Registered Boarder

    What a superb performance by BCG in the first quarter.
    The guidance for the year in all probability should be met if not exceeded.
    The relentless and unstinting hard work put in by Mr Suresh Reddy and his outstanding team of committed professionals deserve a standing ovation from all of us.
    Admin, Logan and the others who have unflinchingly stood by the company and kept their faith -take a bow.

    #14451
    Manish
    Registered Boarder

    Result is STUNNING N Truly Management has a vision n understanding n is in line to what they say…. CONGRATULATIONS to the Team n Management for putting up a spectacular show n raising levels in terms of performance making it difficult for all Naysayers from here on…

    Second n Third qrtr should really give that confidence to put the entire group on another level from hereon

    #14452
    Sumeshnair2005
    Registered Boarder

    Hi all congrats on bumper results . While we enjoy BCG results .. I request seniors to look into himalaya food I posted in hidden gems I think easily it can be 3 to 5 bagger by dec thanks

    #14453
    Manish
    Registered Boarder

    AFFLE INDIA

    Q1 : CONS. NET PROFIT UP 52 % AT 54.5 CR (YOY), DOWN 20 % (QOQ)

    REVENUE UP 128 % AT 347 CR (YOY), UP 10 % (QOQ)

    EBITDA UP 99 % AT 68.8 CR (YOY), UP 18 % (QOQ)

    MARGINS AT 19.7 % V 22.6 % (YOY), 18.5 %

    BRIGHTCOM GROUP:CONS NET PROFIT UP 159 % AT 272 CR (YOY), UP 22 % (QOQ)

    REVENUE UP 126 % AT 1480 CR (YOY) ,UP 19 % (QOQ)

    EBITDA UP 113 % AT 65.8 CR (YOY),UP 19 %(QOQ)

    MARGINS AT 30.75 % V 32.5 % (YOY), 30.9 % (QOQ)

    Hands down beaten ….

    Truly an AD TECH company

    Don’t miss the opportunity …. Hold on possibilities are just opening up Endless

    All Naysayers n Shorters will want their share back….

    😃😃😃😃

    #14454
    nitin_asce
    Registered Boarder

    Very good results as per management guidance.
    Looking back 3 years, there were multiple issues and most of them have been sorted. Only few are pending and we have to wait to see get them sorted.

    Few observations-
    1. Adding new ceo for indian operations. This might be starting point before mediamint acquisition is complete.
    2. Company adding new director in board of directors for financial control strengthening. From my standpoint very important step.
    3. Audio acquisition.

    The company sees huge revenue increases with free cash flow and it looks from action of company that transition to become large cap has started. There might be hits & misses in this journey but we have to face that. Next 2 years are very important in this journey.

    Management intent seems clear now and it is growth what they want. In the past ghee could not fully tell the truth because of compulsions and kept changing narrative but now it seems that there is no such requirement. Eagerly waiting for concall. Will expect some analyst in thus quarter concall.

    Very excited to see the results and hope BCG does much better than the estimates in next 3 quarter.

    #14455
    Logan
    Registered Boarder

    BCG is lying to everyone and we’re all being misguided by the management. BCG has debt of 867crs but they are saying they have zero debt.

    We’re all idiots to think that BCG doesn’t have debt, ask the self proclaimed expert/analyst that Morning Context consulted to know about how liability is debt only for BCG but for all the other companies it isn’t actually debt.

    All the accounting experts are all idiots because they don’t think liability as debt.

    The whole world knows that liability doesn’t mean debt but our expert just to show his hatred towards BCG and to bring negative sentiment is saying that liability is debt. God help his thousands of followers. I can’t understand how that genius got more than 3k followers.

    Even a non accounting guy like me knows the basic difference between liability and debt.

    All debts are liabilities but all liabilities aren’t debt. That’s the basic thing that you can expect someone to know but it’s an exception for genius people.

    People should let him know that he can’t fool everyone and there’s a thing called the internet and because of ads and adtech companies he can go check the difference between liability and debt for free. That way atleast he can stop lying to people and stop misguiding them and stop his shenanigans.

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