[Logan]

When I suggested that we should look at someone to represent retail investors, it was not to oust the CEO from his post but to have more voice and to make the company take investor friendly decisions. I think even Mr.Shankar Sharma will not agree to a move that will oust the CEO.

It’s true that the valuation of the company and the fall in stock price is because of his actions but we should not forget that the company’s business has grown to this level because of him. When other companies are struggling, BCG is doing very well. Only if the company does well there’ll be value else there’ll nothing.

The important point is that it’s easier to fix valuation related issues anytime, prices can go from high to low and low to high but it’s not easy to fix business related issues, especially in the ad-tech industry. Once your business falls to certain levels then it’s almost impossible to get back on track. Many companies have gone bust and even giants like Yahoo, AOL etc have struggled and sold to other companies. Few years back Google and Facebook were only the ones which very dominant but now even Microsoft and Amazon have become big. Even smaller names have fallen a lot, Magnite fell 90%, PubMatic 80%, Even TTD had fallen more than 60-70%.

The issues that BCG has (that are in management’s control) are fixable. Timing is the main factor. If they released the audited reports 3-6 months back then we wouldn’t have seen this much negativity. Had they issued bonus immediately, appointed CFO and CS at the right time and directly announced the JV instead of saying it was Acquisition at first then the situation would’ve been very different. It’s different when you need 100 runs in 60 balls, 60 runs in 30 balls and 30 runs in 6 balls or try attacking when you have 10 wickets remaining than 2-3 wickets remaining. The CEO doesn’t know when to play attacking and when to play defensive. He needs a good coach who can guide him. Sometimes it does look like he doesn’t care so that time the board member or the adviser too has to be strict.

Close DAUM issue, improve communication (corporate governance), don’t delay things like dividend, bonus, appointment of key people, give proper clarification on SHP, announce the JV plan as JV and not as acquisition. Tell us the truth – whether you will get the shares or not. If all these are done properly and in the future if mistakes aren’t repeated then the market will recognise the changes and give good valuation.

We should do as @ved suggested. First we should talk to him and make him understand our pain, concerns and frustrations and ask him directly whether he gives importance to all the above. If he doesn’t answer properly or if everyone feels that he’ll not improve then whoever wants to take necessary actions can take them.

In investing I’m more interested in the analysis part than being an activist. I studied the adtech industry for years and then only I started writing in the forum. I try to do the same for all my investments. Sometimes I study and then invest and other times I invest and then study. I can suggest steps but to execute that you need someone with good skills and management which I clearly lack. And I don’t think I can handle all that pressure and expectations with my current health and it’ll impact more negatively.

Let us request a conference call only for this i.e. let’s not discuss other topics and focus on sharing our pain and concerns.

[Nikhilraj]

Agreed . But our Hyderabad members have already met him many times and he always gives the promises that issues will be fixed soon . We have not seen any convincing steps til now to boost our confidence . So this time he should feel the heat of investor frustration , our movement to be bit more agressive .

[akkithegrt]

I agree with you, Logan.

But we do not understand what we are missing. We are missing the “golden days” of BCG when its financials are outperforming.

CEO’s immature act has killed the stock price. SHP/Bonus issue/late audited susbsidaries results. There is a big loss of trust, and when there is a big gap in trust, negativity is on the rise.

The problem is negativity on the rise when a company is outperforming.
If negativity is rising, the CEO should answer it with actions. It is his duty towards shareholders.
The CEO should answer the mismatch in SHP and other problems directly by showing us proofs, e.g., this is what has happened with pledged shares, and we are going to do this.
If he had been transparent, nobody would have questioned him.

What use is business growth when management is not ready to improve corporate governance?

We, the group of shareholders, should understand that unless and until BCG management improves, the share price will not rise. (A forensic audit may take time to come.)

So our role is to question the sleepy management about why they are not answering simple questions like,
SHP mismatch: management should answer it first. This has happened, and this will be our action.
Daum issue: every time there is a fake commitment, management should give direct answers.
Buyback–what is the issue? I don’t get it. If you are at or above Rs. 1500 crore, then buyback, as your company is highly undervalued.

This is a simple question, and if he cannot answer it, then what is the use of the company growing?

We should be aggressive now, and we need straightforward answers.
We should act now as equity is way too high and the operator will finish the game of BCG.
Act now, guys!

[akkithegrt]

If we together can act ,then only something will happen.

Or else we will write essays over here and nothing will happen.

Sorry to say that but this is the hard truth.

[Myshport]

The frustration level of all investors of Brightcom is palpable. The extremely low valuation of the stock price, with a PE of just 2.6 against the industry PE of 28.39 (as per Moneycontrol), and the current Marketcap of just 3552 Cr is the main reason for this frustration.

It is obvious that the stock is being manipulated by the operators but the reason for the same is not clear. Obviously, as investors, we expect the promoters to step in, in whichever way they can, to curb this price manipulations … unless the promoters themselves want it to continue. This, lack of corrective action by the promoters, is the main reason why a lot of people have started using abusive language against the management.

I am not clear as to what we, as the investors in the company, can do to prevail upon the management to take some positive actions, other than sending them emails etc.

Since the company is performing exceptionally well, with very sound fundamentals, and is quoting at such low valuations, I wonder why some Biggy (like Reliance/ Adani) have not planned to take over the company through an Open Offer.

[Rathi_b]

Hi all, we the Hyderabad group agree with the suggestions that we need to have a call with SKR before we take any other steps. Having said that we believe this time we can should have some more knowledgeable long-term investors In this call. But we cannot add a lot of people in this meeting for obvious reasons so we suggest restricting the numbers to three more people that everyone agrees with. Please suggest who you think these three new people should be and we can then try to work with the management to get us a meeting with the new set of people that are nominated.It’s heart breaking for us to see the price fall to where it is right now and please nominate by the end of the day because the sooner we can come to an agreement amongst ourselves on the forum,the earlier we will set into motion the necessary steps required to arrange the call.

[Logan]

My suggestion would be that they conduct a special call like they did in January so that no one can point fingers at any particular individual or group. This way each and every investor can participate.

The topic of discussion should be limited to the stock price crash and what plans they have to improve the sentiment. Other topic should be on the SHP – they have to give proper details and tell us why it was revealed so late and no details have been released even after a year.

We all can discuss and come up with relevant queries and form a list of questions. Investors who get a chance in the call should also stick to those questions and don’t let him finish until he gives a correct timeline. For ex if DAUM takes 6 months let him say 6 months instead of saying very close (for 4-5 years he’s been saying that).

[ved]

Dear Rathi_b, I appreciate and support your view. I also agree with Logan that, let’s come up with a list of questions and stick to it. Then, it does not matter who is asking. If we have to nominate someone, my vote is with you and Logan. Please request SKR for a meeting.

[akkithegrt]

I agree with logan, let the management conduct special call and notify through exchanges. Thank you Rathiji and team again for taking initiative.Request ceo for special call only on specific questions. Till then let us list a few points.Request him to be straight forward this time

[Rathi_b]

I see your larger point here @Logan and I also agree with @akki and @ved. The email ids of the compliance officer, CFO and SKR are available on the website, let’s all write a mail individually asking for the call from the management. Please ask that the call should be in the lines of May 2019 where 120 minutes were allotted and all the questions asked were patiently answered. Please let’s also prepare and send the questions that we want answered by the management and asking them not present opaque answers, but to give answers that actually show their intent. I hope all the members will write the mail to the management in this regard because if all of us ask, they just can’t choose to turn their face the other way. We all have our aspirations and goals of financial freedom attached to brightcom I request all the members to write a mail in this regard. Please also involve the people from telegram and other social media to drive this point home.

[akkithegrt]

I have mailed ,request all of you to write mail.

Rathiji please try to convey CEO directly to conduct a special call.

[Brightspot]

Everyone pls email and acknowledge here so that we know the number of ppl

[Brightspot]

Human tendency that if we find one UC or 10% upside we start forgetting about sending email to management and start praising him instead, guys as per fundamental this scrip should not be below 250-300 Rs , but now there are crores of sellers below 18, we all know that who is responsible for this pathetic valuation, Management can not escape by saying they dont know why scrip is not performing in each every conference call, they can not fool us on every conference call saying Daum is done deal and still not concluding it, management can not fool us on every conference call saying DII has specific season to buy when DII buying other scrips every day, please learn to counter when CEO is fooling around other than happy with whatever assurance he give

[Nikhilraj]

Is there a common format for the mails .please share the draft of the mail and the mail IDs ,it will be helpful for many .

[Brightspot]

SKR last time arranged conference call because NSE asked to provide correct and complete information to investors query, instead of giving reply to each and everyones email.. he called for call and wasted thousands investors time..this time please every contribute to it email and acknowledge here..Thank you

[akkithegrt]

Guys, I hope the maximum number of people have mailed. Let’s discuss what should be our next step.

Request all to be part of this discussion as it is we need to act asap

[akkithegrt]

7,000 crore (this year’s projected revenue) revenue-making company is trading at a 3500 crore valuation.

What can we do to awaken this sleepy management before stocks fall below single digits?

[ved]

I have mailed to IR for a conference. But I think, SKR will make an announcement only before the next con-call, which may happen post the quarterly results. Since, he is waiting for an opportunity to make that announcement, he may not do another con-call. But he should be willing to talk a handful of investors.

[Brightspot]

I have sent email to IR to conduct special conference call

[akkithegrt]

Thanks, @Ved.i Think the Maximum number of people must have mailed, let us discuss what should be our next step on priority.

[Author]

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