[Logan]

The match felt like a rollercoaster ride. My heart was in my mouth when DK got out but thankfully Ashwin was there and maintained his cool and got us to the finish line.

I don’t know what to write about Virat Kohli’s innings and his commitment to the team and our country. Take a bow legend.

I wish everyone (including BCG’s haters) a very happy Deepavali. Jai Hind.

[Yogi]

Logon Sir, You have very well articulated the emotions experienced by one and all. Indeed A Wonderful Gift to ALL Bharatiyas on the Eve of Deepavali, the Festival of Lights Celebrating Good over Evil. I guess majority of Indians across the country/world would spend exceeding their planned budget because of this exhilarating win. Everyone is Happy… As a consequence, the coming quarter results of most companies would be a notch positive than the expected including our own Brightcom Group Limited. Taking this opportunity to wish One and All A Very Happy, Blessed, Healthy and a Prosperous Deepavali. Jai Hind. Bharat Mata Ki Jai.

[drpram]

SHP analysis was not done by experts this time .. I expect the analysis can be posted in SHP portal by learned members like Mathews.. Expecting the same ..Either positive or negative as always we discussed..Thanks

[kiranj]

Divident got credited now. Cheers

[m4max1979]

On the Bse site, promoters shares pledged is showing as Nil. Is that an anomaly or have the promoters unpledged their shares.

[whyShares]

Why the increase in FII investment in BCG is sending the right signals

Brightcom gets about 90% of its sales from foreign countries. There are doubts whether some of these accounts are cooked. The forensic audit was ordered by SEBI for this reason.

Only the FIIs have the resources to check BCG operations in foreign countries, especially BCG operations in South America.

So the fact that the FIIs are increasing their stake in BCG should give us great confidence in BCG

[tanv151]

@whyShares ji,

You bring up a good point and I would like to give my point of you on this if that’s okay.

It’s a game of willingness, FII and others who are increasing their stakes, they are doing it because they are willing to put in the time and effort to continuously research on this stock, and whoever has the will, they will figure out the way to find resources to get more info. Like the popular saying “Where there’s a will, there’s a way”.

You would be surprised to know that off the 3.79 lakh shareholders,
ONLY 72 shareholders attended the AGM through video conferencing
ONlY 6.77 crore of public votes polled (in other words just 6.77 crore shares)

We see so many people voice out their support/concern about BCG on a daily basis using various platforms. However, not even 1% of the overall shareholder population show up on AGM, let alone conference calls. It is important for everyone to join these meetings to raise the concerns or provide feedback to the management. It is as simple as, if you have a problem with someone then ‘TALK to the person instead of talking ABOUT that person’.

Another thing I noticed was, off the 6.77 public votes 26% were against the re-appointment of Mr. Vijay Kancharla as the BOD. This is a great indicator of what shareholders think of his visible involvement and contribution.

Attachments:

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[Logan]

The FIIs investing in BCG are not active funds and most of them are passive funds, means they invest in stocks that are part of an index or indices. If a stock is part of an index they buy and if it’s removed from that index they sell. Because BCG is part of BSE 500, A group etc, funds are buying the stock.

They select stocks based on many criteria, like market cap, P/E ratio, sector etc and once selected the funds don’t do research like how an active fund does. They don’t talk to the management, check the competitors, verify the books etc.

The other FII/FPI are the funds that bought preferential equity in the company when BCG raised money last year. They on the other hand actually talk to management and invest (because their money goes into the company unlike other funds who buy stocks from the market).

For domestic mutual funds to invest, the management has to take the initiative and talk to these people regularly (like almost every week or twice a week sometimes). I’ve seen in other companies where their management hold analyst meet very frequently. What my understanding is that the domestic mutual funds were uncertain about the company because of the Lycos case with DAUM. In one article (I don’t remember which) they wrote that analysts were uncertain because BCG (back then Lycos) moved into new areas and analysts were sceptical on that. I think they were talking about Lycos Life and how it didn’t succeed. And later Lycos case happened and BCG had to lose Lycos and brought more uncertainty. If Lycos is brought back and if the management explains clearly to analysts about their business and future plans, even domestic mutual funds will start investing. Again even here the management has to take the initiative.

I agree with @tanv151 on attending conference calls and raising concerns. We see so many people talk negative about the company and influence others but if they are that good and always right then why don’t they expose the company by talking to the management in the conference calls? Writing in various platforms and influencing others is easy but doing the actual work takes effort.

Regarding Vijay Kancharla’s appointment, I think most people voted against it because of reduction in his holdings. Institutions prefer companies to move away from founder/owner mentality and be more like corporations.

I don’t know what he contributes to the company but people are angry that there was a reduction in his holding and till they get clarity he won’t get any love from the investor community. The CEO and Vijay Kancharla built this company from scratch with their hard work and effort but they are to be blamed for the current situation.

I’m guessing the promoter holding was less than they were actually showing and didn’t want investors and the market to panic looking at the low holdings so they dragged it till they acquired those LLPs. I’d have preferred if they had told us what the actual holding was. Saying the truth and facing the consequences is far better than hiding and postponing it and losing trust later (which is happening now).

The business is good, industry is good, there’ll be little slowdown like every other industry but it is bound to bounce back once the recession and inflation fears cool down but the management/promoter attitude must and should improve. They have the responsibility of looking after the interests of more than 3.5L shareholders who have invested their hard earned money.

One thing to appreciate is that they have held conference calls after each and every quarter without fail and also held it after the MediaMint deal was cancelled (reworked according to them). The management said that corporate governance will be the third pillar and they’ll focus on it more and we all will appreciate them if they do that.

[odysee]

Spoken from the heart @Logan, and laid out as it is. The truth, I suspect, is pretty close to your reflective comments on the various points you have touched upon.
The last paragraph expressing appreciation of some regular management action like timely conference calls took the sting away from the gentle ‘slap on the wrist’ comments in preceding paragraphs.
I would not be so forgiving though about the apathy displayed by them in the gradual but steady deterioration in sentiment currently prevailing among the retail investor community.
When you choose to be a public listed company, and you publicly applaud the quarterly increase in the number of shareholders, quarter upon quarter, then you are seriously obliged to address the retail investors’ apprehensions and concerns where they see a steady erosion of the value of their investment for no visible or obvious reason.
There are enough speculative comments in various fora that are mostly trash, but some could well be closer to the unpleasant truth of deliberate neglect of a deteriorating valuation that could benefit a few at the cost of many.
Many have touted the payment of the final dividend by the due date as an indication of good corporate governance. I would temper that by saying that it is only in compliance with law and the rules and regulations in force. If they had completed the distribution well before Diwali, then it would have been a positive indication of the building up of that third pillar you have referred to.
It is never easy to reverse the perception or reality of ‘erosion of trust’. But it is the bounden duty of Mr Reddy and his team to do just that.
Enough of this bleeding of the trust and consequent erosion in value.
We ( the company, promoters, shareholders, stakeholders) deserve better!

[Logan]

@odysee, the best solution is that the management should bring in someone who can guide them on topics related to the market/investors. With SEBI’s approval and considering all the legal rules and regulations we retail investors can appoint one person and nominate him/her to the board. That person can represent every small investor.

The challenges to this are the management may not agree to it as they’ll have to disclose sensitive/confidential information or some investors may not agree with this idea because they’ll think that the person may do partiality as he/she may give sensitive information only to a particular group (which I also believe is a serious thing to consider which can’t be ignored)

All these are unnecessary if the management keep up with their words and improve corporate governance and communications with the investors. I don’t know what’ll happen with the FA but even if it comes negative the business will still go on. Mr.Shankar Sharma said on live TV that the company has followed the proper accounting guidelines when they did the impairment.

Sebi gives same penalty even if the issue is small. Companies approach Securities Appellate Tribunal (SAT) and sometimes SAT will give more time and relief to some companies.

This is 1-2 months old news but I saw this just this weekend and will check properly the coming weekend – Securekloud (8k Miles) got a negative report on forensic audit and sebi put fines and penalties like barring the CEO and other people from securities market for 2 years and ordering the company to remove few people from the board and management but the company approached SAT and SAT gave relief to them saying they can be reappointed and continue to be board members etc.

The order was very big and had legal terms which was little difficult to understand for a layman like me but what I understood from that was that sebi found irregularities and even the management of that company had agreed that they had done irregularities but interestingly SAT still gave relief to the company. They said that since the company did those irregularities before 2020 and since then they haven’t done any, they can continue running the company and those people can be re-appointed.

(I’m not saying similar thing will happen to BCG or I’m not saying negative FA result is good or anything, I’m just sharing what happened with FA outcome and later events in Securekloud)

[odysee]

@Logan, the prospect of a retail investor representative being appointed on the board is pretty dim in my opinion for the precise reasons you have indicated for it being a non-starter.
But we can still hope to see a market savvy professional of repute coming on the board who can steer the management in decision making and market sensitive communication techniques.
In your post prior to the last one, you had very aptly and appropriately pointed out the lack of data pertaining to the Daum settlement and the new prospective Audio tech acquisition with regard to amounts, timelines and name in the case of the latter.
As regards the FA, I would keenly look for the regulator’s comments and ruling on the impairment of assets policy, as well as any adverse comments if any on the truth and fairness of the results of the subsidiaries , as all books and entries for multiple years upto 31.3.2020 would have been scrutinised.
The imposition of some penalties or fine is pretty much a given as you have mentioned in relation to deficiencies in compliance issues related to reporting etc. But we shall see what the meat of the report is.
Fingers crossed 😊

[anand84sharma]

20/10/2022
https://www.koreatimes.co.kr/www/tech/2022/10/419_117099.html

Daum income plunges 42.5% in second quarter

Daum Communications Corp., the operator of Korea’s second-most visited search engine, said Friday its second-quarter net income tumbled 42.5 percent on-year due to the absence of a one-time gain.

Net profit came to 22.4 billion won ($19.9 million) in the April-June period, compared with a profit of 38.9 billion won a year earlier, the company said in a regulatory filing.

Sales rose 12.7 percent on-year to 116.5 billion won over the cited period, while operating profit climbed 1.9 percent on-year to 29.8 billion won.

Daum Communications said that last year’s second-quarter earnings included a part of proceeds from the sale of its U.S. subsidiary Lycos Inc. Daum acquired Lycos in 2004 but sold it to Ybrant Media Acquisition Inc. in 2010.

For the first six months of the year, net profit fell 32.5 percent on-year to 43.6 billion won, while sales rose 13 percent on-year to 226.7 billion won. It also posted 56.9 billion won in operating profit in the first half, sliding 4.9 percent from a year earlier.(Yonhap)

[tanv151]

@Anandji,

If I am not wrong this is an old news. If you see the posted & updated date on the link you have shared you will see the date as 2012-08-10 09:54, therefore I believe the part payment that is mentioned here is nothing but the first payment was made by Ybrant Digital then.

[kiranj]

BSE Announcement: BCG Q2 result on November 12th

[vgsatwork]

Follow up to Post #14406 SEBI SCORES complaint on promoters SHP

The case that I had raised got closed today with this closure comment from the case officer

“On the issues of incorrect disclosures of shareholding of promoters, Company replied following i. Prior to January 2021, various of our shares were pledged, and the same was executed through the transfer of shares to the lenders respective accounts. It is pertinent to mention that shares were transferred as per terms of agreement, where the voting rights of the shares were still with the promoters. By virtue of the same, the shares were being disclosed as being held by the promoters in terms of various provisions of SEBI LODR Regulations 2015. ii. Subsequently, in quarter 1 of the year 2022, our legal counsels dealing with Securities Law matters advised us and explained to us that once the shares are transferred from Promoters Demat accounts, the same will be considered as sale as per SEBI Depository and Participants Regulations, 2018. iii. Pursuant to obtaining the said opinion as to the correct interpretation of prevalent regulations of 2015 and 2018, we rectified our records and intimated the stock exchange accordingly as per SEBI LODR Regulations 2015. iv. Hence, we dutifully informed the stakeholders of the compliance with the relevant regulations, as per legal advice received by the Company, as to the correct and lawful interpretation of SEBI regulations related to such matters. It may be noted that the issues are under examination of SEBI and appropriate enforcement action shall be initiated against the Company for the violations of SEBI rules/regulations.”

It appears to be response from the Company forwarded directly to me and the case is closed.

I will leave this to you all for your own interpretation of this response

[Logan]

Guessing Adtech companies’ results is very hard. Some do very well and others do worse in the same period and the US market is so fickle that even after having great quarters some stocks fall 10-20% when they miss analysts earnings/revenue estimates by even 1 percent. The Trade Desk had a great quarter but the management gave revenue guidance little short of analysts estimates and the stock tanked. It doesn’t make sense to me.

Regarding results of other companies, TTD and Perion had great quarters whereas PubMatic and Magnite were average and Criteo was below average.

TTD was down 8% yesterday even after impressive results, Perion was up 3%, Magnite is up 18% in after hours trading after an average quarter (compared to TTD and Perion). PubMatic is down 14%.

So valuations of companies depend mostly on what analysts estimates say and the growth of the business. Results good but below analysts estimates then stock down. Results average or bad but do better than analysts estimates then stock up.

Suppose company XYZ grows above 20% every year for 3-4 years and the next year it grows 10-15% also that’s bad in the US markets. It’s crazy. Magnite was trading above 60 last year and now it’s below 6. Even if you have a great business but grow little less then the stock will crash.

[odysee]

Unfortunately, there are no real certified analysts tracking BCG.
The only ‘professional analysts’ we encounter are on the Moneycontrol board.

[Logan]

Yesterday Magnite was up 65% (single day), TTD up 20%, Criteo 10%, PubMatic 11%, Perion Network 7% and the Nasdaq index was up 7.35% in a single day.

In US markets both selling and buying are crazy. Stocks reach a point where they’ll be way overvalued and then in the next few years become way undervalued and then become overvalued again and on and on.

[nitin_asce]

Fantastic results by BCG. More than my expectations.

Just saw another positive development, the concall transcript of June result concall is uploaded on bcg website after long time.

Waiting for daum closure, fa closure and audio acquisition. Stock can fly anytime.

[Author]

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