[vkhare789]

Patience is the key in this stock. People who invested in last one year have lost money. People who invested 3 years back and stayed on made great returns. I think when we have invested in such stock, we can not be near sighted. Lot of issues to be resolved and lot of surprises awaited. Definitely this stock is not for the faint hearted. 2022 was not a good year for BCG but we hope that 2023 will come with avenues of hope, positivity and returns. Hope that all issues including FA, daum and acquisition will see closure next year. Hope that by end of 2023, we can happily say that we invested in brightcom and we stayed on.

[radhutheoptimist]

I copied this from one of the Telegram groups. This is related to decent bulk deals. Please read the discussion points shown in the screen shot. Couldn’t figure out what is happening. But the numbers seem too big. Can experts in this group comment on this please.

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   Screenshot_20221229_053712_Telegram.jpg
   

[ved]

This is my hypothesis. These LLPs have huge number of shares and since the price has fallen so much, they are not able to exit. So, they are trading by getting margin against their shares (brokers will allow you to short a certain share without having margin if you already hold good quantities of it) and making 7-10% daily. Unless, someone with deeper pockets intervene, they have nothing to fear.

But, them not exiting completely is also a (somewhat) good sign for us. It may mean that they are also expecting the FA result to come in the company’s favor.

[Logan]

The CEO/company/management should not have allotted shares to these LLPs who do trading. Shares should only be allotted to genuine investors i.e long term oriented investors. Before they were allotted shares another group owned by one of the allottees had done intraday trading and when we raised this issue the CEO said it won’t repeat again.

Last year I finally thought that the CEO had changed his attitude for good but he’s repeating his earlier traits again (assuring us that he’ll do something and not even bothering about it later). He used to tell us that all the loans would be paid by 2 quarters in every conference call but it took years. Last conference call (and in previous calls) he said DAUM issue would be settled in the next quarter (he did give a commitment saying that) but still no news on that except only one notification which gave zero information.

Most investors would be happy if he doesn’t give any timelines or commitments and just execute things and then inform us or even better is telling the truth right away instead of trying to patch up things temporarily.

As an example – What he does is just to patch things up he’ll say DAUM will be done in one quarter when in reality he won’t be knowing how much time it’ll take. So it’s better for him to tell the truth instead of giving false hopes. If DAUM issue takes say 6 months or 1 year or 2 years or doesn’t happen at all then he should tell us frankly.

(Many times I’ve said that I don’t see Lycos as very important but when it comes to commitment part, I consider it as important)

What I’ve noticed is that he’s an optimistic person and doesn’t want to talk about negative things and gets annoyed if anyone points out negative things about him or the company. But running a public company he can’t keep that attitude when negative things have happened (some of which have happened because of him). He gets annoyed when someone mentions about promoter SHP but it’s his fault that he didn’t disclose it earlier or hasn’t given any explanation on that till now. Shareholders will face the consequences because of his actions (negative or positive).

[whyShares]

There are a lot of problems associated with Brightcom but, no one denies the fact that they have mastered the art Ad Tech and their software does work and is being used widely for millions, if not billions, of Ad impressions daily.
I am invested in this stock for years and believe in it. It is one of the most undervalued stock in one of fastest growing industries in the world. Have faith, BCG will have its day soon

[whyShares]

Here is image of BCG Peer Compare on Ticker Tape
https://www.tickertape.in/stocks/brightcom-group-BRIH/peers?table=valuation

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[kmr003]

It is deep pain to see BCG is 2022 worst performers,

As a long term investor frustrated as like many investors with same repeated mistakes from BCG management,

@Rathi_b , Sorry to bother you again and again, your messages years back given confidence,

Can you please tell me, Did SKR responses shown his intensions to resolve issues and bring transparency, and stock growth ? or met for sympathy of retail investors.

Franky bro I’m in blank, whole crowd is against, your input will bring some confidence, Thank you

Hope 2023 will be good for BCG

[ved]

There is a very popular saying in corporate, “culture eats strategy for breakfast”. So, irrespective of how good the company gets in innovation, if it cannot mend its ways, market will never give it the due respect. And culture flows top down. So, first the CEO needs to realize this and make amends.@logan in his comment above has beautifully captured what are the shortcomings that SKR must work on this year.

[buffet]

@rathi_b and team: you guys have met SKR. I humbly request you-Please share summary of the same w.r.t.on going issues(SHP,FA,Daum,Audio acq, increased operator activities etc).

Things are not going so gr8 for brightcom. I understand that all minute details can’t be disclosed. But you can share fewer/vague details for every1s benefits.

[Brightspot]

Guys Brightcom arranged conference call on 7th Jan 4pm to answer your questions,

Please prepare all your questions and he should answer them promptly otherwise there is no point in asking questions, NSE already asked clarification on incomplete and unsatisfactory responses provided by management

[Logan]

@admin, these are my queries for Saturday’s conference call, please review once and send them to the IR.

To the CFO, Mr.Narayan Raju

-Can you please give details on this notification shared by the company

Authorised Mr. S.L. Narayana Raju, CFO to file an application on behalf of the Company under
Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 for
the purpose of settlement of the proceedings initiated by Securities and Exchange Board
of India (SEBI) issued under Rule 4(1) of the Securities and Exchange Board of
India(Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995- Adjudication
u/s 15A(b) and/or 15HB of the Securities and Exchange Board of India Act, 1992 in the
matter of Brightcom Group Limited.

What is the application that you have filed on behalf of the company and what is the settlement about?

-You and Mr.Acharya were appointed by the board to work on closing the Lycos deal with DAUM. What challenges are you facing regarding this?

-What is your comment on the forensic audit done by SEBI and how would it impact the company if the report is negative? We know that this is hard to answer given that it’s a sensitive issue and SEBI has not yet shared the outcome but can you please give some details on this?

-Why isn’t the parent company sharing the audited results of its subsidiaries? What are your thoughts on this since the majority of the revenue comes from these subsidiaries?

To Mr.Peshwa Acharya,

-What are your thoughts on forensic audit?

-As the president of group strategy, please share your thoughts on Lycos deal with DAUM and the audio ad company acquisition. Why is the company taking so much time to close these two deals?

-To the CEO, Mr.Suresh Reddy,

-Thank you for initiating this call to address shareholders’ concerns and also for improving the communications with the shareholders (through mails and calls).

Because of a few issues we have no choice but to focus more on them than on the business and growth aspects of the company. We request you to address all these concerns and close all the pending issues at the earliest so that we can start talking more about the future of the company.

-Update on forensic audit. How will you address the shareholders if the report comes out as negative?

-Is the audio ad company acquisition canceled? If it’s not canceled then why is it taking so much time to close the deal? Are there negotiations still on and are they related to valuations or any other topic? Can you provide some details at least on this?

-What plans do you have to bring stability to the stock price? We know that the movement of stock prices is not in your control but if you take necessary actions you can bring some stability. The past few years have been a rollercoaster ride for the investors and we would appreciate it if you would take necessary actions to end this.

-Update on shareholding pattern of the promoters. Why didn’t you disclose the actual numbers earlier and waited till 2022 to disclose? Was it because of any threat of a hostile takeover etc?

Will you get the pledged shares back or should we consider the current holding as the final promoter holding?

What if SEBI levies penalty on you for this? And how will it impact the shareholders?

-Few LLPs who were allotted shares back in 2020 and 2021 are doing intraday trading and controlling the stock prices of the company. Why did the management issue shares to these LLPs? You assured us that they won’t do this kind of trading and that those shares won’t come to the market. What actions will you take on this?

-Why did the new company secretary quit? Is it because of the forensic audit and other issues?

-There is a trust deficit in the market wrt BCG. What plans do you have to change that?

-When can we expect Q3 results?

[Brightspot]

@logan please add nasdaq listing also, we are not asking that question nowadays and management also not taking up that topic..but few quarters back it had been hot topic..just let them realize that we can not have discussion on it for time pass, his answer for that topic was parent company need to get proper valuation for it..if corporate gov is bad how can company get valued

[radhutheoptimist]

If this is not the right time to buy shares from open market for ESOP…then when. Why they are waiting.Is management expecting any further fall in the price. Let’s not a hear answers like they don’t want to create artificial demand for the stock. They have their confidence first to the market.

Please include this point also in the question to the management.

[admin]

@Logan – Appreciate your effort in framing all valid questions. Thanks to @Brightspot and @radhutheoptimist. I have mailed the questions to IR.

Thank you for arranging the conference call. Here are the questions,

To the CFO, Mr.Narayan Raju

– Can you please give details on this notification shared by the company

Authorised Mr. S.L. Narayana Raju, CFO to file an application on behalf of the Company under
Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018 for
the purpose of settlement of the proceedings initiated by Securities and Exchange Board
of India (SEBI) issued under Rule 4(1) of the Securities and Exchange Board of
India(Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995- Adjudication
u/s 15A(b) and/or 15HB of the Securities and Exchange Board of India Act, 1992 in the
matter of Brightcom Group Limited.
What is the application that you have filed on behalf of the company and what is the settlement about?

– You and Mr.Acharya were appointed by the board to work on closing the Lycos deal with DAUM. What challenges are you facing regarding this?

– What is your comment on the forensic audit done by SEBI and how would it impact the company if the report is negative? We know that this is hard to answer given that it’s a sensitive issue and SEBI has not yet shared the outcome but can you please give some details on this?

– Why isn’t the parent company sharing the audited results of its subsidiaries? What are your thoughts on this since the majority of the revenue comes from these subsidiaries?

To Mr.Peshwa Acharya,

– What are your thoughts on forensic audit?

– As the president of group strategy, please share your thoughts on Lycos deal with DAUM and the audio ad company acquisition. Why is the company taking so much time to close these two deals?

-To the CEO, Mr.Suresh Reddy,

– Thank you for initiating this call to address shareholders’ concerns and also for improving the communications with the shareholders (through mails and calls).

Because of a few issues we have no choice but to focus more on them than on the business and growth aspects of the company. We request you to address all these concerns and close all the pending issues at the earliest so that we can start talking more about the future of the company.

– Update on forensic audit. How will you address the shareholders if the report comes out as negative?

– Is the audio ad company acquisition canceled? If it’s not canceled then why is it taking so much time to close the deal? Are there negotiations still on and are they related to valuations or any other topic? Can you provide some details at least on this?

– What plans do you have to bring stability to the stock price? We know that the movement of stock prices is not in your control but if you take necessary actions you can bring some stability. The past few years have been a rollercoaster ride for the investors and we would appreciate it if you would take necessary actions to end this.

– Update on shareholding pattern of the promoters. Why didn’t you disclose the actual numbers earlier and waited till 2022 to disclose? Was it because of any threat of a hostile takeover etc?

– Will you get the pledged shares back or should we consider the current holding as the final promoter holding?

– What if SEBI levies a penalty on you for this? And how will it impact the shareholders?

– Few LLPs who were allotted shares back in 2020 and 2021 are doing intraday trading and controlling the stock prices of the company. Why did the management issue shares to these LLPs? You assured us that they won’t do this kind of trading and that those shares won’t come to the market. What actions will you take on this?

– Why did the new company secretary quit? Is it because of the forensic audit and other issues?

– There is a trust deficit in the market wrt BCG. What plans do you have to change that?

– When can we expect Q3 results?

– Any timeline for ESOP share purchasing?

[NIRAJ1]

concall summary : source from a group : i am just sharing it here… 1- Gratitude for staying with company and wishing a prosperous new year.
Raju CFO speaks- FA- replied to regulatory authorities. 6 yrs and all subsidiaries. Unique business model. Annulment process in way. No cash paid to MM. All are consolidated companies are AUDITED. Each subsidiary is audited. Israel subsidiary by E & Y. Company not involved with 5th & 6th trades.
Satish Speaks- Audio acquisition. All due process adhered to. Update in February.
Peshwa speaks- Discussion going on weekly basis. SBLC from bank. Paperwork is being done. Will be finished soon. Quantum Computing in process. for all queries. Trying to establish more robust mechanism.
Shareprice- company has performed very well. More than 40% growth. Results sooner this time. Outstanding issues are taking long time. We take responsibility for informing early some things which are jow taking time. It will shine brightly in 2023. Market will recognize us soon.
Vaibhav- Suggestion to hire independent auditor to audit and give report. Answer- will evaluate. Daum once done we will upload audited results. Pledging of shares to appear back in promoter holding. We are fighting back to get back shares. The people who have sold it will have to buy it from the open market and give. Q4 DII meeting..
Raju and Peshwa- concentrated strategy to get them on board. Each of FII & DII have their own strategy. ESOP trust may buy. Funds are raised to grow the company.
Intent IQ patnership – no answer. Its mainly in Israel. The collaboration will help us monetize a lot of traffic. Why Equity dilution was done at so low rates. We wanted to be a debt free company. Positive free cash flow company. Strategic decision to stay out of debt. Will play out well longterm. Better that debt companies are debt free.
Promoter shareholding- before Match was 24% portion was pledged which was transferred off market. So it was reported as not being Promoter. Pledged shares- trying to get back. Same old answers being given… We are aware that shareholders are suffering in spite if company doing well. Few reasons that are there will be resolved. Long term vision- We are in an excellent field of business. Evolving business and we have to be nimble enough.
Abroad listing- will look at it when the markets are conducive. We will make a few deals with the 5G players.
Closing comments- Grateful for opportunity. Our dream is to revolutionize digital marketing. In 25 countries. Future- will bank on your support. Prirotized building sustainable business model. Not worried by short term.

[Logan]

In the last conference call the CEO said that the management people’s bandwidth is getting stretched etc but he’s not taking any action to resolve that. Arthi consultants sent the compliance certificate/letter to them on 5th January but the company shared it on 21st January. Every other company has shared that certificate in the first week of January except BCG. The same with shareholding pattern, which too was shared only yesterday. If there was a company secretary working in the company then that person would’ve taken care of that but the CS quit and his replacement will start working from mid February. I’m not sure why they can’t hire someone who can start working immediately.

It seems like most of these LLPs who were allotted shares have sold entirely and their selling is one of the reasons why the stock is underperforming. I asked about their trading activity to the CEO in the conference but he did not answer it. I request all investors (who get the opportunity to ask questions in the conference call) to ask about the LLPs selling as the CEO may ignore to answer all our queries that we send.

The CEO can’t complain regarding bandwith of the management because it’s his responsibility to hire suitable people at the right time. He gets serious only at the last moment. One very good example is previous CFO, Mr.YSR left in March but his replacement was found only in June and he started from July. Who’s fault is this? Why couldn’t they start looking for Mr.YSR’s replacement six months before his tenure ended? Same with company secretary post.

Almost everything, they do only on the last day. Paying dividend was done on the last day, issuing bonus shares got delayed, CFO replacement was hired 3 months after the old CFO retired. You get good valuation when you do things as early as you can and not at the last moment. Also most of these aren’t hard to do if the CEO and his team are more flexible but BCG’s management is too rigid and they don’t suit the modern standards. Everything has to go through the CEO like how things are in private companies and startups. As the company progresses and becomes bigger, the CEO has to handover some of his responsibilities to others. Like I’ve said many times before, he may be good at business related things but on other things he’s too slow or takes too much time to understand the situation. I’m not sure whether it is careless attitude or laziness but this has to stop.

I appreciate that they hosted a conference call to answer few queries but that was unnecessary if the communication with shareholders was very good in the first place. The IR department won’t be knowing about any development and only response they would give is “we will update you at the right time”. What else can we expect them to say when they themselves don’t have any information? Only good thing now is that they are atleast responding to our mails and calls. Like winning a Consolation prize which isn’t worth anything.

[Yogi]

Thank you for some words on the current situation Logon Sir.

Sir, You could have delved more on the exiting LLPs. Many of the retailers are talking of exiting too as there is a lot of confusion in their minds. Please write more on the Cause (mostly greed) and Effect of the exiting LLPs which will enable us to take wise decisions.

What do you foresee the future of the company/stock in 6/12 months & 2/5 years? Your input is of Very Great Value to us.

[Logan]

Thanks @Yogi. I don’t think retail investors like us can know or even try to guess about all that. We can only talk about the developments happening and the notifications shared by the company on the exchanges. In the last two conference calls I had asked the CEO about these LLPs and he ignored it in the January call and gave a very diplomatic answer in the November call. We can’t do more than that because conference call is the only way we can communicate/connect with them. Even if we do go to the company’s office they won’t reveal anything. He’ll just say that their lock-in was over so they sold etc which is not in his control.

Regarding future and other topics, as Warren Buffett says in Becoming Warren Buffett documentary that “he likes to think about business or investment problems, and that they are easy and that human problems are the tough ones. Sometimes there aren’t any good answers with human problems and there’s always good answers with money (for business and investment problems)”.

Wrt to BCG, if we analyze, most of the issues/problems are human or other problems. SHP is the best example as it’s a human problem. It was not communicated properly. In the last conference call we got only little information on that but we still didn’t get any clarity. I think we investors can’t be sure how much the actual promoter holding is and whether they’ll get back those pledged shares that were sold. In MCA they are showing that the holding was low in March 2021 also, which means those shares weren’t sold during the peak prices of the stock.

At first Lycos-Daum was a business problem and now it has become a different problem. It could’ve been solved if BCG paid the money that Daum asked but that would be like paying more for something which isn’t worth much. But on the other hand, not just the valuation of the company went low but even it’s image got damaged because of the Lycos case. These are hard to judge even in retrospect. What if BCG paid all the money that Daum asked and kept Lycos but didn’t invest money in starting Brightcom (programmatic platform) because of lack of funds. Now the company is doing well because BCG was one of the earlier companies to start the programmatic thingy but what if BCG didn’t start it at all or started too late. Many companies went bust or struggled because of the competitive nature of the industry and the duopoly nature (Google and Facebook). Smaller companies are doing little better only from the last 1-2 years and that too because of the pandemic. Facebook is struggling because of the strict privacy rules that Apple implemented but others didn’t struggle as much. Snap, Facebook (which includes Instagram) are struggling whereas Tik Tok is growing.

Getting back Lycos now is more to do with the image and less to do with the business as it doesn’t bring anything important. In the world of ChatGPT, decentralized internet, streaming and CTV etc I’m not sure how much Lycos will help but it will be like taking some burden off your shoulders and have a better image.

Business wise company is doing good but as always, other issues get highlighted more and I’m not sure what happens wrt to all those issues and the timelines as some are in management’s hands and some are not. With other companies that I have invested in, most of the problems are due to industry related and their valuations depends on their business. Buying and selling always depends on individuals and like I always say, investors should talk to the management first and if they are not satisfied and if they suspect anything then they should approach SEBI or other authorities.

[Yogi]

Thank You so much sir.. Just that some narrative on the present situation by “Others” who many believe are experts gives the Edge in making decisions. Discussion in Telegram and WhatsApp groups do help a lot.

CI Sir’s take:
https://t.me/conservativeindiangroup/24402

All views are personal and subjective which are prone to market risks. Ultimately, Decision to buy or sell are to be made by the Individual and nobody is responsible for the same.

[Nikhilraj]

We have a strong retail investor group like this forum and telegram group having about 7.5K members . We retailers work better than the management for the good will of the company.. it will be funny if all retailers connected together decided to buy 1000 shares in a particular day and hold till atleast ATH. Single day collect around 70L (7K x 1000) . With the current share price it is not a risky move for a retailer .Same time it will be a shocker for the operator group (if any) who wants to keep the price lower .

[Author]

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