[Shoumik]

My wife is also working. So at the moment i am using my complete salary to purchase this stock each month. No other stock for me. Completely focused on this one.

[108BULLGURU]

WOW.
That is called conviction with confidence.
Just imagine if current investors can ask 1000 of their friends to
just buy 10000 shares each of BCG at CMP that is 10 million shares,what it can do to the stock.

[Shoumik]

Yes. Lot of this confidence comes from the information learnt from you Bullguru. Thanks a lot for the insight. Hope more and more people join us with conviction and stay along till they are rewarded handsomely.

[108BULLGURU]

That is good to know.
I will be very happy for you and all the long suffering investors who bought so high when it turns around.
My sight is now on May 2020.
Looks like by that time all the black marks on BCG
will be behind us.

[talksense]

Now all retail investors eager to know whether OAK is exiting or their maximum period limit to hold , whether co management made any alternative arrangements to solve this issue. 3.3 crores market may absorb but with pressure… out of market settlement is possible.. please post well considered view based on present circumstances…

[Shoumik]

good morning friends.
Let begin our journey for discovering to value of this company.
When we see the NUMBERS for a company which are interesting we have to go ahead and try and find out the STORY behind those numbers.
The conversely when we catch hold of a intresting STORY we have to go deeper and figure out the numbers.
For purchasing a great stock, a true compounder both the Story and the numbers should marry each other.
They certainly MARRY in case of this company.
Let start with the story first.
BCG is working in atleast three sunrise sector, Digital Adtech, Artificial Intelligence and Machine Learning.
All these three sector are growing sectors working towards the betterment of mankind.
All the three sectors have vast a market and business potential.
The scalability of these businesses is huge and only a very small portion of vast landscape has been explored upto now and so so much still remains to be explored.
The growth opportunity is not only local but global in nature. And we have already set up offices in 22 countries which have shown exponential growth with addition of 5 more countries.
This the largest business is the largest business entity of our country working in all three areas.
The adtech business platform is world class and can compete with any company in the developed world.
It has invested heavily in these three businesses over athe last couple of years the fruits of which be reaped in the near future.
It works in a high margin business and is amongst the best at commanding high margins. This reflects the quality of the business to special.
Has all the blue chip companies as its customers.
The margins are superior when compared to the IT industry . The reason being the IT industry has to employs a huge work force and keep on recruiting new people each year to keep growing. But with these three sunrise sectors they don’t require a large workforce. For example tradedesk has as on date have only 1200 employees and BCG has still lesser.
They require quality workforce . BCG has world class employees from countries like US, Israel, Europe and India. our next generation children are very capable and employable in these companies.
The IT sector is like old Iron and steel industries at the start of the industrial age. While these sectors are a new age sector like the Auto industry emerging after the iron and steel industry.
The old software sector is the now a hardware which provide a base on which these new age sectors will be built. These new sector work on Platform and innovation module. Hence very large workforce is not required in this sector. They only requirement is very very smart and skilled manpower is required and BCG has this in abundance.
And therefore these new age sectors don’t require any capital to grow . The platform and innovation module of BCG can be compared with companies like Amazon, Facebook and Uber.
The business model of BCG is highly attractive and it has already demonstrated its earning power in the past with build up of more than rs 3000 crores in book value.
Some more points on the STORY part some time later.
In next sharing we shall take a look at the NUMBERS and quantification of the quality.

[Sobha]

Shoumikji, waiting for next part of your reply. Please do a comparison of the technology used by AFFLE. Is their very high PE is justifiable?

[Shoumik]

Good afternoon madam. I have posted my second part looking at numbers, and quantification of quality through numbers and also about value unlocking aspects for BCG , yesterday under the topic ‘Looking at the balance sheet’. Kindly go through that post for getting the second part of the above post and let me know about your thoughts on our beloved BCG.

[Bitran]

Hi all, Just curious to know what percentage of shares one needto ask for a board representation? Anyone has some knowledge in this area?

[108BULLGURU]

Great question.
Need to represent the small retail investors also on the board.
Who will like to be on the board though when the perception about the
accounts are not so great.

[Bitran]

It would be difficult for retailers to have representation on board. Even if all retailers join together, who might want to do it as you put it rightly. I was thinking from G’s perspective. If they have enough holding to ask for a board representation. Not sure if they are interested also. Trying to understand their logic of putting more money into this. Is it just for profits or they have much more in their mind.

[108BULLGURU]

hARD TO KNOW the motive and WHOSE HIP IS JOINED WHERE IN THIS
financial world.
Hence need to follow the chart and manage the risk.
See what happened to long term investors like us here.
Averaging a falling market
mostly kills financiallly.
Investors kept on comparing with trade desk and BCG being 1000-1200 stock and
now AFFLE 1700.

[Shoumik]

Good evening friends.

The last two days dip and the volume show’s that a lot of new participants are buying into BCG. The price has again been hammered by operator down . They have to finish their unfinished agenda it seems.

The story telling has abruptly been moulded and they now have to hurry up on many things which still remains unfinished from their end. They have to show oak going out at the bottom. They have to get the possession of pledged shares by getting them released.

These events may be happening on the sidelines . Meantime they are loosing upon their quantity at this dirt cheap price. Many have come to know about this share now.

We have waited and can still wait for long. No pressure on us.

But the pressure is now building upon them to act quickly .
They wanted some more time to stage the various events before us but investors and new ones specially are in a hurry to buy tickets before the gala show. This is making the performers more nervous as they wanted to perform in a almost empty auditorium but crowds are pouring in and filling up the seats.

They thought by giving that same boring performance to the ones who have come in , with the same old dialogues , people will get fed up and leave the show.

But this cannot happen now, as people have now become fans of BCG and are willing to wait for the grand blockbuster when this boring drama / circus is over.

Many have gauged this and are calling their friends and relatives to come inside buying the show tickets which are dirt cheap .

These newcomers are fresh and can wait for long and we the dedicated ones are sleeping till such time we don’t enjoy the show and the performances.

So the show must go on, good or bad . But it is causing the performers more harm than good.
When they take their circus to US through US listing the ring master there is very tough. There, they have to give a great performance even if they are tired.

Till that time comes we are also acting as a DUMB GUY who knows nothing. The only thing we know is to purchase this one as when we can , sweep it inside the mattress and sleep over it.

Only when it starts jumping and the gala show begins ,shall we wake up from our deep slumber to enjoy the blockbuster. Till then
Good night Sweet Dreams.

Friend better Dream Big. This time your dreams are going to come true. BCG is the best share to invest in. Don’t have any doubt whatsoever.

We have to call some VIPs to the show now, to make these people more and more nervous. To end this drama we have to now call Chief Guests to the auditorium.

Chief Guest like Mutual fund guys. Expose this stock to all the mutual fund Houses through email and on their various sites.

Also ace investors should be asked to go through the credentials of this stock . Mail these ace investors like Mohnish Pabrai at Pabrai funds , Ramdeo Agrawal of motilal oswal, Nilesh Shah, porinju Veliyeth, Ramesh Damani, Rakesh and all the who’s who’s of stock markets to bring this one into their perspective. These people have deep pockets and can buy huge in one go. Strong people and strong foundation needed for a tall building.

[Bitran]

@Shoumik, can you comment on the preferential equity announcement?

[Srd.rdx]

Does anyone knows, If Mr Reddy has given his money to clear the Bank loans ?
Was that admitted in the concall 3 months ago?
Attending this con-call , I could make out his interest to subscribe the preferential shares.Not sure if he has already given some personal money. If yes what is the amount he has given to the company ?

[Sobha]

He said that his personal money is used for clearing loan.. He further said, there was pressure from banks through different channels. More over he said, he is happy to purchase preferential shares for rs 10…

[Srd.rdx]

Thanks for the updates.
The price of allotment would be the first stop for the BCG!!
Hope My Reddy commits his money to the preferential shares and rest it all will be taken care of!

[108BULLGURU]

I think he has .
Around 25 crores.

[Shoumik]

Good evening friends.

I would like to give all the forum members old and new the big picture here and the valuation our little baby is going to see soon.

The space in which BCG works , Digital Adtech, AI and ML are all growing sectors and carry a Lot of potential to grow.

One can question why these sector Companies have such Hight PE ‘s.

The reason for the same is all these Sectors are disruptive by there very nature.

What exactly is the disruptive power of Smart Tech. We can all better understand the same through the below explanation.

Just as land line telephones companies business, have been disrupted by the Advent of mobile telephony. When mobile companies came to the scene most of the customers switched over to mobile networks due to their obvious advantages, leaving the fixed phone companies high and dry.

When mobiles came so with it came the Sms, whatsapp and various social networks. This change in habit of the people buried the companies like Archives greetings which is only one of the many example . There are many such companies whose business have reduced and they had to close shop.

4G Mobiles have become very cheap these days at entry level and so also the 4G mobile service providers services This has caused a EXPLOSION in the users of 4G mobile phone technology and the internet , FORGET India , all over the world.
The opportunity is GLOBAL in nature.

The SCREEN TIME has SHIFTED from television , newspapers and Hoardings , standing in queues, moving from one place to another for various goods and services , to Mobiles phones and computers because of the internet. Even Cable content providers are being sidelined by the smart TV sets which are used to see the contents from mobile to tv.

People these days, purchase online, pay their bills online, study online, find recreation online, read news paper and watch TV online, order meals and medicines online, work online, read books online, send gifts online, express their feelings online, book tickets for movies, taxi, planes ,train and buses online, do business online, find friends and partners online, search for content online, laugh cry paise support online, form social groups online , share online . And when this online thing gets to their heads they find Peace , Solace and Spiritual Enlightenment , guess what , that too……. ONLINE.

Therefore all the advertising companies have to go to places where the CROWDS are HOOKED , so as to market their products and services.

Digital Adtech is acting as a disrupter for the existing MODEL for distribution of advertisement and content , by shifting them fast from TV, Print , cable and hoardings and to Mobiles and the internet.

This process is called VALUE MIGRATION . It is a process in which value destruction of the earlier setup or model happens and the value migrates to the NEW entrant , the DISRUPTOR who comes to the scene with new technogy for giving better products and services far superior to earlier ones and create value for its users.

Here value is been created by BCG and all the value of the previous setup / model is migrating from various sources to our LITTLE BOY and companies like BCG all over the world . BCG is a major player in the world over with offices in 22 countries and the count is ever increasing. It is FEEDING on many sources all round the world and growing to become a Huge Huge GIANT very quickly. And our little boy is a world beater ,which at the moment has more than twice the market share of that of Tradedesk its american counterpart who has 10.5 billion dollars of mcap and pe of 115.

The top 5 internet companies of US are 10 percent of the US stocks market.

Our little boy is eying for top spot in the Digital Adtech space all round the world. The Digital Adtech platform of BCG is world class and is attracting clients from all round the world and has one of the highest margin of 30 % .The investment has been done and now hardly requires much capital to grow exponentially and the benefits of this fact will be reaped for many decades to come. The team of digi adtech is a very strong one and multinational in its characteristic with people from Usa , israel, europe and india being the prominent nationalities. So little or no capital is required by the company to grow in the digital adtech business.

The other space is Artificial Intelligence and Machine Learning and work is in progress . A plathora of products and services are under various stages of development and it takes only one and only one service and product to click the market to become the next facebook, apple or amazon. These companies are thriving on essentially one major product or service to become what they are.

Our BCG have 3 highways to succeed and is using all three of them very efficiently to become a great company.

The HUMAN MATRIX is also very favourable for all these three sectors.The head count required is not a large one, but a very talented one. And BCG has this human resource in abundance. Wipro at one point of time had 3000 employees and 3 lacs crores of Mcap. Tradedesk of US at the moment has 1200 employees and the Mcap 8s 75400 crores. The employee costs are low and business per employee and profit per employee both are very high.

Bcg is a number one in all the three sectors in India. Affle is a minnow compared to BCG and is 1/11 th size of BCG. BCG is much.much superior to Affle and it is a shame to even compare the two. Affle does not spend a single rupee in R&D while BCG has spend 586 crores on R&D in the past 2 years alone. The future growth engines are in place.

This year onwards BCG has embarked upon to capture large chunk of market share in market like India, China and Middle East where it did not actively participated earlier. Profits are for the past 6-7 years have been in 3 figures of crores. It is only a matter of time it is going to earn profits in thousands of crores and give away dividend in hundreds of crores.

The pe is very high for the sector because of the promise of very high growth , for very long time and low to literally nil working capital requirements for the sector in digital adtech and ML sectors.

Understand this big picture and decide for yourself specially for the new members and mutual funds which might have come here to find out about BCG.

[Sobha]

Thank you Shoumikji for your elaborate note..

[Author]

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