[admin]

Hi Anand. Please do not create new topics to ask queries. Use the general discussion thread instead.

Thanks for sharing the material.

This query was also raised in the last concall to which Mr.Suresh Reddy said will be clarified later point of time. Also there was
was discussion related to this in our forum sometime back that it belongs to Brightcom Group.

[admin]

Here is a feedback of one long term investor, please do not take it as a buy or sell decision.

“Most of the investors now understood the company and its business due to the awareness given by brightcom investors forum. Earlier there were negative news n negativity in market as there was no transparency n no clarification but now every answer is available in black n white. Now all investors have regained confidence in this stock. Now stock has become a Gem Stock wherein the supply of shares will decrease in coming days. Even in red market like today, investors will not sell because once you sell you will not be able to enter so easily.
In today’s scenario best thing is to Lock your shares for few months as this is going to rise manyfold even in bear market.
Stay safe, stay healthy n stay invested
Bhupinder Singh”

I sincerely thank Saul Goodman for his contribution. All your series of posts and the research work you have presented has helped lot of investors in systematically understanding each aspect of Brightcom.

[Diana Horton]

post # 7018

Dear Mr Goodman

May I take the Oppourtunity to thank you on behalf of the BCG community for all the Detailed Informative and Research backed Analytical posts that you have posted over a short period of time.

Its a Pleasure to have you in this Forum

Hope to meet you in person, in this years AGM, if Possible

Warm Regards…..

……………..DH

[BrightVenus]

A ET NOW video link on post covid trends:

[jmathew]

Dears, Please find the link for 2019 annual report.
https://www.bseindia.com/bseplus/AnnualReport/532368/5323680319.pdf
BCG is not included in the revenue of Lycose inc. (page no.5)
page no.34 more workforce force for AL And ML
shareholding very interesting. ( page no.39)

All, please go through this whenever you get time.

Attachments:

1. 5323680319-1.pdf

[sandyc316]

@jmathew The distribution of shareholding is indeed very interesting! Let me see if I have got it correct – Investors who own more than 10k shares i.e. nominal value > 20k (for a Face value of Rs 2) own almost 90% of all shares. Assuming all of these are serious investors (a safe assumption) and would be willing to hold till a fair value is realized, I must say it augurs really well for the stock price in the future.

[pranil]

Hi Saulmate.. few points I want to highlight.

Bcg’ growth in last 5-6 year is flattish in USD terms.( this is despite they reinvested almost 1000 cr in business from their profits) While all the companies you have mentioned are growing much higher some of them above 50% cagr. I understand market values future and that’s why high growth rates are important.

TTD or Affle though have/had lower sales, they continued growth and never gave any cashflow issues for limitations to growth. We try to get convince that BCG’s problem of cashflow will be resolved after LOC… firstly who was stopping them to get LOC 6 years back? Does it not show as management didn’t evaluated this option and shareholders suffer for this?

If people in india can understand Affle business model and they don’t understand BCG’s who’s fault is this?? Shareholders? Investors? Or managements?

One more important aspect considered for valuation is promoter track record… unfortunately none of investors made profits in BCG, infact almost everyone lost capital. So there is impression that they are insensitive to shareholders.

You can see one more company in this field apart from TTD and Affle….Criteo… see the gap in their Valuation; this is only due to growth rates. Plz note criteo had no valuation issues few years back but despite that their growth is flat and you see they valued at 5 PE and TTD at 145. So we miss the business model/technology factor, some company has superior technology and they grow faster than others… cash to burn is not only one constraint.

Off course BCG deserves better valuation but if valuation be at 5 PE, 50 PE or 150PE will depend on the growth rates and how sensitive is management towards investors. Keeping my fingers crossed.

[pranil]

Dear Admin, I hope you post my post… there is view that you allow only positive view about company and management. We should be fair, praise them for good dids and criticise for wrong. After all our intention is to maximise value for us. Why a longterm investor is critical of management? Is it because he want people to sell shares?? Only to create positive pressure on management to hear investors

[pranil]

I m wondering why my posts not showing still. Seems this forum is to pump up the prices only. Every one says I am not recommending to buy but then they don’t allow any criticism or different view. May be because it risks exposing negative side of company

[pranil]

Criteo and Trade desk both entered in market in 2016; criteo ipo was priced at usd 31 while that of TDS usd 18. Today criteo is quoting at 12 usd and TTD at 350 usd. Main reason is that criteo did not show growth while TTD is growing at handsome rate quarter after quarter. Growth is must for good valuation

[VALUEBUYER001]

Dear Saul Goodman thanks for the pains undertaken by you for writing such a long Posts giving so many information nto all thanks again sir

[admin]

Thanks Valuebuyer!

Thanks Saul for your time in replying to baseless allegations. Even otherwise your series of articles have already elaborately discussed each topics and there is nothing much left to be queried. Despite that there are certain elements who find faults by twisting the facts and depict the company in bad light.

Some baseless allegations made are,

1. Why the recent SHP shows fall in promoter%, have they sold shares. They do not mention that it is as a result of preferential allotment process and in fact applicable to all of the categories in SHP.

2. Company changing names often??

3. Shares are pledge, have debts in spite of making profits year on year

4. High receivables. Without an iota of knowledge about digital marketing industry.

4. Raise questions on auditors. Without knowing that BDO is already in the works.

and many more such baseless allegations to intentionally malign the Brightcom Group and panic investors.

I will be creating a separate thread only for Critical queries and their responses. So that boarders here can present it to those who comes with baseless allegations.

Please see attached screenshots of responses to allegations on Twitter.

Attachments:

1. 

   Acquisitions-and-Pledge.jpg
   

2. 

   Auditors-and-Intagibles.jpg
   

3. 

   Balance-sheet-Dividends-Goodwill-Security-Deposit.jpg
   

4. 

   Cashflow.jpg
   

[admin]

A few more screenshots..

Attachments:

1. 

   Recievables-and-Payables.jpg
   

2. 

   Recievable-Days-Other-Party-Transactions.jpg
   

3. 

   SHP-Debt-Taxes.jpg
   

[pranil]

Thanks Saul for your detailed reply.

First of all I am sorry I got upset as my posts were not shown, I had tried to post in past as well but my post never published… so I thought this time also it will not be posted.

Further I want to clarify, I am long term investor and invested since 2014-15. I have asked questions in most of the concalls May be you can Verify from the call transcript. So I trust business and management and I want prices to go up. But I am critical of some aspects may be I am not able to convey properly as my question was all over. I will take up couple of very specific issues and back it up with supporting data so that my point is better understood. Will post soon.
Regards
Pranil

[Optimus Prime 06]

today oak sold 35 lakhs shares in nse

Attachments:

1. 

   Screenshot_2020-06-16-20-40-46-17.png
   

[admin]

Thanks Srinivasa for the update.

[Deepak]

Why oak india selling their share in open market. Mr reddy ensure the investor that oak share will not come in market in last concall. We should ask for clarification from company.

[pranil]

I remember, Mr Reddy always ensured that FPIs will not sell and these shared will not come in open market. I remember he said it at time around filling bankruptcy… but it happed other way round, we seen all FPI one after other dumped stocks to retailers…seems Oak will follow the same.

[Optimus Prime 06]

4 crore 20 lakh rupees stock value shares sold by oak(35 lakhs).. that too in nse for the price of 11.95..even it is trading at 12.40 in bse…the oak decided to sell for low price..they sold for a loss of 17 lakhs.i think its a pre planned trade..may be some big player..i think…what is the wrong in selling in open market if they found price is ok for them.please explain..
thank u

[T9C]

My understanding is that he will arrange buyers for those shares in market, so it will not affect share price. If you see today’s trades, they are just change of hands. If Oak wants to sell in open market they could have sold it in bse where price is high, but they sold in nse since their buyers are in nse and they don’t want to sell to retailers or someone else.they sold it to pre decided buyers only in nse.

[Author]

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