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[sateanna]

SKR believes that OAK will not offload shares, its only a belief and not a statement that OAK has not sold. So who’s playing around with the scrip. We have seen this too often over the last 5 years or so.

[dgm]

Saul Sir
Regards for the detailed information contents on various aspects of the company and it’s business including unfortunate circumstances company went through and which now seem to be under control/over except the market price.
Could you please explain Lycos role in company’s business prospects.
Thanks.

[odysee]

Thank you for your post, Saul. Appreciate your response to this niggle of concern being experienced by me, which had more to do with the actions of Oak ( at odds with what was indicated in January of an orderly and managed exit) rather than the price action.I have re-read the post submitted by Ian Biden, and the observations and commentary appear logical and well reasoned. Best wishes.

[pranil]

@ Saul, just seek your view on time frame of investment, what is right time? Some investors are in brightcom for 10 years and most of longterm investor are more than 5-6 years. And on avg investors lost 70 to 80% of their capital. I am seeking this because I read your below sentence, I understand globally 3-5 years is good time frame to expect returns.

“ Our markets just want quick results. They don’t want the company to increase the profits many times, they just want small amounts in dividends.”

[pranil]

Dear Saul, I just feel that it’s not fair to categorise long term investors who waited for 10 years as impatient and seeking multifold returns too fast. Yes every one understand risk of investing but if they couldn’t get any return even after waiting 10 years it is justified if they say there investment gone wrong and they sell it off. But can we call them impatient?? Everyone has different holding capacity and we can’t generalise and expect them to hold on for decades without expecting any returns.

We can’t compare Apple and BCG in any ways it’s real apple to orange comparison. If you consider all stock splits of Apple, on 1980 it was listed at 0.46 usd and by 1990 it was at 1.5 usd. It also paid dividends from 1986 to 1995. They stoped it after 1995 due to market conditions and started again in 2012. So Apple in 10 year 0.46 to 1.5 and BCG 55 (not sure but doesn’t matter) to 10. We just can’t say the plight of investors is same and hence we can’t compare their actions.

https://www.macrotrends.net/stocks/charts/AAPL/apple/stock-price-history

We need to accept, BCG has taken much more than normal time taken to create shareholders wealth and we need to share our expectations and ask right questions to management so that they understand our situation and protect our interest.

I do agree the price is not in complete control of management. But at the same time if some one influence price to great extend is Management only… can we say that management can’t influence price? ( I am not talking for 1-2 years but 5 to 10 years). Trust me over such time frame management through their performance and actions are responsible for share prices; no one can shrug off this responsibility.

[pranil]

Dear Saul and other investors, I want to bring your attention to one very important aspect of BCG performances today. My objective is not to create negativity but to create awareness and I request you all to ask this question to Mr Reddy.

Request you to go through BCG financial performance in USD term which is published by management this month. Comparison is usd term of financials is more logical as their major business in USD. Now see the EBITDA it was usd 97 MN in 2015 and now in 2020 it is usd 108 MN. So it’s almost flat in 5 years… now we feel that we didn’t grow because we didn’t have cash to invest, right. Now check their cash flows over this 5 years they invested minimum 1000 cr or usd 150 MN in business. So imagine BCG earned usd 10 MN additional Ebidta by investing 150 MN usd!! Are we as investors happy with these returns?? How long company will keep investing shareholders money in business without generating avg financial returns?? Now can we be 100% sure that if we get 100 US MN credit line, we will generate more that usd 10 MN ebitda? Can we say BCG is performing well in line with tradedesk and Affle?? Let’s ask critical questions to management.

[pranil]

My Friends; I want to reiterate that I am investor and well wishes of BCG and it’s investors. And I also believe despite of all the critics, BCG is grossly undervalued. Let’s keep patience. Be ready to criticise and praise management as per the merits/performance. We all can be great force if united. Thanks

[Logan]

Hi Pranil, I have been polite with you all this time but you are trying to provoke me, don’t plant wrong information about me here, being a long term investor myself, I never called long term investors as impatient.

I’ve called people who buy stocks looking at price alone as impatient. It’s because of people like you I didn’t write anything all these years.

I’ve not compared Apple with BCG. I don’t think you got my point. I mentioned that even the big companies in the world have struggled. And BCG also paid dividend in 2012 and 2016, did that change market sentiment?
10 years back BHEL was trading above Rs.300 and now the price is Rs.30. I’m not comparing BCG with BHEL business, I’m comparing only the price and again my point is that all companies have troubles with their stock prices.

It’s not my problem if you don’t understand the problems faced by the company, I can’t spoon feed everything to you.
It’s not the management’s fault if people like you don’t understand the nature of the business.

If you are talking about the performance of the company, yes, they have performed well all these years. But it’s people like you who don’t appreciate that. You only see the price and think that is more important than the survival of the company.

If you don’t understand the difference between profit and cash flow then it’s not my problem.

I too feel frustrated looking at the price but unlike you, I understood the problems the company is facing.

If you are frustrated with the management go ask them for answers. Why are you asking for my opinions if you don’t understand them properly?

If you have suggestions we all long term investors are ready to take them and we all can discuss about them with the management. But if you ask my opinion on something and later accuse me of something which I didn’t do then I’ll stop replying to your questions.

[pranil]

Dear Saul,
Let’s not judge each other what we understand about business and performances, it’s debate we can’t conclude and not in interest of anyone. You said I judge company performance with share price. Let me clarify, I don’t. There are many parameters of performance and few important parameters are growth and cash generation. I have shared real company declared numbers and it will be better if you share details what performance Parameters you are referring to as you are saying company performing well over last 5 years.

[admin]

Hi Pranil, You had told you will be back after researching more on the business (Criteo topic) but have not seen anything on that. Instead you have again started to post related to price, dividends and returns when Saul has repeated many times not to ask questions on it. Please respect to what the individual has said.

[Logan]

Hi Pranil, I was talking only about post #7178 and not about posts #7179 and #7180. I’m using my phone and it took long for me to type and I didn’t see your later posts.

Let us forget all the previous posts and concentrate on important things.

I will start a new thread where everyone can give their suggestions.

I have discussed with the admin and I have prepared a draft for that and there are few changes that I need to make and I will upload it by tomorrow EOD.

You can also give your suggestions there and together we all can discuss and appoint a person to ask questions to the management in the conference call. Instead of many people asking questions it’ll be better if a single person asks the questions on everyone’s behalf.

[admin]

Hi Saul,

Appreciate the time and effort you put into your thoughts behind all the articles.

One suggestion is we mail the final questions to IR at least 2-3 days prior to concall so they come prepared, else we will hear answers like data is not at hand/ will come to it later etc which never materializes. If they are prepared they would be starting through those questions first and one of us can ask if anything is missed or more clarity is required.

Pranil had asked questions in the previous call and expect to be ready to help this time as well.

[pranil]

Sure I will ask questions.

I have been chasing Company for below information. Despite at least 6-7 reminders I have not got any response. This is one question I am planning to ask.

“Dear Rajesh,

your today’s presentation for 3 Q of 2020; Net incomce mentioned is USD Mn 61.77. earlier presentaion says full FY19 year net income was USD Mn 62.40. this means that Net incomce of 3 quarters of FY 20 is almost same as full Net income of FY 19.

however reported result says net profit is of first 3 quarters in 2019 and 2020 is almost same ( Rs 336 Cr & Rs 333 Cr)

so why reported net profits is not showing the growth shown in today’s presentation?

[dgm]

Let us hope Oak selling is done off market in one go. And the market price of BCG becomes stable/rising. That’s what we all want.
I am hopeful of the same happening.
All other issues are now almost over, biggest indication of which is their continuous efforts to reestablish faith in corporate governance through their disclosures/ responses/ updates since some time.
Let us keep Hope.
Let us keep Faith.

[BCG Hopes]

It’s sad that again even in this forum we are going back discussing the price movements, as a long term investor I couldn’t care less about daily price movements and none of long term investor would expect a permanent hike in share price without the diclosures on lined up news like Restructuring,DAUM Resolution, Line Of Credit those are the things that would eventually help BCG share price along with the new approach by management of timely communication. I wouldn’t want a dividend either, I don’t think given BCG’s need of working capital paying dividend is a smart move, I don’t believe dividends or lack of it in anyway reflect on genuinety of a company. Keep up the good faith in the business and everything else will follow.

[pranil]

Thanks Ian for your views, I respect it.

The top and bottom line are absolutely flat from 2016 to 2020. Yes May be we can say many companies disappeared while we manage to servived. it will be interesting to know how long this consolidation phase to continue. And what different some company doing who able to grow in these tough times.

[jmathew]

Below something to note.
BCG BV in, 2016 – rs 43, 2017 – rs 51, 2018 – rs 59 and rs 2019 – rs 63.

[pranil]

Dear Mathew,

It’s not logical to analyse brightcom business in INR, companies assets, working capital and cash is in USD. It is same that we don’t compare Apple results in INR. From 2015 usd to inr was 62 rs and not 74.
I suggest you to please check companies presentation, it’s official numbers

http://brightcomgroup.com/wp-content/uploads/2020/05/BCGFInancials.pdf

[pranil]

You can also add 2020 numbers; we know top line and bottom line is flat for first 9 month in INR terms… so I guess in USD terms it will be lower than 2019 numbers.

[Author]

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