[pranil]

Yes Saul. We need the updates to understand more.

Whatever is the case, 800 cr is not small amount and there was no mention of any stress anywhere. In fact when people used to raise concern about numbers be it assets, receivable or investments SKR always assured them of nothing wrong. So it is not easy to digest this write off, as a long term investor I really feeling bad about the transparency.

I hope the updates restore faith.

[Logan]

Like the last conference call, this time too they should conduct it for 2 hours, we have so many questions and 45 minutes won’t be sufficient.

[pranil]

Thanks will be great Saul.

Even otherwise we should align on key questions to be asked let’s ensure no repetition to use time most effectively.
I am going to ask question on write off, growth and return on investment.

Suggest you and other members to also decide questions to ask.

[admin]

“Certain legacy items on the balance sheet, across all subsidiaries have been
impaired, in view of projecting a healthier overall balance sheet going forward.
We will send out a detailed note to clarify further.”

Hope the update comes before the conference call. Those who agree 45 mins will be insufficient to discuss everything, please send mail to the company requesting to extend the conference duration.

[VALUEBUYER001]

We need 90 minutes or 2 hours concall this time also

[dgm]

I very hesitantly submit some observations as below and no arguments please –
1. Menasa Research Report gives adjusted book value of around Rs. 30, and mentioned some discount on account of subsidiaries and due to covid-19 some discount on account receivables.
2. Recommendation was Strong Buy for a target of Rs. 12, which was to be revised after results. Let us wait for it.
3. More than 2% shares have been bought on 3 trading days and even on Friday 0.5% shares were bought.
4. BDO involvement is very strong positive factor even if some necessary cleaning has resulted. At least value becomes more clear.
5. Future seems to be better, at least better than the times when no equity analyst was covering the company and there was not a top 5th auditor involved.
Companies go through such things. Mergers and Acquisitions are very complex things and many times companies face issues.
If the business (is stable if not growing) and the company survives, you don’t loose in the long run.
Let us hope for the best.
I would also like to add that to my view neither company is interested in taking back Lycos nor it is worth. Again this is my understanding.
I may be wrong in any of my observation. Take it as you may correlate. And make your own understanding.
I also do not feel long conference call may serve any purpose, as companies do not disclose very clearly to retail shareholders, which they disclose to equity analysts and auditors.
And why to bother CEO so much when he is having lot else to do to run the business. He is running the business not us. Let us not suggest and argue too much.

[pranil]

Dear Dgm, I feel we should be vigilant and learned investors and together we should put positive pressure on management.
Nothing wrong if we ask some genuine questions which are important for us to understand. We can’t work on blind faith, it’s not the right way.

[sandyc316]

We should also check with the management how is this pandemic affecting the company operations.

1. Do we see any de-growth in the next couple of quarters?
2. Have any employees been fired or salaries reduced?
3. Also, if international travel is banned, when should we logically see Daum getting settled? End of this year or March next year?
4. Has the Covid-19 pandemic also affected the BDO audit? Do we see any change in timelines there? Will that be complete by end of this year or March next year?
5. One good point is that the standalone has been contributing positively for the last couple of quarters. Would the trend continue for the next quarters or will that be hampered because of this pandemic.

[admin]

Business picked up in May, June: Brightcom CEO

“The fourth quarter was a slower quarter. We had some challenges initially as some markets were impacted by COVID-19,” Suresh Reddy, Chairman and Managing Director of Brightcom, has said.

“There, however, is a momentum in May and June as there is an increase in consumption of content during the pandemic,” he said.

https://www.thehindubusinessline.com/companies/brightcom-net-profit-flat-at-107-crore-q4/article31926744.ece

[pranil]

Dear Saul,

It’s not good idea to rest on hope of traveling to Korea to resolve daum. World over all works are happening online digitally/virtually. Even traditional businesses has adapted this new way of working. Why can’t a leading DM firm resolve this by virtual meeting?

I don’t understand this reason of non travel for daum closure. Think what work is not happening due to travel restrictions??

[pranil]

Just one example…. million dollars deals are happening every week in Jio; in much complex platform. Investors are from US, Europe and Middle East. Source companies in India. No travel. Everything is done online.

[Logan]

Hi pranil, in the last call Mr Reddy said that the amount is finalized and they are negotiating on some legal clauses and 95% of the job is done. I think he’s making sure that DAUM won’t get back to them again in the future. I don’t know why he has to travel to South Korea but let us not worry too much on Lycos.

And for the company, I don’t think getting back Lycos is very important right now, there are many other important things like LOC, consolidation of subsidiaries etc.

If you see they are signing reputed publishers like Philadelphia Magazine, boston.com, The Seattle Times, Boston Globe, The Salt Lake Tribune etc.

Since this year there is Presidential election in the US, there will be an increase in consumption of news content and signing the above reputed publishers may help in generating more revenue. So maybe they are focusing more on business.

[hw_tw]

I agree with Pranil on the Daum settlement. With digital signatures we can sign any contract documents. Company needs to give clarity on why they are not able to close it and why it really requires a travel.

[hw_tw]

The new publishers they have signed up all seems to be political news websites which is pretty positive in the election year.

Their alexa ranking and monthly site visitors count from similarweb are given below

Boston.com – 3,744 – 8.27M
seattletimes.com – 5,127 – 14.49M
Bostonglobe.com – 7,250 – 10.9M
sltrib.com – 15,198 – 5.41M
Phillymag.com – 43,220 – 1.33M

The total site visitors are coming to around 40M. Assuming each page having 2 ads they would have added 80M impressions to their kitty

[nitin_asce]

My opinion is bit different. Since dividend is announced my guess is daum is done and dusted. Only announcement is pending.
When SKR feared of giving information in concall due to daum discussions, then definitely such actions give confidence that it is settled. I think once oak exited, everything will come up in public domain.

[Logan]

My understanding is that the company still doesn’t know how to communicate with the investors properly.

Take axis bank loans for example, in the report they have mentioned that the loan is NPA, no problem with that, but they could’ve explained that though the loan is NPA, the original amount was more than 30-40 crs and they have paid down the loan till now and the remaining amount is only 11 crs.

Only old shareholders will know this information and people tracking the stock will get confused or they may think that the company is bad because of the NPA. One simple explanation would help solve so many problems and confusions.

[VALUEBUYER001]

Thanks good man sir for your help and support 👍

[sateanna]

Agree Saul. The company doesnt communicate properly with facts & figures. For example we have been asking the status of the pledged shares, for what the shares are pledged. Is it against the Bank Loans or any other loan ?? Even after loans repaid we find that pledged shares not revoked. Also the company does not realize that time is money. They have ended up wasting the retail investors time all this while. Never have I spent so much time on one company in my 20 years of stock market experience.

[Rajesh Patel]

I think company doesnot want share all information, see the write off amount information, if they want easyli delayed for next quarter. but seems they want break on price, todays oak disclosure pointing out this…

[Logan]

@sateanna, you are absolutely right, they can’t expect us to figure out all the information on our own.

I think any big auditor wouldn’t have reported like how PCN has reported. Appointing a good auditor is very important at this time when people have so many confusions and when the sentiment is negative.

Knowingly or unknowingly, the company itself is making many problems even worse, they are creating more problems while trying to clear old ones.

Being a new age Technology company, they are behaving like we are in the 80s when it comes to providing proper details. We get the information only if we attend the conference calls.

No doubt they clear most of our confusions in the conference calls but they should remember that only a few investors attend the calls. And if they want value recognition they should provide proper details.

Verbal communication won’t matter at all to some people.

They have to give written information on few important items. In the annual report they should mention all the details properly.

They should understand that they should provide information to the whole market and not just to existing shareholders.

[Author]

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