Tagged: General Discussion
July 10, 2020 at 11:55 am #7617
@pranil – The final list of questions I had collated was shared here before emailing to the company. Regarding your query of flat growth for last few years was very well explained by Saul here many times and LOC is the way we know that. Has not the revenues and bottom line not doubled since 2014 despite revenues from Lycos not being considered now? If you still think it is very important you can ask the management directly and share you response here.
Please look to add information which will be value addition to the forum as @aindia is doing. There is no point in having unending debates and discussion.
Investors are looking forward to having the current issues getting solved. We have many new investors coming to the forum. I do not want that the forum is used to discuss the only critical thing which will be personally beneficial for you out of all the things you want to know for your investment.0July 10, 2020 at 12:02 pm #7618pranilRegistered Boarder
I want to mention there is no growth from 2015/16 to 2020 (usd terms) excluding lycos. This is also clear from management presentation. Let me know if I am wrong.
Saul touch upon my query but that is what i am discussing as I am not convinced with it.
If the group feels my points don’t add value, I will not post as I don’t have any other motive to write.4+July 10, 2020 at 12:15 pm #7619
@pranil – Understand that you are not convinced even after Saul has tried to put in many ways. Your concern is whether LOC amount investment would give superior returns, and about other issues Axis, Daum, LOC etc you said you are sure that it will be resolved anyway. I think your particular concern can be discussed when the LOC is sanctioned. Otherwise you may directly raise this with management or pay a visit to their office.
Request you to please heed to what I say. My intention is to make this forum a knowledge hub which will be benefiting all prospective investors.
As I said, right now investors are looking for other issues to be solved. We have new investors visiting this forum and I do not want the discussion getting deflected.0July 10, 2020 at 12:19 pm #7620pranilRegistered Boarder
I don’t want to contribute if it is not helpful.
I take leave from this forum.
Wish all the best for all the investors.4+July 10, 2020 at 2:04 pm #7623profile inactive, exited bcgRegistered Boarder
I think we should get back to MMB and continue discussions there as well. After all, we are quite a strong community now, and how many messages can the operators possibly mark as offensive? They are human too.3+July 10, 2020 at 2:26 pm #7621
Thank U Admn for taking me in.0July 10, 2020 at 2:26 pm #7622
Iam the same person who had posted messages some time back as guest messages under the same username, but when registering was made mandatory, I have registered now only.0July 10, 2020 at 2:35 pm #7626July 10, 2020 at 3:03 pm #7627odyseeRegistered Boarder
@pranil, your response at #7620. Objectively looking at the exchange of views between Saul and you ,and comments by Admin, it would be a shame for you to withdraw from this forum. It has been extremely rewarding for us all when Saul came onto this forum ( thanks to Admin) and gave such an excellent presentation on varying matters pertaining to BCG, that we are all now so much better informed.
Many others have, thereafter , commented and responded to the opinions and views expressed on this forum, and there are bound to be some minor differences on the reading and interpretation of some of the available financial and operational data. But that makes for a keener application of mind by all on this forum.
Admin, kindly excuse my transgression in your space so to speak , with my comments above.3+July 10, 2020 at 3:39 pm #7628
Thanks @odysee for really speaking my mind.
I do intervene whenever there is imbalance in the forum. Some may see it like I am not allowing criticism, accuse that that this forum is run by management, admin is ruling, etc. It is not like that. There is a way how you present your thoughts, respect and learn from each other. I am also an investor and optimistic about this company. I am equally impacted by the market sentiments but have an additional responsibility to see through the daily activities here is happening in a balanced manner.July 10, 2020 at 5:58 pm #7630
Till some time back, there were no clarity regarding daum settlement,composition of foriegn subsidiaries,global auditing of all those foriegn subs, consolidation of those 12 subs in to one US subsdiary, loan clearance and eventual attaining status of doubt free company, release of pledged shares etc. and the business strategies and future ahead for the company Tec.
Now all we know from the managemrnt updates,that daum settlement agreement is in place and only signing is pending due to pendemic and difficulty in travelling. Manage many has given indication clearly that daum settlement already is behind us and that is the reason behind company management came with unseen number of presentations and updates clearing all the doubts I have mentioned above.
Now,to my mind, being an investor for the last more than seven years and posted in this thread as well as other threads of this blog earlier regarding the complex nature of international court cases entangled by the company during all these years (which is already begin us as clearly informed by company) and other non transpanancy exhibited by company (due to the same case and international court attachment order including all the subsidiaries,which is behind now),it is very clear now that there is nothing seriously against the company. Ofcaurse, company might have burned a substantial amount of cash in their unsuccessful ventures. But then in many proven companies of present days , most of them attained success after many failure. Therefore succuss in solving all the problems of more than a decade takes care of every thing.There fore all the best to all long term investors.July 10, 2020 at 6:31 pm #7633Rathi_bRegistered Boarder
Axis case has been accepted to be heard as urgent appeal and had been heard on 9th of July and the details of which have still not been placed at the website of NCLT. If anybody has an update regarding the hearing on 9th of July please let us know.
Thank you.1+July 10, 2020 at 7:02 pm #7634RaveendraRegistered Boarder
How do we get to know about conference call numbers. I could not get any update anywhere? And missed the call last time…just have to hear YouTube audio someone posted.0July 10, 2020 at 7:13 pm #7635
@pranil, even after explaining that they didn’t invest $500 million all at once, you are repeating the same question again and again. If you have any good ideas then share it with us, simply repeating the same question won’t make any difference.
When you talked about startups, I don’t think you understood the part where I mentioned that the reason for their super growth was because of big investments that others are making in them i.e. startups are getting all the amount at once.
Coming to Rs.100 crs investment every year, that you have mentioned, you have to understand that they are not receiving that 100 crs all at once (I’ve explained this also)Even if they receive Rs.10 crs every month, most of that amount will be used to pay publishers.
Also understand how they pay publishers, it’s not an onetime investment where you buy something and later you go to them after many months, they have to pay them every month and it’s more like paying house rents, you have to keep increasing it in order to get preference over others. In a good locality, every year the owners increase the rent by at least 10-20%.
So in 2016 if the rent was 10k then now it would be over 15k if the increase in rent was 10%. So, if BCG wants to do business with reputed publishers then they have to pay them extra. Also they have to be very competitive when dealing with giants like Google, Facebook and AOL.3+July 10, 2020 at 7:15 pm #7636
Also, the subsidiaries are independent and they need cash for their own operations. I don’t know whether you understand it or not but there are cross border transaction issues which they have to consider. Looking at all these, consolidation of subsidiaries and setting it up in the US makes a lot of sense. All the new profits are going to buy new media space and for other operations and to really take advantage of that they need more money like the money from LOC.
Regarding sales, in 2016 it was Rs.2255 crs (including Lycos revenue) and in 2020 it is almost Rs.2700 crs (excluding Lycos). If Lycos contributed 5-10% of the revenue in 2016 then let’s take out Rs.155 crores out of Rs.2255 crs so it becomes Rs.2100 crs. Now, isn’t Rs.600 crores not an increase in sales for you? Though it’s not a big increase, we should be happy that it increased by that much at least.
You talk about thumb rule of investment right, but tell me how you can adopt that in business? if running business was so simple then why doesn’t everyone use that rule to get great returns? Have you ever seen a person who’s always good at everything he does? Business is not an experiment where you can control the outcomes. Nobody can depend on thumb rules when running a business.
There are many costs and expenses we have to consider like inflation, technology changes, product development, paying off debt, paying lawyers and all other important things.8+July 10, 2020 at 7:17 pm #7637
Even Mr Reddy understands that they are not getting good returns on few investments and that’s why they did the impairment of assets. I know it’s taken many years but you have to understand that there were other issues too, there was DAUM, debt payment and they burnt cash in Lycos LIFE. I consider time as money and in that period because of DAUM, BCG wasted a lot of time.
We have to give them time to improve their operations, nobody is perfect and you should understand that. Mr Reddy is also a human like us, he also needs time, he built this company from scratch without having business experience and till now he has not done major mistakes. There were issues like debt write off and DAUM but that didn’t make much impact on the business, let them clear all these mess first.
My question is, if you know better than other retail investors then why do you want to ask us questions and why do you keep on repeating the same thing again and again?
Instead of asking us, you can write a thread on how the company can improve their operations, top line, bottom line, cash flow etc right? Not only me but everyone here will appreciate you if you do that.6+July 10, 2020 at 7:19 pm #7638
You have the right to ask questions to the management and I have never said you don’t. I never expect anyone to praise the management, if you observe properly, even I have criticized them in my posts. In the 23 questions that we sent before the conference call, 14 were my questions and all were critical and important.
If you stick your mind only to that $500 million then no one can help you. I know the stock price hasn’t improved in many years but being emotional about it won’t make any difference. Even I’m frustrated with the stock price not going up, but I understand that it’s not the company’s fault, some of their actions have caused it but the main reason why stock price fell was because of market sentiment i.e. people didn’t understand the business all these years (still some don’t).
It’s good to know that you have kept faith in the company/management/CEO. Likewise you also have to understand their problems. No one can fix all problems at one go, it takes time.July 10, 2020 at 8:46 pm #7641
@ Saul, and @ pranil, both of u seems not taken the revenue cycle in both of ur projection. I am not joining any issues with either of U.
For example,if Company infuse say Rs X,out of the net profit of a year in to the working capital ,take the cycle of buying and selling which is one month and 100 to 120 days for realisation.so every rupee spent on buying medi will come back to the company with profit of Y latest within 120 days. So the money infused every year can be rotated by 3 times considering the longest cycle of realisation by the company of 120 days. So the revenue increase should be more than three times including the respective incremental profit due to the infusion in a particular year. And for successive years if u add up respective infusion out of the respective years profit , U may have to multiply by a factor of 3 or more, to the cumulative infusion of those years, for working out the expected revenue increse finally as on today (2020).
The above is taken with a maximum capital rotation cycle of 120 days (maximum). The trade recievable days is almost static with minor variation.Therefore trade recievable aspect will not come in to the way of above calculation.
Ur opinion please @Saul and@ pranil.July 10, 2020 at 9:09 pm #7642sandyc316Registered Boarder
@Rathi_b Since you’re following the Axis bank case, as per my understanding of the latest judgement, I feel this is exactly how Mr Suresh had explained in the conf call – Axis Bank, in-spite of there being an ongoing case for debt resolution, has unnecessarily filed this case in NCLT. To me, this is also probably one of the examples of why we should trust what the CEO says.
Hope for a speedy resolution for this. Can’t wait for the day when all the overhangs caused by these small issues is gone for good and we’re looking only at the bright road ahead!July 10, 2020 at 9:57 pm #7643Rathi_bRegistered Boarder
@sandy316 the document regarding the hearing on 9th will be out this weekend and we will know more about this axis case. It looks to favour brightcom so I’m happy, but not jumping the gun the documents relating to it should be out by tomorrow or day after. I’ll update accordingly and hope things work out for the company and us.
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