Tagged: General Discussion
July 10, 2020 at 10:20 pm #7644
As per NCLT website,the cause list for Hyderabad bench 1 for 08-07-2020 shows two IA came for heaing (axis bank v bcg) in CP (IB) No.35/7/HDB/2020. THE IA are Nos 460/2020 and No. 181/2020. It appeared as the last item for 08-07-2020 shown as for orders.
Again in the cause list for 09-07-2020,again it showed IA No. 181/2020 in CP (IB) No.35/7/HDB/2020 for orders. It appeared as the first item inthe list for 09-07-2020 mentioning as for orders.
Therefore nclt might have pronounced its orders on 09-07-2020 being the first item shown as for orders. But the same could not be verified from the website.If pronounced orders on 09 -07-2020 , what is the final amount court ordered etc not known.
If any further information is known to any one can please post here.4+July 11, 2020 at 1:38 am #7645
@LogicalSpeak, great observation (#7641). Whatever I have explained may not be accurate. My explanations are in layman terms and that’s because I’m also a layman. When it comes to accounting/finance, I have learned about things that are necessary to value a stock but I haven’t gone too deep when it comes to learning about day to day operations of the company.
In my opinion, not everything that BCG invests will be profitable i.e. they may buy media space from a reputed publisher which may result in losses, at first they may want to sign with them for the name or they may get profits in the future. Also the costs to buy media space may increase in the next month due to intense competition (they may have to bid at higher prices to get that space). And whatever losses they get that may be offset by other profitable short term investments.
If we check on adauth website, the number of publishers using BCG’s tech is increasing every month so maybe they are buying ad spaces from other publishers to offset some losses. And they’ll also have other expenses right.
Please correct me if I’m wrong. I can talk about general things but it’ll be really hard for me to give proper answers without knowing the day to day operations of the company in detail.
We should ask the company to conduct a conference call to discuss about the operations of the company (if they are okay with it).
If you can explain about BCG’s operations in detail then it’ll be very helpful to everyone in the forum and it’ll help us to ask better questions to the management during the conference calls. Please start a new thread about this, since this thread is for general discussions, there will be many other topics discussed here and will be hard for us to find these posts whenever we need.July 11, 2020 at 1:07 pm #7646
@Saul, thanks for your reply. I have just pointed out an aspect I have observed. I have no in-depth knowledge in the operations particularly in high tech digital ad programmatic business.
But normally, in any conventional businuss, the capital rotation cycle or the justation period is from raw material procurement to processing, producing finishing,packing,marketing and realising the capital invested along with profit or loss. This cycle is ,if say 4 months means company can repeat the cycle 3 times an year. Which means with X rupees , company can attain 3X rupees or slightly more of revenue.
But this is true only if demand for the copany’s produce is constant though out the year, as inthe case of some day to day use consumer goods. But how it is different in high tech digital ad tech space is not known. It will be definitely different given their skewed revenue from Q1 to Q4.
This point viz-a-viz plauwing back portion of each year net profit to the digital ad business and how it is reflected in company’s revenue and profit, or any other substantial hidden investment (due to obvious reasons during past many years) which may bear cumulative fruits in the future years etc. needs to be asked/clarified through questions to the management in the next opportunity or in the next concall.
Dear Admin kindly keep this as first indexed Question for the earliest opurtunity with management.2+July 11, 2020 at 1:42 pm #7647dgmRegistered Boarder
1. Digital Marketing/Advertising Revenue has grown from $244k in 2015-16 to $315k in 2019-20. (29% growth)
2. 100-120 Maths 5 years –
After 4-5 months of investing 100 each month you will start receiving 120 each month
60 months payables = 60*100 = 6000
55 months receivables = 55*120 = 6600
+ 5*120 = 600
= 7200 (in 5.5 years)
7200/6000 = 20%
Company can achieve sizable growth post LOC.
Evaluate at your end.3+July 11, 2020 at 2:11 pm #7648myainvestRegistered Boarder
There is another announcement from company listing the investments made in subsidiaries for this year and the last. Impressive2+July 11, 2020 at 3:52 pm #7649dgmRegistered Boarder
Digital Marketing/ Advertising Revenue has grown from $244k in 2015-16 to $315k in 2019-20. (29% growth) is correct.
Please ignore 100/120 maths as we do not know the actual dynamics. This calculation is faulty in its present form as it is ignoring the increased amount of profits available. And we also don’t know how much business was available in the past. Focus too was scattered on many issues including fierce legal battle during 2018-19. Company may have made many mistakes in the past. But now it seems to on the turnaround point.
In case the company has established itself now in the DM business and the business is readily available, LOC can bring quick growth.
Hope for the best in future.July 11, 2020 at 6:05 pm #7651DeepakRegistered BoarderJuly 13, 2020 at 2:54 pm #7658
Hope BCG gets LOC within this quarter and sort out all issues in this Quarter, with presidential elections in November and Christmas in December. BCG can make the LOC to perfect use for the huge jump in online ad spend next quarter. With covid, i expect the companies to allocate more funds for online ad spend this year than previous years.
Any thoughts friends?July 13, 2020 at 6:29 pm #7662Rathi_bRegistered Boarder
Hello the bcg vs axis case in nclt has passed an interim order and has postponed the application to be heard for 28.Can anyone please make sense of the interim order. It has been uploaded to the NCLT website.
Thanks.2+July 13, 2020 at 6:45 pm #7663
@lycos-rags-to-riches, you are right (#7658), if BCG gets the LOC this quarter then it’ll be very good. We can see that they are adding reputed news publishers to their B-Local initiative.
BCG has added Boston Globe, The Seattle Times, CBS Local, St. Louis Post-Dispatch, Las Vegas Sun, The Salt Lake Tribune, TEGNA, TimeOut, Deseret News, Real Clear Politics, CNN etc.
These are all very reputed publishers and have a strong foothold in their local cities/states. People in the US trust these reputed (local) publishers more than other news publishers. Most of the above publishers report more news about politics and it will benefit BCG during the elections. During this COVID-19 pandemic, people are reading more from these publishers as they don’t want to see fake news.
During election time there will be more polls and there will be debates between the candidates and the viewership will be very high. Also, Real Clear Politics is a political news site and polling data aggregator, and their business will be more during election times because in the USA there will be many polls to check the ratings of candidates.
As I’ve said many times before, price can go up anytime but building business is very tough. It’s good that Mr Reddy concentrated more on improving business. In the February conference call Mr Reddy said this
“So it’s like — we just see the leaves outside, and then there’s a carrot growing below. I’ve seen one of these visual, where work has been done underground, and I think it’s still not — you’re beginning to see new offshoots at this point. We do hope that soon, you’ll start to understand the depth of work that has gone and start seeing the results.”
So people seeing only price, UC, LC etc are missing out a lot. They should be lucky to get a global player like BCG at cheap valuations.July 13, 2020 at 11:57 pm #7669bhalothia9Registered Boarder
Compared to brightcom, tradedesk share is less than 1% on Adauth,2+July 14, 2020 at 1:42 am #7670adminKeymasterTopic AuthorJuly 14, 2020 at 2:18 am #7671
There are 2 types of Ad Exchanges. One is the Supply Side Platform (SSP) and the other is the Display Side Platform (DSP).
Though SSPs and DSPs work with both publishers and advertisers, SSPs concentrate more on publisher side and DSPs concentrate more on advertiser side.
BCG is an SSP and The Trade Desk is a DSP and Adauth tracks mostly publishers and they leave out advertisers and that’s why BCG’s count is more than TTD’s.
Also Ad Exchanges can be both a DSP and an SSP. Google is the best example for this, Google’s Doubleclick Bid Manager (DBM) is a DSP and it’s Doubleclick For Publishers (DFP), Adsense are SSPs.
You can see Brightcom investors forum Twitter handle, Mr Reddy and Brightcom global have all shared the article about Brightcom being among the top 10 alternatives to Google’s Adsense. It’s a great validation for the effort Brightcom is putting.
It’s not easy to compete with a giant like Google. Suresh and his team are doing a great job.July 14, 2020 at 2:37 am #7672July 14, 2020 at 9:49 am #7673sateannaRegistered Boarder
Regarding the Axis bank case, looks like its not an easy settlement. The below is the gist posted on MC forum
NCLT accepts petition of Axis bank to freeze the preference offer amount until the case is disposed of. Now there are two cases by axis. One in nclt and the other in debt recovery tribunal. BCG says they have one time settlement agreement for 22 crore and have paid 14 cr. But bank is claiming 41 cr.
Next hearing is on 28th July.. We might be in for a long haul on this one too.1+July 14, 2020 at 10:10 am #7674odyseeRegistered Boarder
@sateanna, it is a matter of great disappointment that the Axis Bank matter was allowed to fester for so long despite the OTS agreement. The last conference call held out hopes of the the matter being settled expeditiously as it had been dragged along for long enough. Instead, the NCLT has now frozen the preferential issue monies. This suggests a favourable inclination by the Tribunal in favour of the bank. I hope we get some other positive news from SKR very soon to counter the onset of the very negative sentiments which are again in play. Tiresome and exhausting, as the naysayers gain a strong foothold over us, the faithful believers.4+July 14, 2020 at 1:09 pm #7677
There is nothing to worry about axis bank issue pending in nclt.
1) it is only an interim order restraining the preferential money for any other use, and final order whether this restaint will remain or go will deppent on the hearing for admission of the nclt case, which will be decided on 28-07-2010, the next date of hearing.The case of 2020 ihasn nclt is not admitted yet.
2) The nclt , to my openion, can not decide the amount to be paid, but only can decide whether a restraintagainst using money for other purpose can be issued or not.
3) The main case is in debt recovery tribunal filed by axis bank during 2017. In that case, it appears there is an OTS for 22 Crores or so and out OF which about 14 OR SO PAID bY bcg.Only the remaining need to be paid.
4) As per my reading of the nclt interim order mentioned above, available in nclt site,it clearly appears that axis bank can not approach debt recovory tribunal for restraint, because bcg might be readily willing to pay the OTS balance of around 8 Crores which appears is the matter pending in debt recovory tribunal, which axis may not be able to deviate now in debt recovery tribunal.
5) It AppEArS , due to the above reasons and with an apparent motive to try and inflate the amount now to a figure much more than the OTS, axis is now trying with nclt for restraint for the whole money, apparently to circumvent their Earlier approved OTS itself which may not be agreeable in DRT.
6)There fore it is clearly appearing that around 8 crore is the money to be paid to axis,and the same is clearly informed by CEO in concall.
7) Therefore, according to my understanding there is nothing to be worried, as the nclt was approached by axis bank during the Pendancy of DRT CASE, where it APPEARS,nothing pending as bcg is ready with the balance of already approved ITS.
8) IT IS also clearly appearing, also from the CEO IN THE CONCALL, that AXIS BANK want to go back from THEIR OWN APPROVED OTS, on the ground that bcg delayed payment after OTS. For the delay either DRT can condone it or impose penal interest for the delay. At any rate bcg is ready for OTS BALANCE payment and it appears axis bank in not having any ground in DRT and approched nclt during the pendancy of DRT case, which it appears may not sustain. (I have not gone through the DRT CASE, therefore I may be wrong also. But from the words of CEO it appears the above may be the rough sketch).
9) Therefore, as CEO informed in the concall, nothing is there to worry about for the investors. All the best to all long term investors.July 14, 2020 at 2:35 pm #7680Optimus Prime 06Registered Boarder
Market share increased, direct accounts increased publishers increased..
Only pain is share price IS DECREASING
Attachments:0July 14, 2020 at 2:50 pm #7682Optimus Prime 06Registered Boarder
Market share increased from 1.8 to 2.5% in 6 months more than 38% growth in market share2+July 14, 2020 at 3:01 pm #7683
We need atleast one positive news from management regarding LOC or Daum Settlement to turn the tide again. Else looks like it is going to be the same old story for the long term investors as we are heading back to square one.3+
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