[Optimus Prime 06]

Next triggers
Sep 14-17 analyst meeting
Sep 22 NCLT hearing on axis bank..

[Shivashankar]

Iam observing trading pattern every minuite for few days normal trading happening.

[hw_tw]

After a slight dip in market share from 3.3 to 3.2%, AdAuth is now showing an increased Market share of 3.4% with 35.8k unique publishers.

If I remember correctly, SKR has mentioned in the concall about increased addition of publishers while there is decrease in rates.

For some reason SKR hasn’t spoken / tweeted about AdAuth figures anywhere while he mentioned about Adzerk report. Request @admin, @mayur to bring it to SKR’s notice. It would be good if he talks about this so that investors take these numbers seriously

[hw_tw]

There is an interesting discussion on MC board on what would drive the price

I would see broadly there are these 3 factors playing in investors mind
1/ Growth in business and revenue
2/ Increase credibility by closing Axis, Daum issues and bringing in BDO
3/ Corporate Governance with clear and timely updates and prompt responses to retail investors emails

While all the three Goals are important for the CEO, I would feel goal 1 carries high weightage compared to goal 2 and 3.

Goal 1 would keep SKR and his team’s morale high. Note that it is very difficult to keep employees motivated for long without increase in business. Also it would become difficult for a company to attract talent when the company is not growing. Same would be the case with customers too. They would want to partner with companies which are growing rather than with companies with stagnant gowth and not a buzzing company.

From the investors point of view too growth is a important factor. Even other factors like collection period kind of things gets sidelined as long as company is growing. The PE in a way gets adjusted when investors start seeing growth. I don’t think there is any investor who would say that they don’t care about growth.

May be not a right metaphor. To me its like Ambassador versus Maruti where the customers, employees and investors are all interested towards Maruti because of its growth factors

While Goal 1 is very important and carries a high weightage there are times where the CEO has to temporarily change strategy and give high weightage to other goals too. Especially to Goal 2 as it is also hampering your Goal 1.

I feel the credibility of BCG has taken such a beating that even if it shows 50% growth on y-o-y basis too it will not be believed by the investors especially the larger ones.

SKR is doing good by arranging Analyst meets and also working towards closing these issues one by one. I feel what matters is the speed with which he moves towards closing these issues. This would bring back the lost credibility both to him as a CEO and to his company.

It would be interesting to know from fellow investors if they are in shoes of SKR which goal they would give high importance and why

@admin – not sure if this qualifies for a separate thread. If so, please move it

[Logan]

@hw_tw, I don’t think adauth figures are so important, Rubicon Project which is Brightcom’s competitor has a market share of 40.4% but Rubicon’s revenue ($156M) is not even half of BCG’s ($381M). If it did have a big impact then BCG’s revenues should have increased a lot as the market share last year was at least 20-40% less than what it is now.

I don’t exactly know whether Rubicon is a direct competitor but both concentrate on the supply side of things. Also Rubicon and Telaria (which has a market share of 3.7% on adauth) merged to form a new entity called Magnite Inc.

As I always say adtech industry is very complex and we really need to discuss about these interesting things with the CEO so we should ask him to arrange a conference call to discuss the business side of things.

In earnings call everyone’s focus will be on outstanding issues which are also very important.

[Rathi_b]

Admin can you collate the points and write it to the company as queries from the forum officially.

[Rathi_b]

Or would you advise individual mails in this regard from all the members of the forum with a set questionnaire in this regard. Which do you think would be a preferred choice.

[odysee]

@Rathi_b, it would be better for admin to collate all the points and submit them to the company for a response. We did succeed to some extent the previous time. The problem is the intervention by some shareholders in the conference call who deliberately appear to ask irrelevant questions and eat up substantial time, leaving others with more meaningful questions waiting in the queue and not getting a chance to interact with Mr Reddy. I really do think that BCG management needs to allot substantially more time to the conference all. And I sincerely hope that this time we will get clearer answers and timelines. Or is that asking for too much!!!

[Rathi_b]

Hopefully, but that’s difficult with corona investors all around swarming up their anxieties during the concall. I personally prefer not being there for questions because it has been like that for the past few concalls atleast. I’d much rather prefer a good descriptive and sound reading than listen to people venting unnecessary insecurities. So I hope admin makes the choice because either way we can be effective ( officially by forum or bombarding them with the same questionnaire 100’s of times).

[sateanna]

I expect SKR is going to answer all the main questions upfront before we ask him, like last time. Expect status quo on all issues. Only thing left now is to meet him in person and ask him.

[odysee]

If one expects status quo on all issues (again), then we may as well have no expectations on the stock price ever getting even close to book value. Even getting back to low double digits of 13.02 ( a fleeting chimera) may be a very difficult task. The business may be complex and great , and the promoters may happily live with that and their vaunted position in the world of ad-tech, but the retail investor is a little simplistic in his understanding and expectations- invest his/her hard earned money in a listed profit making, decently managed international company, and make a decent return on the investment. That has proven to be an exceedingly difficult enterprise over these many years. Remember the first caller in the conference call in December 2019? His anguish was palpable-invested equal amounts in a bank deposit and BCG many years ago, and the comparative return on investment as of then ( Dec 2019) was shameful. Even Mr Reddy appeared moved and displayed genuine empathy and suggested the investor should not lose heart, and declared that things would change very soon as the company was at an inflection point. Well, we, the long term wretched lot of retail investors at least , cling on to our hopes that, one day, the tide will turn and BCG will gain recognition in the financial markets too.

[Shivashankar]

Anybody know the concall toll free number Bcg still did not mention the no on their website.

[Investor_2022]

It is there, check it.
http://brightcomgroup.com/investors/
INDIA ACCESS NUMBERS
1800 103 3881
91767 96600

[Raj]

Looks like we’ll have more negative feedback / comments coming till December.. Happy investing..

[Rathi_b]

So was it any fruitful? The concall.

[Shivashankar]

Most of the questions answered which sent in this forum thanks to admin and Logan.

[Shivashankar]

Axis loan will clear in this month and daum and loc will take 3 to 4 months time.

[Rathi_b]

Thank you 😊

[sateanna]

Looks like all depends on the loc which will take max another 4 months as per skr.. The plan is get loc and then clear daum.. This is a surprise as the loc was to be got on the bais of the new consolidated entity… Which is on hold as of now. Overall a disappointing call with extention of time lines..only positive results improving without the loc

[Rathi_b]

Anything about stake purchase in the open market and any delay deliverables. I apologise I didn’t attend the concall.

[Author]

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