[Logicalspeak]

@ SAUL in his message # 7838,has now admitted that, the following areas have no clarity,which he mentioned in the above message are,

1. Bold-Win
2. Literally Media
3.We-Endeavour group
4.Ingress Ventures (spot and edge case)
5. Onomagic etc.

As such large portion of company’s money is channalised in such ways without clarity of any revrnue or profit, it shoud not end up like promoter create their own private companies by externally using the company and its share holders money.

It Appears already they have mentioned that we-endavour and edge case are not owned by BCG. But Bcg’s earlier appointed preident as earlier updated by company, Shri pasipati, is now (some one posted here that he is present CEO of edge case which was stated as not owned by BCG (whether this is correct or not is not known). Is he presently working in BCG also. To that also no clarity is there.

Similarly ‘we-Endeavour’ is also stated by CEO IN ONE CONCALL, as a stock option alternative to the BCG’s Isreal employees/officials.

But whether any money out of the said 1750 crore belong to company is channelisrd in such areas where conflicts of interests are there, that is, for developing those private companies. This become more serious seeing that company in almost all preveous years writting off the succussive preveous years intangible assets as per company’s published ARs of many preveous years.

My worry is whether company money is getting syphoned off, in such private company development.

We need clarity in all these areas.

Let us not conclude any syphoning off or frauds, but let us compel the company to clarify how and where 1750 Crores of company’s hard cash is deployed.

[T9C]

@logicalspeak,

Pisipati is not CEO of Edgecase but MD of Trayan.in, this is recently launched.

Not sure if he is still with BCG.

[Logicalspeak]

Thanks @T9C, for correcting me. I stand corrected in my #7847 to that extend in ur #7848.

[Logan]

1>

@Logicalspeak, Now I’m understanding your intentions, you want everyone not to think logically and you want them to make up conspiracy theories just like you.

You are targeting me because I debunked all your weird theories and somehow you want to turn everyone against me. Why do you want everyone to hate me? What will you achieve doing that? This is so childish.

If you continue to do this, I may stop writing in this forum and there won’t be anyone to debunk weird theories.

Don’t mention my name ever again in this forum, if you mention my name then I’ll ask the admin to take actions against you. If you want answers ask others and never ask me. But at the same time don’t make up weird theories. It’s really annoying.

You have a clever way of manipulating others’ sentiments and it’s so obvious, at first you accuse the company of weird things and later you write good things about it. You don’t want people to think about your true intentions but it’s so obvious to us. All your posts are the same.

Last time you made up few conspiracy theories about LOC, Consolidation, Buybacks, dividends etc and when I answered all those, you came up with revenue growth and when I answered that also you are coming up with Bold-win, Literally media etc.

[Logan]

2>

I still don’t understand how BCG could’ve grown their revenues more, now also I want an explanation for your arguments. Give out more facts and then when you are right I’ll change my views, just repeating the same thing again and again won’t make any difference. From the day one I’m asking you to explain but you have never done that.

If you have proof that the company is siphoning off money then share it with us or better give an official complaint to the authorities, they’ll take action. Nobody has time or energy to think about your “guesses” and weird theories.

The company can lie to us with profit & loss statement but they can’t lie to us with cash flows.
Why Criteo also has not improved its revenue then? There are various factors for that which we both don’t know about.

Regarding comments on MMB and other platforms, people who are commenting are retail investors just like you and me and they don’t know anything about the business, their job is only to comment and they want the company to fix all the problems at once and they want quick solutions for complex problems. That doesn’t happen in business, it’s not easy to run a business. Taking their opinions is waste of your time, you won’t get anything from it. If they are genuine then no problem but they keep repeating the same thing again and again even after addressing those issues (just like you).

[Logan]

3>

When it comes to intangibles, BCG has their own proprietary platform like Compass, which they develop on their own and that may not result in profits immediately. Also the whole industry is changing to programmatic advertising and as you know we can’t expect to get profits immediately in new areas, so BCG may have tested that and they may need time to adapt to that.

When @bitran brought up the topic about bold-win, he didn’t say that BCG hid something from us and I also didn’t say that BCG is hiding something. All I said was that there’s lack of clarity about few things. There’s a big difference in that.

You are trying to make it a big thing about this. You have posted that I “admitted” about that. There’s nothing wrong in admitting about confusions, like everyone I also have confusions and instead of making it a big thing like you are doing now, I want clarifications on that. Just asking for clarifications doesn’t mean that the company is hiding something. I’ll always comment on things that I know (unlike you) so I want clarifications on those before I start commenting.

Regarding Bold-win, maybe it is like edgecase (Ingress ventures). BCG may have made an agreement to buy equity in that in the future and at present they may provide manpower and technology for that. Yes, there’s no proper information about that and in some cases because of various reasons they may not reveal complete details until some material developments happen. They may not want to hype about something and later when it fails then investors may start accusing them of weird things (just like you are doing now).

As @bitran said BCG may test the waters now and if they succeed in that they may reveal the details.

[Logan]

@bitran, please write frequently in the forum. We need someone like you who understands reality. The forum will get even better if you share your opinions. From now itself we can start preparing questions to be asked in the next conference call and your suggestions will help us a lot.

[VALUEBUYER001]

Dear Saul Goodman Ji, thanks sir for the pains undertaken by you to write about BCG in a detailed way.very glad you are sharing lot of your knowledge in the forum.your good work must continue.dont bother about some people who are intentionally irritating you.thanks again

[admin]

@logicalspeak – you are again coming with same stuff in spite of agreeing not to repeat. Share supporting facts when you put forward some serious allegation. You are creating a atmosphere which is disruptive and against the forum guidelines. Please see that you do not repeat it.

[Logicalspeak]

@ Dear Admn,

I acknowledge your message at #7859 above.

I am not adding anything further but leave the same to the readers of this platform and consider the intelligence of readers’ of this platform much higher than the collective intelligence of all boarders who are posting here.

Therefore, let them read all messages and come to their own conclusion.

[admin]

@T9C – I think you are not aware that launch of b-local product was announced in the month of March itself on social media & their website and we have discussed about it here #post-6026

If you cannot share any information, please do not try to push something baseless. I already see that yourself and @logicalspeak are trying to make this another mmb forum.

Proud to share our new B-Local exchange! Offering advertisers an alternative to the “faceless masses” of a broad #programmatic approach by re-incorporating brands into the community. Learn more, join us: https://t.co/HZkPN7V6gk pic.twitter.com/1jkn0kZ9d5

— Brightcom (@BrightcomGlobal) March 18, 2020

[T9C]

@admin,

you read my post(0#7843) again, it was about informing exchanges. They can post many things on social media.
My point was why did not they inform exchanges immediately once they launched it.
Do exchange rules say that listed companies can inform about any development after it becomes success only or whenever they want?
I was just exposing the issues based on facts, Why you are not allowing even small bit of criticism?

[admin]

This is not about my reluctance to accept the criticism but am skeptical that there is some agenda by some boarders(who may be from mmb) to disrupt the meaningful discussions happening here. Bitran brought a very good point and logicalspeak interfered to ruin it and being aggressive towards Saul which is not an accepted behavior. Henceforth, both @T9C and @logicalspeak have been blocked.

[admin]

OnoMagic – our managed publisher division – is a managed solution for publishers to improve monetization & ROI in the programmatic world. It takes the headache of managing complex technologies away from publishers so they focus on creating great content.https://t.co/n4tZHLVDaj pic.twitter.com/3ZwfXKxg9B

— Brightcom (@BrightcomGlobal) July 29, 2020

[VALUEBUYER001]

Thanks dear Saul Goodman Ji for your energetic posts which rejuvenates tired long termers of BCG. I hope BCG will get loc before August end

[aindia]

2020_BCG_After a Roller Coster Ride-Ripe for scaling upto a conservative STOCK Valuation.Some triggers to look forward to:

Check “comments”against each of the listed triggers.
———————————————-———————————————-———————————————-————————————

A.  Venture Capital and Private Equity Firms-Exit Impact :
Passport Capital, Eight Capital and Venus Capital sold during 2013-16,Sansar Capital during 2014-17, Everest during 2018-19 and Oak in 2020.

Comment: Rs.150 cr (legacy) write off 2012-13 was the first of the triggers for the above exits through the period up to now.

B. Perception about Management (cloud of negativity-trust factor / write-offs in the past /delays in addressing TRs)

Comment:
So far management attention has been drawn majorly to post-merger legacy issues- write offs, paring down of debt.

C.SIGNIFICANT IMPAIRMENT: Sizeable Impairment of Balance Sheet, of more than INR.865 cr, in FY 2020, declared out of the blue was un-anticipated by shareholders. 

Comment :
Amount, certainly, is huge. Management, chose to bite the bullet (accumulated over the years), when the Bal. Sheet size (Assets) could accommodate/ absorb. What is understood here, realistically declare the redundant/ non- productive assets (could be mix of legacy assets came through ( around 14%) acquisitions, and / or freshly invested but that have lost the relevance). It could also have resulted from the DD process requirement of LoC provider.

D. STRAIN OF LEGACY DEBT: Multiple Bank loans contracted at high cost( around 14%) prior to reverse merger, left a lasting strain so far.Initially pared (from 2013) some big component of them.

Comment:
O/s legacy loans turned NPAs. The tragedy has been that these loans have nothing to do with generation of top and bottom lines. However, they certainly impacted Stand Alone financials under the line item- Interest Expenses.
Company therefore accepted OTS offers, closed SBI and Canara Bank loans. Already pared significant part of Axis OTS offer. Company is actively pursuing the closure process, negotiating the last contours to pay off and earn the coveted Debt- Free status.

E. BCG is way too ahead of its competition due to its first mover advantage backed by multiple providers of technologies that help in minimising Fraudulent Traffic.

Comment:
Consolidating Tech Combos such as DM,AdTech,AI, ML

F. Industry canvass on a spiralling growth path. Industry drivers are at this time showing a mixed outlook

Comment: BCG took the early warning seriously , began working closely with multiple vendors to focus on creating fraud free traffic.

G. Unaudited June ‘20-results are likely to be healthier

Comment:
BCG well prepped to capture , in their favour, incremental business from DM industry weaklings due to cleaner traffic

H. Significant YoY EPS Growth is to be expected (2021 over 2020). Consistently healthy and sustainable PAT figures QoQ, which are expected to grow as we move into next decade (FY2021-30 and beyond).

Comment:
Let’s look out for clues from June Qtr results EPS Growth is expected to be material in the election year ( FY2021)

I. A fresh beginning on DIVIDEND- made an announcement in the recent past,a paltry one at that.

Comment:
Subtle clue to ease of pressure on REAL CASH generation.
Dividend Yield (on FV of Rs 2 and even on recent lows) should be very healthy over the period: 2021-2025.

J. The management for the first time began to hint at India as a territory to bet on.

Comment:
This incremental business would drive top line and bottom line growths and margins in the coming years.

K. Prospect of the pending settlements on the horizon:

Comment:
While settling the outstanding issues,
BCG could make significant savings (delta from Provisions to Actual Payables- including to 3 of Indian banks, Daum)

L. Entry of one or two MFs/ FIs:

Comment:
As it happens, it would be an added endorsement of the Quality of Management and the Financials.

M. PLEDGED Shares: Very High % of Promoters under pledge
 

Comment:
Shows promoters’ conviction about growing business.
More recently, the % of promoters’ pledged shares is progressively dropping (from 60 to 50 to 33 
and a basis recent debt clearances a further drop is to expected)

N. DAUM –Long -Drawn Battle:Root of negative influences on various performance metrics for a long period.

Comment:
On hind sight, conclusion could be that it was a battle well worth fighting on merit –now a closure on the anvil. Daum, to end this thorn in the flesh, may have conceded a few million dollars.

O. DM/AdTech are least understood:


Comment:
Covid-19 didn’t leave that choice, any more.

P. Free Cash Flows – A sorry story:

Trade Receivables impacted throughout an otherwise growth phase of the Company.
 


Comment:
LoC attempt is precisely to ease the stress (of TR) on business growth in the very near term. We can expect 2020-21 to spring a pleasant surprise,should the LoC happen quickly in the period ahead of US Elections.
 
While the absolute number is as big as Rs.983 cr, the growth trends are suggestive of “less than proportional” increases in TR, compared to growth in Topline. This could also be eased, on the back of Annual Revenues crossing the $500mn.

Not too long ago TTD ( Trade Desk) landed with an LoC of $150 mn, suggesting that there is a clear appetite for it.

Q.We should be looking for the following triggers for growth in free cash flows:
1. Once Axis Bank is out , Debt Free Status, on prospective basis, releases annually INR 15 cr ( interest expense line item).
2. Once Daum is declared as settled, Lycos’s performance should throw up incremental revenues and profits.
3. The growth in margins/ profits coming from the low cost ( for TTD it is around 2.2%) LoC.
4. Incremental Releases from the deployment of LoC monies in strategic partnerships/ investments in start ups.
5. Growth in fraud free traffic, longer screen times aided by Corona and US Elections.
6. Delta ( positive) between Excess provisions made vs actual payments to the likes of Daum and Banks (as per granted OTS amounts by SBI, Canara Bank and Axis Bank)
7. ………and the list goes on and on.

[VALUEBUYER001]

Great dear Saul Goodman Ji

[odysee]

Saul, is there any indication or feedback on when the consolidation exercise is likely to be completed? If my memory serves me correctly, the January conference call suggested a conclusion of the consolidation ( plus a holding company being in place )and LOC after due diligence by May/June 2020.
Given some delays on account of COVID-19, are we close, very close or almost done?
Or does the overhang of Axix bank keep the proverbial spanner in the works till settled? The last conference call confidently suggested ( pardon the grammar), that 95% of the exercise had been completed, and things would be wrapped up ‘very soon’. I was hoping that the June quarter results whenever announced would give the consolidated results of the 12 subsidiaries. Or do I hope in vain. It’s frustrating to see BCG not getting the recognition it deserves from market participants.

[Logan]

@odysee, I have the same information that you have. I don’t want to guess or speculate when they may get the LOC.

I want them to get it before the campaigns for the US presidential election starts. The election date is November 3rd so the campain may start from September end or early October.

I think this time the spending on ads will be more because of the pandemic, many people will not attend the rallies.

Signing reputed publishers this year was a smart move, since social media is getting a lot of negative press these days, the traffic will be more in these publishers website.

[odysee]

Apologies. Meant Axis bank , typed Axix.

[Author]

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