[Raj]

Dear Logan, your views makes lot of difference for the investors community.. For the markets to believe bcg, Skr should first close the axis bank ac at the earliest..hope Bcg will come all guns blazing going forward.. Regds.

[drjaysee]

Dear Logan, thank you very much for sharing the insights about BCG and greatly appreciated your in-depth analysis (I am learning a lot about BCG Business from your analysis). However, personally what I feel is that first of all BCG should get some trust among their investors by settle out Axis issue which is a tiny part of their profits and of course all the remaining profits can be reinvested on their business related to technology update. Hopefully, Axis issue will be settled at the earliest (by 1st week of Nov 2020), so that the share price could be trading at its fair value considering its current EPS of 9.25.

[VALUEBUYER001]

Let us hope BCG to close axis dues before 2 nd November 2020

[odysee]

Thank you yet again @Logan for your steady and balanced chain of thoughts that you have shared with us.
All the points and rationale provided are logical and reasonable in the context at hand.
At times, frustration gets the better of reason, and one articulates it in a not very pleasant manner as has been the case this time again on my part.
Point well taken- growth is the key, and the company has taken a very balanced approach to try and achieve that without compromising on profitability. Most start-ups and rapidly growing companies are actually loss making, burning cash and have negative cash flows. Many raise funds regularly but continue to be cash negative despite high growth. And yet getting high valuations in the market place.
Effectively buying growth (with fresh borrowing or raising capital) continuously but not making profit for years on end. And yet the market rewards them. That’s the nature of the beast.
Thanks again. Looking forward to a very bright future for our Brightcom.

[Logan]

@odysee, the main reason for our frustrations is that there’s so much manipulation in share prices. It has been happening since many years and Oak selling made matters even worse.

Business wise, the company took few bad decisions which resulted in this current situation. They should’ve been more careful when they bought Lycos from Daum (they should’ve put some clauses in the agreement), then they shouldn’t have let LGS management lose focus on the business which resulted in the receivable write off. These 2 things are the main causes for the crash in stock price (what was already bad, PE selling made matters even worse).

Lycos Life was a failure where BCG burnt cash but if it had clicked then we’d have seen even higher growth rates and better cash flows (now almost everyone has a smart watch, BCG was early in that). I don’t think they spent much on Apollo Lycos and they never took it seriously.

The best thing is they didn’t lose focus on digital/online advertising, and in fact the best investment was made on programmatic advertising platform “Brightcom”. The online advertising industry was going programmatic and BCG’S management team took a great decision to start Brightcom. The future of advertising is programmatic and starting Brightcom opened up many opportunities for BCG.

[BBPopuri]

I guess It’s all due to the lack of faith on promoters and there are no long term investors in the market. People are looking for overnight gains and are exiting with nominal profits are after hitting their stop losses.
I even think at times that SKR may not be interested to focus on improving the share price. High valuation for share price might hamper the settlement with axis and daum. Until these two issues are settled I don’t think the price will go up.
You people in this group gave me enough confidence to hold it for long. My first few shares I bought about a decade ago. Kept on adding at periodic intervals. My average is a little above the present market price. Few thousand shares away from my target quantity. Looking for another fall to ₹3-4 levels to buy more.
My suggestion for all the friends here is not to worry about the day to day price fluctuations and stay invested for a long time.
My multi baggers I have held with huge loss for a decade or two decades before they were recognised by market as multi baggers.
Hope BCG will take us to a different orbit in another decade in the worst case it takes away all our profits of the previous decade.

[Raj]

Brightcom is an IAB-Europe REGISTERED vendor.

Attachments:

1. 

   IMG_20201020_220457-1.jpg
   

[Anonymous]

@ PBB in equity market time investment important, but it has to be invested in good company. BCG is a good player, but in share price it’s not reflecting. Next 6 to 12 months will decide which ways it’s turning. I was talking one of my friend who has good knowledge about stock. He gave me a good advice, which is funny although I can’t ignore it. He said his philosophy of investmt is the head of the organization must get up early morning. He explained me early morning is the ideal time for out of box thinking. Later, he told me from that habit you get the idea of following things a. He validates to himself that time is important for him in his life whether personal life or professional because time management is important. B. Second point he told me when you invest believe in it fully. Don’t be hypocrite after buying. It is perfectly fine before investment think 100 times. I really feel good after talking with him. This article he told me to read this article. Tittle is
10 highly successful people who wake up before 6 a.m..

[rahul]

Hello everyone,
I am quite new here and also a fairly new investor of BCG, still trying to understand the business of BCG. More and more as I read across different threads in this forum my conviction to BCG just keeps growing. I thank all the members who are actively taking time from their busy lives to help new investors like me understand BCG’s business.
I have a very basic question, to solve all the outstanding issues BCG needs cash right, would it not be a very smart idea from a business perspective for BCG group to dilute stake in one of the subsidiary to raise money to solve all these pending issues.
Obviously, the BCG group (the holding company) is not valued at its fair valuation but would any of the private equity firms would not be interested in BCG’s subsidiaries (like Online Media Soutions) and give them fair valuation?
Does it at all make sense for the holding company?

[Logan]

@rahul, I don’t think that’s a good idea when you have other options. LOC which is taken against the receivables is a better option because you are taking your own money in this case.

With selling a part of a subsidiary you may have to listen to other investors and you can’t take decisions independently. In the future if you want to consolidate all the subs then you’ve to buyout the investors’ shares and that time you have to arrange funds. Those investors obviously will ask a premium price for their shares.

It doesn’t make sense to sell a part of a profit making company to get back Lycos or to pay off India debt. Though both are important from the market/valuation perspective, business wise it doesn’t make sense.

It’s the classic case of “kill the goose that lays the golden eggs“.

[drjaysee]

Uploaded on BSE website on 20 Oct2020 @23.59Hrs

Attachments:

1. IAB_Europe_20Oct2020.pdf

[Anonymous]

God bless us. The less we talk about management the less agony we will have. Don’t expect anything from management until god help us. First praying for axis settlement.

[nitin_asce]

@logan generally from my experience when things started moving positive stock takes time to go up. So I think even if axis and loc are resolved, the stock will give decent chance before moving up.

Somehow got a feeling some of the issues are more of kind of ego issues and like
Daum & lg’s kind of cheated or let’s say outsmarted bcg so let them go through pain also. But this had a reverse impact on bcg market cap. Now it looks like company is seeing some big opportunity and that’s why they want to solve the issues.

[nitin_asce]

However I think now it seems the intent to resolve issues is there and it is very important. Few days back I saw on twitter that people have started getting replies from bcg for their emails.

The other thing which I am not clear about or have doubt bcg having some understanding with new companies where they have an agreement that they will get stake once it reaches predefined scale. This was on one of the concalls but I don’t remember company name.

[nitin_asce]

This investment may have been hidden under any row in balance sheet which I am not expert in reading.

But could not understand what result bcg got by doing such things. Or is it a lottery (very less probability) and it will be visible once axis and daum is solved.

They have to dilute 10% of stock at 30crores rupees peanuts as compared to company business.

[VALUEBUYER001]

@Logan sir I think otherway if the share price is ₹100 preferential offer would have cost 315 crores which promoters got at such a low valuation of 31 crores

[diamond_2017]

@nitin_asce – i think the company you are suggesting is Edgecase.AI , yes SKR had mentioned that they will get some stake once certain threshold are achieved, need to wait and Watch

[VALUEBUYER001]

Daum settlement amount already provided in last year bal sheet. Where that contingent liability has gone? No need to fool anyone by loc drama. Else they can give rights issue and close daum asap, even if contingent liability which can not be written off in balance sheet is already written off or misused or diverted for any other purpose.sorry I have to use harsh words

[Anonymous]

@valuebuyer market take it as a wealth destroyer and punishing it badly. Every delay will create more confusion. More importantly, market doesn’t value it at all at least now. Reason is trust deficit. Mr. Peshwa after inclusion no news. Really surprised about it.

[aindia]

BCG Performance on ADAuth platform :

ADAuth: Ads.Txt Compliance: Grouping of BCG metrics within about 22 lakh entities sitting on ADAuth database. We should also factor for growth in participants in this database.
——————————————————————
%Growth in Count of DIRECT ACCOUNTS on over 13 months : 299%

17474 on 17Sep’19
to
69704 on 24th Oct 2020

Delta: 52230 ( up 299%)
——————————————————————
Ratio of Direct vs Reseller a/cs, changed in over 13 months

73:27 on 17Sep2019
to
88:12. on 24th Oct 2020

Ratio changed for the better heavily tilted in favour of DIRECT, which yields “very high” margins.
——————————————————————
%Growth in PUBLISHERS Count grew in over 13 months : 117%

17524 on 17 Sep 2019
to
38130 on 24 Oct 2020

Delta: 20606 ( up 117%)
——————————————————————————
% Growth in Count of TOTAL ACCOUNTS in over 13 months : 252%

22572 on 17 Sep’19
to
79406 on 24th Oct 2020

Delta: 56834 ( up 252%)
——————————————————————————
Fantastic all round upward trend.

So far , BCG has covered just 79406 as the total count of the whole of 22 lakh entities………Still to cover 21 lakh more of the prospective universe. This count of 79406 assigns about 70 th rank. We should expect BCG coming out with higher numbers once Daum n Axis issues are closed. A much healthier global rank.

[Author]

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