[antojp27]

Thanks for creating this forum. I just thought of sharing what I found.

My guess is We-En.com is an investment company which invests in many ad related business. They also claim that that they do invested in Brightcom.

Another one to look is ingress.ventures which also invested in multiple companies including edgecase.ai which is a client of lilprojects.in

So I think Brightcom itself invested heavily or owning these two investment companies. Maybe they did this to protect from Daum.

[BCG4LongTerm]

True, Two top executives of BCG are running these investment firms.
Jacob Nizri running We Endeavor and Brad Cohen running Ingress Ventures.
BCG has perhaps invested atleast 200+ crores(106 crores in Fy16 and 100+ FY19) into these investment firms.

If these companies are brought into mainstream, through acquisition, that can add significant revenue growth.

[VALUEBUYER001]

Hi friends, if BCG has invested Rs 200 crores in these investment companies, does it show we n in the balance sheet of brightcom group as investment? please tell if anyone has studied balance sheet thoroughly.

[BCG4LongTerm]

VALUEBUYER001, Yes. It’s there in consolidated balance sheet as Non-current investments. However, there is no mention of the details of the investments.

Mar’15 Mar’16 Mar’17 Mar’18 Mar’19
6 109 107 106 225

In 2016, the investments increased by 103 crores and in Mar’19 b/s, further increased by 119 crores. Total of 222 crores of investments made.

It’s important to note FY16 is the year, when Jacob Nizri established We Endeavor. It’s my strong belief that BCG has some equity in those companies and BCG may acquire them at a later stage.

[108BULLGURU]

Vluebuyer and BCG FOR LT,
I questioned the management in writing on many issues and investments and loans was one of them asking details to whcih they did not respond.
So it raiases manuy issues if all this is above board. I dont know. I am not a corporate lawyer.

[BCG4LongTerm]

108BULLGURU, That’s true. The disclosure quality is extremely poor under the excuse of Daum. My mails also asking clarity about the investments went unanswered.
We need to watch out for disclosure levels after the Daum issue is closed.

[BCG Hopes]

Many companies managed by Ingress ventures were acquired by companies like Taboola. I wonder how it transfers into investment returns for Brightcom, if any.

[BCG Hopes]

It’s frustrating to see many high potential connections collaborations with good players in ad-space and yet no clarity on anything and no big growth.

[108BULLGURU]

It is all very convoluted. All about as if hidden in swings and round abouts, all a maze and you are lost and cant put a finger on what is what. That too when it is not that big a corporate lke google or infy or tcs.why…so if at all

[BCG Hopes]

In a way, I understand all this confusions comes from the fact that BCG growth has been almost purely Inorganic and all the subsidiaries are autonomous it could be also the agreement terms of acquiring these firms. But I think at some point SKR has to put efforts in clearly spelling out every subsidiary chalking out a financial plan in sharing the profits of subsidiaries etc. So that it all doesn’t look like a poorly managed indian Joint Family account. Take some from here, give some there, put some somewhere else, bury some, burn some for the spendthrift useless son etc.

• This reply was modified 4 years, 5 months ago by BCG Hopes.

[BCG Hopes]

It would also be great to have some big names like Jacob Nizry, Brad Cohen etc on the board of directors of BCG India and get them attend the AGMs etc. That would change everything.

Atleast a Video-conferece or participation in a con-call, they need not answer anything just a token presence would do a lot towards the credibility.

• This reply was modified 4 years, 5 months ago by BCG Hopes.

[108BULLGURU]

Very well said.

[antojp27]

My guess is they kept these investments hidden for the Daum closure. Once that is sorted all will be clear in the period of 3 to 6 months.

[Gchittu]

Dear antojp this is our presumption only……. anything may be possible…..it is not a big corporate as if like infosys, tcs……….it take some to recognize the market its true value…….it is too early to guess anything……we have to wait for at least 3 to 4 quarter results and sincere disclosures to be made by SKR……… gain faith in the market by paying dividend…..we hope for the best…..

[BCG4LongTerm]

SKR has been talking about consolidation of all subsidiaries to simplify the structure for long. Hardly any progress is visible on that front.

[BCG4LongTerm]

In the past, SKR got Brad Cohen(Lycos Life launch), Gali Arnon(when Brightcom was launched) for interviews with Indian media. As Daum issue reached its peak, media is completely avoided. Going by the past, we can expect SKR will bring the team to the forefront after all issues are resolved.

[VALUEBUYER001]

Unless SKR pays a decent DIVIDEND no one is going to trust him

[108BULLGURU]

Totally agree with you.

[108BULLGURU]

Since how long you have been following this board and company.People have been talking of these 3-4 quarters for the last 5 years.I am one of them. Those 3 -4 quarters many of them came and gone. And BCG kept sinking. So were the unfulfilled words of the management. They never delivered on any timeline that they promised re any thing.

[Sobha]

Like many Other investors, I had also invested from 2014 onward. My entry price first was nearly 50 rupees. Later, I started averaging this stock by selling other stocks. Now, 99% of my holding is this stock. Naturally anybody can assume my stress.

Having said that, I have to say something just opposite also. Now I am much more confident than earlier times. There are some reasons for that.

1.There is evidence that the court case has ended in the US. Without some type of agreement between the concerned parties it is not possible. SKR said that they have came to an agreement regarding the amount to be paid. This is a very high possibility considering the ending of the court case. Further in a conference call, SKR said that – the investors will feel happy, once the agreed amount is disclosed, but right now he is not in a position to to disclose the amount. When the US judge asked DAUM to go to the Indian court and fight with the Ybrant India, DAUM judge replied – It is nearly impossible for anybody from outside India to enter into a legal battle with in India. Why Daum came under pressure is answered by this statement alone.

2.The domestic bank loans are in the process of getting cleared; maybe already cleared. There is evidence to that also. If the verbal agreement between DAUM is a lie, it is unlikely that the second part happened.

3.The results in the last few quarters are flat. But the results would be correct considering the number of Impressions that is getting to brightcom, Israel. This can be verified with third party sources. There is a chance that the results are under reported in order to pressurize Daum.

4.The claimed amount by daum is 36 million which is 250 crore rupees. According to SKR the amount is 16 Million or near to 120 crore rupees. There is a logic in keeping the market cap of the company much below the first amount and just near to the second amount for effective bargaining. A company which is having a market capital of 20 million cannot pay loan of 36 million prime facie. Any court also will agree to that.

5. I do have my own doubts about the status of LOC. Because in the modern world a personal loan needs some 3- 4 minutes. Business loan also, some weeks or months. but now in this case, the loan story is reaching 2 – 3 year, if we take the earlier oak story also. Further, from where he is getting a loan is a secret. Nobody can verify that. And more than that, it is unlikely that a loan of 150 million will be available to a company having market capital of 20 million; where the promoters are having a holding of rs 8 – 9 million. He may be playing a trick to bargain with Daum. It is likely that the amount may be paid from internal accruals.

6. Regarding preferential issue also I have my own doubts. First they were saying about rights issue. That was a dilution of the stock. It’s not a good thing where the promoter holding only 40%. Then they dropped that Idea. Then came the new idea of preferential issue. But for preferential issue to be achieved, they have to prepare the story in that way. But here, the resolution to take a loan from the director is not taken in board. The loan is not reported in the annual report. So this part of the story is also doubtful. The story narrated in the court says that the company doesn’t have money. Now if they are paying some loan, they have to show the source of money. Maybe, the director giving a loan is a story to cover that. More than that, When the stock is available for 3 – 4 rupees, why they need preferential shares at 10 rupees?

7. The performance of the stock in the last 2 years is also notable. In 2017 second half, this stock was around 5 rupees. It has made an average 50% correction from then onward. But most of the small cap stocks during this season made a correction between 50 to 95%. This means that, in this season the stock has not under-performed. This was a time when two major holders exited. Still the entire stock is absorbed. We know who purchased that. The previous history of the new entries(Goenkas) make it clear that the stock maybe for a long Bull Run. Anyway, the entry of such people without looking into the fundamentals is unthinkable.
The newly entered people have to exit at some point. This can be at the peak of a bull market. Usually a stock goes into bull run along with general market. So it is reasonable to think that we can expect such a movement along with the next bull run of the general market where the broad market is participating.

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