[dgm]

Revised Post

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.

[dgm]

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.

[dgm]

Dear Rajesh Patel What is today’s oak disclosure.

[dgm]

I very hesitantly submit some observations as below and no arguments please –
1. Menasa Research Report gives adjusted book value of around Rs. 30, and mentioned some discount on account of subsidiaries and due to covid-19 some discount on account receivables.
2. Recommendation was Strong Buy for a target of Rs. 12, which was to be revised after results. Let us wait for it.
3. More than 2% shares have been bought on 3 trading days and even on Friday 0.5% shares were bought.
4. BDO involvement is very strong positive factor even if some necessary cleaning has resulted. At least value becomes more clear.
5. Future seems to be better, at least better than the times when no equity analyst was covering the company and there was not a top 5th auditor involved.
Companies go through such things. Mergers and Acquisitions are very complex things and many times companies face issues.
If the business (is stable if not growing) and the company survives, you don’t loose in the long run.
Let us hope for the best.
I would also like to add that to my view neither company is interested in taking back Lycos nor it is worth. Again this is my understanding.
I may be wrong in any of my observation. Take it as you may correlate. And make your own understanding.
I also do not feel long conference call may serve any purpose, as companies do not disclose very clearly to retail shareholders, which they disclose to equity analysts and auditors.
And why to bother CEO so much when he is having lot else to do to run the business. He is running the business not us. Let us not suggest and argue too much.

[dgm]

Let us hope Oak selling is done off market in one go. And the market price of BCG becomes stable/rising. That’s what we all want.
I am hopeful of the same happening.
All other issues are now almost over, biggest indication of which is their continuous efforts to reestablish faith in corporate governance through their disclosures/ responses/ updates since some time.
Let us keep Hope.
Let us keep Faith.

[dgm]

Saul Sir
Regards for the detailed information contents on various aspects of the company and it’s business including unfortunate circumstances company went through and which now seem to be under control/over except the market price.
Could you please explain Lycos role in company’s business prospects.
Thanks.

[dgm]

What does it mean.

[dgm]

And there is no bulk deal in BCG on BSE also.

[dgm]

There has been no bulk deal in BCG on NSE today.

[dgm]

Bulk deals are off market transactions and retail share holders are not buying through bulk deals. Possibly there may be many buyers (HNIs) buying below 500000 each.
I think so. Evaluate at your end please.
Regards.

[dgm]

Board meeting for allotment of shares against preferential issue on 27.05.2020.
I noticed Lycos Swag on Lycos Site. Seems efforts to popularise lycos further have started. What does it indicate?

[dgm]

ICICI Securities and Motilal Oswal have recommended Affle.

[dgm]

Company Update on preferential issue on BSE. Everything clarified. PO is delayed only due to pandemic situation. Nothing more.

[dgm]

IT / ITES companies in Hyderabad have been allowed to open with upto 33% manpower from today only.
Let’s see. What happens now.

[dgm]

Investor updates are definitely required. However I am particurly upbeat about the status of legal issue in 3rd May presentation, wherein company stated that mutually agreed out of court settlement contract has been drafted and logistics for closing are underway (i.e having started and in progress).
This legal issue was the main reason for downfall.
Global auditor have already been engaged.
If they achieve closure of the dispute soon then what else is big hurdle.

[dgm]

NSE approval may be pending due to limited functioning of NSE office, which is in Mumbai, due to Covid 19.

[dgm]

Thanks Valuebuyer Ji.
Regards.

[dgm]

Can we say that this 305 US D Million Working Capital is deployed by the company on its own, without any financing, as they are planning for line of credit now?
That is about Rs 44/- per share. Am I wrong? Does somebody agree or disagree?
Please give your views.
Regards.

[dgm]

1. Sorry to say so but I have seen minor unintentional errors even in World Bank reports, which are edited many times before release.
2. To my view efforts of the the company with standard professional presentations can be to change market perception and find a suitable FPI for transfer of Oak stake.
3. Company tone is quite confident.

[dgm]

Marketing Outlook Presentation has been uploaded at company website also.

[Author]

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