[JackSparrow13]

To be honest, I am getting more positive every day, as share price falling. After so much fall, share is still quoting about 15PE (16.8 as per Screener.in now), which for me is very high given the standard of management communications. I also note the high volumes everyday. Also, like the incessant noise on Twitter and Moneycontrol. The management is lethargic, but is being painted like criminals with hitjob articles, resulting in lots of panic. I also think, many people bought only for sake of bonus, and are now realising the dangers of such an special situation investing strategy.

I am disappointed about shareholding fiasco, but I expect similar games to continue, till management gets a respectable share. All i wonder is, since they have bought Mediamint, can they use its cash generated to increase promoter holding in a clean manner? Crossholding is legal right ?

[JackSparrow13]

Thank you odysee for encouraging us to focus on the business, during this period.

My personal thought is that management wants price to fall now, perhaps to buy from scared retailers. For past few months, management often gets super active, when price falls – uploading ppts, clarifications etc (Remember the big clarification after the interview with ET?). I am actually interested to see how management comes out victorious from a trouble of their making. Otherwise SKR is pure crazy to sell shares after acquiring Mediamint (and close to buying Audio Company) and core business doing good. It would also be childish to run away selling shares to public at high prices (distribution), where he can easily stay at his company, and earn salary for decades, and also transition his next generation.

There is a demerger story by Joel Greenblat, when management tries to perceive a demerged company as bad intentionally to scare away people. This might be a similar strategy. Atleast from SKR, who does backdoor acquisition of LLPs to boost promoter share, simple tactics to increase promoter share (like buying from market, when few biggies will push it to upper limit) should not be expected.

-Badly biased, Sorry.

[JackSparrow13]

Brilliant Backdoor entry by promoter. This master stroke seems to have been planned long ago. This is what happens when retailers dont value their shares, inspite of PE being less than 1, for multiple years.
Btw, this is an appreciation post to promoters. Perfectly smart legal play. When retailers were wondering why promoter was not buying his shares, inspite of low price, the promoter came, fooled, and may conquer the shareholding war…

[JackSparrow13]

Deathly silence when share does well, full of wisdom and encouragement during bear attacks, the forum is powerful!

[JackSparrow13]

CNBC TV-18 is so interested in Brightcom, I am afraid they might join us as fellow investor.

[JackSparrow13]

Apologies in advance, if the above offends anyone.

[JackSparrow13]

Guys,
Please please calm down. Its no fun seeing money erode, but if you trust the company, and your portfolio allocation is ok (5% or less), just ride the bouncers. The new ball is bound to get old, and easy to bat against. Might get badly trolled for this, but “At one point, Amazon lost more than 90% of its value. But long-term investors still got rich”. If you have over allocated, think deeply. What if the next turnaround comes after 5 years? (just saying)

At one time, i had invested in a company called Usher Agro. Highly indebted, but i was counting on management to manage. Well the story had a pretty bad ending, company got liquidated (with my money in smoke). Only savior was <5% allocation. Reverse stories are also there. I hold sanjivani parenteral from 2016 at Rs. 14. Check its chart. Its all a part of long term investing.

[JackSparrow13]

Biases are hard to overcome. A lot of investors I really look upto, are having a field day laughing at Brightcom. Most of them have gleefully read the SEBI’s notice, and 5 month delay issue, and are partying so hard, they have forgotten to read company’s revert yesterday. Some investors also consider this website as a pumping platform for Brightcom (then i seriously need to pump here harder :P), and are reading every post here as a joke.

Well, then, let me reply them here.

To be fair, life is hard, so if laughing helps you mentally and physically feel better (and you haven’t got breathless laughing till now), I would urge you continue laughing.
And then read the company’s revert… and then post it below the post, where you made fun of Brightcom. and then surely find loopholes. Why such a biased coverage?

Having said above, I am not a fan of Bonus/splits (to make it “affordable”), and increase in number of retail shareholders should hardly matter to a management. This is BCG not Berkshire Hathaway, where Buffett was forced to issue a new class of shares. So, I do agree with criticism BCG is getting for it, but this is absolutely wrong time to throw in the towel, with BCG’s core business, Mediamint, and audio acquisition, having better days ahead.

But what do I know, I just wrote this post to pump Brightcom…

[JackSparrow13]

To be frank, this fall does not worry me. Even if it goes down to 10, i really would not be worried. This share has a pretty good chance to be a good dividend play in future, if Mediamints earnings are used to increase dividend payout. I have barely written anything about growth.
Obviously, my investment in this share is less than 5% of portfolio, so i can digest the volatility.
What this share has done to me, is given me confidence, that if i hold my shares long enough, i can enjoy 10-20 baggers (and one does not have to be super investor always to have a 10 bagger). This confidence will ultimately help my overall portfolio, and for it Brightcom has my vote of thanks.

Lets sail through this round of volatility folks, who knows Brightcom might show us 50-100-1000 baggers in future!

[JackSparrow13]

Just a random thought.
One of the best things, existing investors, can have a lot of doubters of the company. Their desperation to prove the company wrong
1. Forces the company clean up past sins (if committed)
2. Clarify on doubts on the company
3. Be careful of committing frauds in future.
Perhaps its good for us in long term, that so many are doubting Brightcom, especially post rally from last year.
Cheers.

[JackSparrow13]

I have rarely seen such a detailed dignified response post a hit job.
I just wanted to highlight a part of note in section “Rationale for dividend payout”.
“We are a company that has grown through acquisitions, as a result that our stand-alone parent company is relatively small, and was more in the nature of a parent company ( this is changing now, with the beefing up of standalone operations at the parent level). Our standalone revenue is at Rs 365 crore as against consolidated revenue of Rs 2855 crore, in FY 21 . Over time, we intend to increase our dividend payout, as the standalone parent starts getting to a higher size and scale.”
So, Mediamint will be consolidated in standalone operations ?

[JackSparrow13]

Saddened to see this interview. Normally, Mangalam Maloo raises for the right, but this time he seems more interested in getting cheap publicity. I do understand paying no dividend can raise a red flag. But paying low dividend cannot be a issue. Why should a promoter with low promoter holding waste money in dividend (feeding minority shareholders and government). Buyback can be best, but brightcom will not be able to afford a buyback (capital needs to allocated to growth, as well as equity size is so huge, buyback proportion will seem a joke). Not everyone can be Messiah of Investors like suppose Dr.Vijay Mallik. Trying to make paint a company as criminal, because street perceives it to be, is being fundamentally dishonest to one’s job.
Damn sure Brighcom’s rise will burn a few asses, and will be great fun, becoming rich and seeing naysayers needing tons of Burnol. May them be hit with Thousands of Thundering Typhoons, and suffer from Billions of blue blistering barnacles!
…Sorry, got a bit carried away in emotions…

[JackSparrow13]

Brightcom is now a trading stock between 150-200, around 25-35 PE, till Dec results. No need to take tension regarding 5% +ve / -ve movements, and conspiracy theories.
Cheers.

[JackSparrow13]

Hi,
There are some basic things in investing, which get missed if we discuss about a share all day/all seasons/all year long. I think a reiteration should help.
1. BCG is just a stock, we are not employees of BCG.
2. It is a seasonal business, with some strong quarters & and some weak. Stock prices will follow same sentiment. So, it had rallied in Q2 results, will start rallying after a few days (or maybe end Jan) in anticipation of good Q3 results. Then it may fall to a reasonable PE perhaps (10-15) during Q1 & Q4 (Simple guesswork, like air conditioner share rally in summer, agricultural shares would rally if there is good monsoon).
3. BCG is currently at 20+ ROCE, so ideally should trade at 20+ PE all year around. But this will happen a few years later. Currently, it is a viewed as a trader’s share which was trading at <1PE (cheap to buy) from where it rallied to 30+ PE (so sell).
4. Till now, I have not talked about any acquisition etc, other triggers, which will fund growth.
5. A very simple question needs to asked – Do I trust the management or not? If yes, give them 5 years to execute their vision. If no, sell and be happy.
6. Portfolio allocation discipline is must. If while buying Brightcom was 20% of portfolio, and it has become a 15 bagger. You need to be honest to yourself about your ability to accept volatility. Or you track the business so closely, you should be able to run before others figure something is going wrong.
7. All I am saying, that since many have been sitting on huge returns, anxiety is normal seeing huge volatility. You need to decide if you can stomach volatility and sleep peacefully at night. There is no shame in selling or paring down your portfolio, but reasons need to be more personal, rather than some imaginary fake business shit.
8. Finally, learning from my own investment mistake, the urge to sell is highest when a share which has stagnated starts rising. But this is often the start of a business’s growth phase after long. Bought CDSL around 200, sold at 750, thinking “market is cyclical”, so CDSL has to fall soon. This “will fall in future” share is now trading at Rs. 1500+ Sigh.

[JackSparrow13]

Hi,
Invested since 2014
2 things ( contrarion views perhaps) –
1. Brightcom is a stock which will divide many, especially if one goes through the process of looking at looking at equity size, promoter holding, pledged. But every metric has a story behind it, as highlighted by seniors here multiple times. I sometimes feel Brightcom is as unloved in India, as Amazon was in US in its initial years. There is only 1 way to remain invested here perhaps. Either you believe the management, or you dont.
2. I have personally benefitted a lot from Valuepikr, since there the focus is on uncovering the negatives in as passionate a manner, as telling the company story. Just take any random share (which has 100+ posts) in Valuepikr. Pretty sure you will be benefitted. I personally also follow the portfolio threads of a few boarders, to understand their viewpoints while buying, selling shares. Obviously trolls can be everywhere.

More we learn, better for us.
Both this website and Valuepikr, have guided and helped me a lot.

[JackSparrow13]

Am a very small youtuber myself, who tries to make bad videos of shares.
Youtube is normally a bad medium for knowing about shares, unless youtuber is of very high quality (like say SOIC).
If one really wants to know about Brightcom, stick to this forum.
For other shares, 1st choice should be Valuepikr.
MMB is trash, It was a great forum, almost a decade earlier.

[JackSparrow13]

Happy post listening to the Concall. The investor questions were pretty pointed and hard hitting (from Daum resolution, importance of lycos, low dividends, promoter shareholding “falling” over 2 quarters, status on both India & US acquisition, why they were taking “so long” Auditor qualifications over overseas revenue, why no concall notes from 2016, even why preference shares were raised at low price, priority between organic & inorganic growth, further dilution, attrition, impact if Android applies privacy rules like Apple, impact of Googles rules,as well as suggestions like splitting the total sales by different businesses). The management response were pretty realistic, I felt. Corporate world does not run as fast as an investor’s imagination, unfortunately. Need to give management at least 3 years, to achieve the ambitions they are currently articulating. But, atleast Suresh Reddy has clear ambitions of growth, improvement of ROE & FCF. Patience is needed here, in spite of prices wildly rising.

[JackSparrow13]

First Post here.
Invested since 2014, when there was a big rally and fall.

I would like to thank Board Seniors, for freely sharing their knowledge, This proved critical this year, especially when share price started crossing my purchase price, and started hitting upper circuits for breakfast at 9.15 am. Did not sell my quantity.

Coming to the result discussion, I found 3 aspects in management commentary.
1.” *Brightcom Media, the brand operating under our Israeli subsidiary OMS (Online Media Solutions), has been the epicentre of improvement in traffic management, contributing hugely to improving the company’s profitability. (EY is the statutory auditor of OMS). (This entity contributes over 40% of our overall business)”
Loved the small referance to EY in this line. Nice punch to trollers, who think all foreign income is imagination. I always used to wonder if foreign income is day dream, there was no reason for company to show slow growth over last 3-5 years.

2.I find it rare for management (in general) to set goals in quarterly management updates (normally they are self-congratulatory – to influence shareholder opinion)
“Our focus is singularly on creating significant shareholder value, by constantly improving Free Cash generation, and increasing Return on Equity (RoE). We remain deeply committed to the highest & improving standards of governance, accounting and transparency in our operations, for the benefit of all stakeholders. ”

3. Setting target on FCF
“Based on the revenues and profits growth, the company is targeting a Free Cash Flow ( FCF) of about Rs 250 crores by the end of March 2022. And looking at an additional 250 crores by the end of June 2022. ”

A couple of my other thoughts.
1. This quarterly result is perhaps devoid of any impact of any acquired/ to be acquired companie(s). So, if/when consolidated, in future, the future results may be even more stunning.
2.One of the key reasons for market to distrust Brightcom in past was low/neglible dividends(Show me the Cash!). Perhaps after acquisition of Indian company, the dividend payout might be increased. This may also signal better corporate governance (management sharing gains with shareholders).

[Author]

Posts