[jmathew]

• Pledged shares in sep 2019 was 11.8 crore
• Pleaded shares in sep 2020 is 5.95 cores (huge positive)
• We know OMS is a fully owned subsidiary of BCG and generating around 38 % revenue and audited by E & Y.
• We know AXIS closure expected at any time
• We know LOC approval is in the final stage along with the consolidation of 12 subsidiaries
• Only two major issues are pending Axis and LOC ( Daum will be closed after LOC).
• G group is holding around 15 Percentage of shares
• OAK exited and no more selling pressure for OAK
Dears Just relax and wait for the story to unfold.

[jmathew]

I believe we are very close to a huge up move. Axis will be closed at any time. We know BCG’s book is clean and LOC will be the answer to all those who are doubting profits and sales. I expect all the outstanding issues will be resolved before the Q2 result and BCG will trade near to the book value by Dec 2020 and pe x 10 by May 2021. Time to add more shares.

[jmathew]

Logan Sir, can you please share your view on the below points?
1.Even though promotors plus top 13 investors/groups hold around 90 percent of the stock why BCG is still trading below 1 p/e.
2.Is there someone controlling the price, as they want to corner more shares before some biggies or DII enter?
3. On the last couple of notification, we have noticed CS signature, any specific reason for it?
4. Retail investors have increased by more than 25 percent but total holding decreased by 5 percentage any specific reason for this.

Note: I entered BCG when it was trading at 19 and my average buying price is rs 6 now. I very much believe BCG will find its fair value in the coming months but the current price action is a big concern.

[jmathew]

Dears, is there any kind of well-planned price manipulation going on? If we look into the June shp, 51 percentage is with top 13 investors/groups (including NRI, bodies, and cooperates). This is without oak holding during that time. Also, from May to June the number of retail investors increased from around 30 K to 41 K but the percentage of the holding decreased from 4.7cr to 4.3 Cr. Please share your views.

[jmathew]

Last year August BCG was trading around Rs 3 to 3.5 range with lots of uncertainties. There was no clarify on OAK, Loan to Indian Banks, Pledge shares, Daum settlement and Subsidiaries.
Now we know that
1. OAK exited. (let us wait for official confirmation from the MGT)
2. Loans to Indian Banks (we know that only Axis is pending now and it will be closed soon). I believe Axis is a done deal.
3. Pledge shares are reduced from 59 percentage (in Sep 2019) to 33 or less as per June 30, 2020 SHP and more will be released once Axis is closed.
4. Daum closure (last stage as per the company’s discloser to the exchange). I believe it is a done deal.
5. US subsidiaries consolidation is done with the help BDO world’s 6th largest auditing firm.
6. Israeli subsidiary is fully audited by E & Y (around 38 percentage of the total income)
7. LOC is approved and due diligence process is underway as per the last con call. Once LOC is available 20 to 30 % more growth is expected.
8. New investors please go though the last CC. https://finance.yahoo.com/news/edited-transcript-lycos-nse-earnings-211340403.html
9. BCG is trading @ pe 1, where the average industry pe is 23
10. Book value is 55 plus.
11. Total income is around 2800 cr and profit is around 400cr
12. BCG is highly highly undervalued (as per my view)
13. Please do your research before buying or selling BCG.

[jmathew]

Affle is trading @2170, Consolidated book value is 90 and eps is Rs.26. If they decide to split the share to FV 2 then the price will be around Rs 430( eps 5.2 and book value 18).
BCG book value is Rs 55, eps 8.67, and trading below its eps.
BCG is highly undervalued and I believe LOC will be the game changer and it will take the price above the book value. SKR needs to close the axis issue and Daum asap.

[jmathew]

Dear Just my views are below.
1. Listen and believe in the updates from the Management.
2. LOC will give the answer to all doubts about BCG. Many investors are thinking whether the income/profit/EPS is real or fake.
3. Once LOC is done, it will be next to impossible to enter into BCG before it reaches its fair value
4. LOC is expected at any time, hopefully in this quarter.
5. There is nothing worry much about AXIS or Daum, it is a done deal. (of course, it is getting delayed beyond our expectation)
6. Expect a minimum of 15 % more growth (Q on Q ) in Q3 and Q4.
7. Lyco’s income and profit will be added once Daum is settled.
8. Marjory of Pledge share will be released once the AXIS is settled.
9. Book value is around Rs 60 and will increase once daum is settled.
10. Imagine what will be the price of BCG in May 2021 (with all the issues are resolved) and income over 3000 CR and EPS over Rs.10.
11. Those who believe in BCG story please stay invested at least for the next 10 months.

[jmathew]

Global Employees 462 and PAT 440 cr as per yesterday’s notification to exchange. That means on average each employee is generating a profit of nearly 1 CR. Looks great. I hope BCG will get LOC soon. LOC will take BCG into a totally different orbit. price should move towards the book value.

[jmathew]

Below something to note.
BCG BV in, 2016 – rs 43, 2017 – rs 51, 2018 – rs 59 and rs 2019 – rs 63.

[jmathew]

Dears please find few details related to latest SHP (June 2020)

1. Promotes 36.72 %
2. OAK – 6.57 %
3. PRAVEEN KHURANA – 1.08 % (you may refer to the latest conference call for
his stand on BCG). His name was not there in Q1 2019 SHP.
4. Non-Resident Indian (NRI) – 11.20 (increased from 6.91 in Q1 2018)
5. PRABHAKAR REDDY NARAPAREDDY – 1.09 % (Maybe from promotor’s team) his name
was also not there in the old shp
6. PRIYA PRAKASH – 3.74 % (every quarter holding is increasing. )
7. Bodies Corporate – 12.69 % (256 investors, holding increased from the last shp)
8. AKG FINVEST PRIVATE LTD – 3.75 % (ASHOK KUMAR GOENKA, /NAKUL GOENKA
directors)
9. GOENKA SECURITIES – 2.52 % (ASHOK KUMAR GOENKA/NAKUL GOENKA directors)
10. UNO METALS LTD – 3.82 % (RAJESH GOENKA director)
11. EDELWEISS CUSTODIAL – Last shp they were holding 1.05 %. Not showing now, maybe due to the new PO shares and their holding is less than 1 % now.
12. Foreign Portfolio Investors – 0.23% (a new one, was not there in Q2 SHP)
13. Clearing Members–0.45%
14. Trusts 0.29 %
15. individual share capital up to Rs. 2 Lacs (30505 investors) – 9.27 %

[jmathew]

Dears, Please find the link for 2019 annual report.
https://www.bseindia.com/bseplus/AnnualReport/532368/5323680319.pdf
BCG is not included in the revenue of Lycose inc. (page no.5)
page no.34 more workforce force for AL And ML
shareholding very interesting. ( page no.39)

All, please go through this whenever you get time.

Attachments:

1. 5323680319-1.pdf

[jmathew]

BCG’s eps is Rs 9.24 (FV 2 ) and Affle eps is Rs.25.34 (FV 10).
If we split Affle FV to Rs 2 then EPS per share will be rs 5.07 and the share price is 1550/5=Rs 310.
So, BCG with eps 9.24 trading @ 6.30 and Affle with eps 5.07 trading @ rs.310.
BCG is present in many countries and is much bigger than Affle.
Can Affle share price double from here in a year?
Can BCG share price increase to 15x – 20x in a year, to its fair value?
I expect smart investors including some biggies from Affle will move to BCG soon and will be able to make multifold returns.

[jmathew]

Thanks for correcting me. You are absolutely right.

[jmathew]

BCG’s eps is Rs 9.24 (FV 2) and Affle eps is Rs.25.34 (FV 10). If we split Affle FV to Rs 2 then EPS per share will be 6.35 and the share price is 1550/5=Rs 310. So, BCG with eps 9.24 trading @ 6.30 and Affle with eps 6.35 trading at rs.310.BCG is present in many countries and much bigger than Affle. Bcg’s next stop will be at its book value subjected to the news flow and closing of the pending issues, I confident that they will close the issues soon. I expect investors will shift from Affle to BCG soon and will be able to make multifold returns.

[jmathew]

https://simplywall.st/stocks/in/media/bse-532368/brightcom-group-shares

Trading below 94% of the fair value..Then what is the minimum fair value..market will decide it in coming months..

[jmathew]

From CC Feb 2020
Then Oak shares. Yes, there’s been a question about shares owned by one of the private equity firms who had invested in the company in 2010. I know their fund is closing, and what do we do? So we have been working very closely with them. We have identified a buyer for that, so we should be able to help close that. So I’m making sure that those shares don’t come into the market. This is another big effort that has been — that we have been working on from the corporate side.

Let hope that shares will be transferred to a new investor with a premium price asap.

What do they mean by corporate side?

[jmathew]

News on March 16, 2016.
Shares of Lycos Internet (earlier known as Ybrant Digital (before that it was LGS Global)) are locked at 20 percent lower circuit at Rs 19.05 (fresh 52-week low) on Wednesday after its US subsidiary filed for bankruptcy protection.

Below some interesting facts.
BCG BV in, 2016 – rs 43, 2017 – rs 51, 2018 – rs 59 and rs 2019 – rs 63.
This year it will be around Rs. 67, book value has increased more than 75 percent during the last 4 years.
Expect the share to go up above Rs 20 as soon as Daum closer news is out. It is a done deal.
All issues will be sorted out and LOC will be ready before Dec 2020 and the share will trade above rs 70 by end of this year. This is my view and belief.
Cheers.

[jmathew]

@SRD Great. PO approved, so Axis loan ( less than 9C cr) will be closed very soon. Let us safely assume before June 30th, 2020
Daum closer at any time from now again let us safely say by June 30th, 2020
The result may by end of this month or maximum By June 15th
BDO report consolidation Maybe along with result or maximum by June 30th.
LOC, 4 to 6 months after the BDO report.
OAK exists – is there any time frame for this? if not why they should exit. They will be looking for their minimum investment price that is around Rs 40 per share.
NYSE listing – That is a long story maybe after we hit rs 300 plus ( I think 4 $ is the minimum list price + tones of prerequisites)
Divided – My be by September 2021.
Cheers to All long team investors. Don’t sell a single share. We will see continuous UC’s from here until we reach the minimum fare value that is the book value of 68 Plus.

[jmathew]

Cheers

The BSE Limited
P. J. Towers, 25th Floor,
Dalal Street, MUMBAI – 400001.
Scrip Code: 532368
The National Stock Exchange of India Ltd.
Exchange Plaza, Bandra Kurla Complex,
Bandra (E), Mumbai-400051.
Symbol: BCG
Dear Madam/Sir,
Sub: In-Principle Approval for Preferential Issue.
This is to inform you that we have received the in-principle approval from NSE, today (May 13,
2020) towards the allotment of 3,14,00,000 equity shares through Preferential Issue as per SEBI
(ICDR) Regulations, 2018. The Company is working on the next steps to complete the preferential
allotment.
This is for your information only.
Thanking you.
Yours faithfully,
for BRIGHTCOM GROUP LIMITED

[jmathew]

If we set aside Axis loan, the remining major outstanding issues are
1. PO, some portion of the money may go for Axis bank loan closing
2. Another portion may go for Duam initial payment (just my view)
3. Consolidating 12 entities under one US subsidiary by BDO Global. (may be by end of this month or by June). They may announce this only after Daum closer
4. OAK share – As per my thinking they already have an investor who agreed to purchase the share at a pre agreed price. May be above Rs 40. This may also happen after Daum closer. Question is there any timeframe for OAK ?
5. Then finally LOC after 4 to 5 months of BDO report.
So, I think PO and Daum closer is the need of the hour now. Till that happen share may trade between rs 4 to 6.

[Author]

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