[nitin_asce]

Thanks valurbuyer001 ji. I think Suresh is sharing bits and pieces of future.
However if some senior from our forum can put together this puzzle and potential impact on bcg, it will be great for all of us.

[nitin_asce]

Going by the text from above pubmatic was growing through internal accruels but raised money now since the opportunity is huge now to corona.

I think mr Reddy also gave some flavour in one of the concalls. So is mr Reddy trying to solve issues fast by raising funds.

I think we should wait for some clarification from management and that will happen once our group meets mr Reddy.

[nitin_asce]

@logan. I just saw some news on pubmatic.
https://www.google.com/amp/s/www.cnbc.com/amp/2020/12/09/pubmatic-an-ad-tech-company-pops-nearly-50percent-on-debut-.html
“But we think the opportunity is so much bigger now than we had imagined at the beginning of the year, in part due to the coronavirus pandemic,” he said. “We’re spending more time on the internet. We’re doing things for the first time on the internet that we’ve never done before … and so that I think significantly expands the opportunity going forward. And so we want to be well capitalized and well positioned to take advantage of that opportunity.”

[nitin_asce]

@logan the annual report has also come few days back. Can you put your views on the same please.

[nitin_asce]

Is this issue related to bringing a stable investor into bcg as promised by Mr Reddy.

[nitin_asce]

I think few years down the line BCG will be a perfect case study where deep value was ignored due to lot of noise.

[nitin_asce]

I think the share price can start upmove anytime from now just we have to be patient.
1) axis part payment done. I guess it will now be resolved in few weeks time.
2) after axis I expect to see LoC and then daum settlement

I think the biggest positive from this year which I could take is management willingness to close old issues. From that perspective if we see all issues will be closed by q4 or q1 of next year, all will be well.

But there is still a possibility we have to wait for few more quarters to see share price growth even after closure of daum. However I am very excited by the development s in bcg this year.

[nitin_asce]

@tanv151 can you post the link of latest nclt update document please.

[nitin_asce]

@logan I think we are ignoring one of the big positive development s. If I heard correctly because voice was breaking, Mr Reddy said nclt is different and settlement is a parallel process which is ongoing with axis. Even some payments were done. This is a huge positive as few weeks back the update was we are yet to hear from axis as told to our forum representative s.

One question, Mr Reddy said some additional costs were incurred in this quarter. Do we have any idea how much is those extra costs.

[nitin_asce]

I have a different thought this time. My primary question to Mr Reddy would be to explain the reason why BCG has not been able to show the growth which other digital marketing companies are showing. What are management plans to catch up on the growth front as compared to other competitors.

I think if growth returns then share price will automatically recover.

[nitin_asce]

@Rathi_b Thank you very much for the update. I think it gives immense confidence that some members have seen the documents and it’s ok if confidentiality needs to be maintained.
This clears I think almost all of our doubts and the ups and downs we are seeing are just normal things which happen during course of business. Off course we did have more share share if downs than ups.

I think if Mr Reddy is genuine (shows from his intent in meeting the retail investors twice and taking time out) then the remaining problems will go away in few quarters and hopefully stock market will reward its shareholders.

[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.

[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]

@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]

I think game is pretty simple. If the market cap goes high then axis and daum will not settle for less money. I am guessing unless the two issues are settled the share price will not go up.

Management has lot in their hands and I think it will be revealed when all issues are settled.

[nitin_asce]

@logan I think this issue cropped up since axis could see the money from rights issue. Going by the same logic I don’t expect LOC to get approved before Axis is settled or BCG might be ready to pay full loan amount which looks unlikely.

[nitin_asce]

I think we all are losing patience due to long non performance of our investment s. However I think going by history, whatever claims skr makes we know it will take much longer to complete. However good part is some issues are behind our back and only couple of them like axis, loc and daum etc is pending. I do expect to see some progress in these issues.

However growth is very important and we have seen some growth in latest quarterly results. So if bcg continues on growth part, then everybody will notice the share even if the 3 remaining issues are not resolved.

I am just reading in between the lines from latest concall that due to excitement skr gave some forward looking statements about growth at the end of concall where he mentioned ad traffic has grown 3 times approx.

So my suggestion would be track growth part minutely and give some time for remaining 3 issues. We need to also think that he was able to close some issues (maybe we don’t agree with the resolution) but at least those issues are behind us.

[nitin_asce]

The situation is pretty clear and let me explain. OTS are generally approved only when the repayment capacity of the company is not there. So bank has to agree on OTS and otherwise auction the mortgaged properties. But generally you don’t get the requisite amount due to people bidding lower than market price due to legal issues involved.
Now here SKR collected rights amount approximately 30 crores and the it’s deadline has passed. Now the loan amount is around 35 crore and settlement amount is around 10 crore. Now bank sees that right issue amount and thinks that bcg has capacity to pay. If anybody approves lower amount then he may have to face corruption charges. So they might want court to decide on the amount.

This may be one of the theories. Otherwise SKR might also be delaying the settlement.

[nitin_asce]

@saul Goodman I noted one very interesting thing from your post. BCG payables are just 10% of receivables whereas crite it is around 80-85%. Do you think that bcg used profit from last few years to reduce payables.

[nitin_asce]

Sending questions is a good initiative. Last time also SKR in his initial address mentioned that they received some queries and he tried to answer some.

He may not give full info as desired by us but still some information is better than no information.

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