[odysee]

@Logan, ego does not permit naysayers to acknowledge their deficiencies in objective appreciation of reality even when it stares them in the face.
A glass half-full will always remain so for petty minded people irrespective of the increase in the size of the vessel.
The remarkable performance by Mr Reddy and his team needs to be applauded by all and sundry, and all of us who have kept our faith in the company and the management over these many years need a quiet moment to reflect and celebrate this vindication of our conviction.
You have played a major role in the maintenance of the faith of the members on this forum by providing such in-depth data and analysis and logical viewpoints, and I am convinced that all my fellow members will join me in expressing my(our) appreciation of your immense contribution to the deeper understanding and belief in this grossly underestimated and unrecognised new age enterprise, and the very smart people behind it.

[odysee]

Thank you @Logan for providing the latest on market movement of the other well known players in the ad-tech field.
Would I be correct in assuming that the current market capitalisation of most, based on multiples of earnings per share or revenue, is still very substantial, and well beyond what BCG commands today?
You did mention supply chain issues for Magnite, but I presume those would get resolved going forward. In the interim, would not the competition exploit that opportunity if the demand is still intact or growing?
Or is that too simplistic an assumption?
Valuation and market price, unless at absurd levels, would tend to follow the business and growth, and the revenue and earnings, as you have pointed out many times earlier.
Closer to home, Affle continues to show growth ( albeit with a different business model and market ) and commands a relatively very high valuation.
BCG management has, for the first time ever, given a guidance that is very impressive in terms of growth in revenue and earnings, which would be keenly tracked. Bearing in mind the experience and expertise and knowledge of the business domain that Mr Reddy and his team operate in, it would indicate that opportunities in the ad-tech field ,through varied mediums, abound and will continue to expand as traditional and new businesses adopt and adapt to the digital world.
Would be very grateful for your thoughts and I apologise for my lack of expertise in the ad-tech domain.

[odysee]

Good positive points made by @vgsatwork in #12818.
I would submit though, that it’s not good enough to meet 75 to 80% of the guidance given, considering it was given well into the 2nd quarter.
They would have to meet it or beat it. Cannot afford to disappoint the market on that front.
As far as the approval from the exchanges for the Preferential allotment is concerned, the timing thereof is not in the management’s hands. The shareholders’ approval was only at the end of the 3rd week of October.
The exchanges may well take their own sweet time if some clarifications are sought and disposed of at a pace not to our liking.
Fingers crossed.

[odysee]

BM is on Saturday the 13th of November

[odysee]

14th November is a Sunday

[odysee]

@Admin, you beat me to the draw in thanking @ Logan. But I fully endorse your comments, and commend you for your success in keeping the flock motivated and together.

[odysee]

I think that the issues of negativity and scare-mongering hyped up by the self-important petty minded negative boarders are pretty much done and dusted by now @Logan.
Pointless expending energy on irrelevant boarders who have never understood the importance and depth of your knowledge and contribution to the investing community during the last few trying years.
But the genie is truly out of the bottle now, and no amount of nonsensical naysaying comments are going to put this back in now.
The rapid and exciting developments in the last few months have been breathtaking, and the promise of BCG finally attaining international recognition and stature is not just a dream anymore.
You believed and you made us all believe too. Methodically, systematically, and with painstaking research and study.
Thank you.

[odysee]

‘BCG’ and ‘GROWTH’.
About time they established a relationship and became friends. We will cheer them on.

[odysee]

I suppose we have to wait for the next conference call to get some bearings on the current performance.
The last conference call was pretty upbeat and by all indications that applied to the June 21 quarter as well. At least as far as expectations went. So we need to understand from the management as to what this slip between the cup and lip was.

[odysee]

@vgsatwork, the management did not have that 95 crore to utilise in 20-21.
The Muskaan preferential money was frozen till March 2021 because of the Axis Bank settlement. The PW money only came in early 2021.
But yes, the company must show healthy growth in the top line from now on, as most past issues are resolved and the cash flow position has improved.

[odysee]

@vgsatwork, thank you for sharing your very positive and sensible approach to research and conviction based investing (not trading).
For the record, my brief comments contained in the post referred to by you, were singularly addressing the small retail investor who may not have had the capacity or conviction to hold for the really long term.
Quite a few of us on this forum have stayed invested for 6 to 8 years. But if you have been keeping track of the total number of small retail shareholders over the years, the dramatic increase in numbers has taken place only in the last 2 years.
An entry in single digits, and a very extravagant and almost heaven-sent ‘exit’ opportunity giving almost obscene returns would be tempting for many newer entrants. But the kind of short term targets being touted on all chats was both misleading and unrealistic.
And, of-course, the first meaningful correction created turmoil in the minds of many newer investors who rued missing the chance to sell at the peak. But that’s human nature, and for every 1 long term investor, there may well be at-least a 100 short term punters.
But over time, as one gains experience in the market, and gain and pain is absorbed and understood, then the wisdom of ‘long term investing’ with belief and conviction based on fundamentals, so well articulated in your post, will be better understood by the relatively newer retail investors.

[odysee]

@vgsatwork, from 56 to 26 would be a cruel turn of events for the retail investor, particularly for one who has waited for 6 to 7 years to get justice on market recognition and valuation.
The opportunity to sell around 50 was possibly lost because of fanciful short term targets being proclaimed on various investor group chats.
But the market, as mentioned earlier, is unforgiving and ruthless.
And the operator or operators will exploit the loss of momentum and sentiment to the fullest.
I expected better support from the promoter group and the larger stakeholders.
But the longer term prospects for BCG are still very encouraging, and if the implementation of various key objectives as outlined is done in a timely manner, then patience will be well rewarded.

[odysee]

Thank you very much @Logan for your very lucid and thought provoking response.
The 2019-20 Annual Accounts were surprisingly more heartening and professionally prepared and presented as you have pointed out, but relative to preceding years’ accounts only. The pleas ,for better and more meaningful disclosure, made during a number of conference calls have yet to be fully addressed. I find this a bit surprising, considering the momentum that has picked up lately in presenting the newly energised debt-free BCG as a consistently performing new-age international ad-tech company, with publicly articulated ambitions for growth through acquisitions as well organically.
Mr Reddy has made no secret of his desire to see the company commanding due recognition by the market, and deservedly so, despite the troubled past few years of coping with legacy issues as well as some deficiency in proper communication and timely handling of pending problems.
But given the nature of the industry, and the widely varying business models as you have pointed out, it would be imperative for BCG to present a balance sheet and a set of Accounts, that would be far more informative (without compromising on business ‘secrets’ and confidentiality) to enable a wider public and institutional participation.
Balance Sheets are the not easiest of things to read and comprehend at the best of times, even by professionals, and in a not fully understood, varying business model industry, it would be of critical importance for the BCG management to act on this now.
With fund raising on, acquisition on the cards, a possible consolidation and partial dilution of that consolidated lot of subsidiaries ( read listing on an international stock exchange) etc, the ambitions and prospects are exciting if executed with care and transparency.

[odysee]

I have a question @Logan, if you would be kind enough to respond.
For an analyst in India, or a research house feeding a fund manager, would it be relatively more difficult to understand the balance sheet and profit and loss account of BCG which has multiple overseas subsidiaries that account for the bulk of turnover/revenue and profits, as opposed to a study of a peer company like TTD or Pubmatic?
Or would a study and understanding of the business, per se, be equally challenging irrespective of the entities named.
Many thanks in advance.

[odysee]

Thank you @drjaysee. What an excellent summarisation and presentation of data and facts pertaining to BCG.
A special thanks to @Logan who provided so much material after painstaking study and research that was put up on this forum for us to absorb that helped solidify our resolve and conviction to stay invested over these many past years.
Many other members have provided valuable inputs, and I would like to acknowledge their immense contribution to ‘the cause’ ,without having to name them individually.
Thank you, Admin, for nurturing and keeping this flock together.

[odysee]

@palash231, sorry, saw your attachment later.

[odysee]

LOI signed, as per intimation to the stock exchanges, for acquisition of a digital marketing services company with a pretty large employee strength-1100. Let us see how this great news plays out.

[odysee]

Anyone who has invested in BCG has done so of their own accord, and after due diligence conducted by himself or herself. Each individual’s capacity may be different in terms of the amount invested, and the level of conviction and faith one reposes in the company. Large holdings or small, no one is forced to buy or hold on to their investment.
Now that one has seen the management take pro-active steps to bring about a positive change in the perception of the investing community, after having dealt with most of the troublesome issues of earlier years , and becoming debt-free, it is time we on this forum applaud the current actions and proposals being put forth by Mr Reddy and his team.
We also must take note of the fact that this is the first time in the history of this company, that the face of a subsidiary company ( and that too the largest and most profitable 100% owned subsidiary), namely Online Media Solutions, was exposed and presented to the public via a Webinar that was essentially meant for their client group entities; but we, the public, got an opportunity to listen in and observe. This, for me at-least, along with the introduction of ESOPS, is a true game changer, and heralds a new beginning in the way business will be handled henceforth.
Retail investors on this forum,, who continue to harbour doubts about the integrity of the management and the sanctity of the business of the subsidiaries, after the latest developments, would be best advised to seek investment opportunities elsewhere.

[odysee]

@jagasworld, this is just capitalisation of reserves. And the book value ( and market price)get adjusted downward accordingly.
But in India, bonus shares hold a different meaning and are generally welcomed by shareholders, and post bonus the market price tends to move up irrespective of the book value adjustment.
The moot point would be the cut-off date, and whether the PWs get converted to equity after full payment prior to that, and if they qualify for the bonus shares too. Not clear how this will play out. It may well be only for the shares issued to date which means the convertible preferential warrant holders miss out. Just a point for consideration.

[odysee]

The announcement of consideration of dividend along with the audited results on 28th June 2021 is very good news indeed @kris. But we have to be realistic in our expectations.
The face value is Rs.2/- per share. Last year 2.5% dividend was declared, equivalent to 5 paise per share. I very much doubt it could jump from 2.5% to 100 or 150% ( Rs 2 or 3 per share). Unrealistic to expect a 100 crore plus dividend payout when an acquisition is on the cards and Daum still needs to be paid off.
A prudent ( though not conservative ) but consistent dividend policy would be better appreciated, particularly with a much larger paid-up capital post the conversion of the warrants ( whenever that happens).
I just hope that the much talked about Line of Credit actually materialises to enable the company to rapidly ramp up its existing and new businesses.

[Author]

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