[odysee]

The trust deficit just got bigger!

[odysee]

@Diana Horton, you are entitled to believe otherwise that the preferential allotment funds have mysteriously disappeared, or there is a greater story of mischief here. It’s possible that I am mistaken, but my understanding is that since the actual final amount due to Axis was not agreed upon after BCG had defaulted on the OTS, Axis managed to get a stay order on these funds.
But why quibble over this at this point. Maybe it is an orchestrated drama. Who knows? You are definitely better informed than me on BCG and its management. The floor is yours.

[odysee]

@Diana Horton, the amount raised by issue of shares on a preferential basis, was a little above Rs 33 crore.
This sum has been frozen by the NCLT on a plea by Axis Bank, that these funds cannot be utilised for any other business or activity of the company till such time as the Axis claim is settled.
I trust my information on this subject is accurate.

[odysee]

The huge expectations and excitement built up last year on the likelihood of substantially enhanced revenues because of the US elections and the subsequent holiday season have been totally belied.
The expectation was even more as Mr Reddy had himself expressed his pleasant surprise at the immense growth in the digital advertising space they were witnessing , and which was borne out by the results being declared by other companies in this field of business.
Closer to home, Affle India and Route Mobile and Tanla Solutions, have excelled and shown commendable and outstanding growth in revenue and profits, and been handsomely rewarded by the markets.
What excuse now for BCG? Flat revenues and profits, quarter after quarter, and yet , in every conference call, these are described by the management as “excellent “. Really???
If SKR spent more time in business management and strategy in enhancing growth and earnings rather than the perceived shenanigans in stock price manipulation, the company and the promoters and the shareholders would be in a much better and happier place.
It is a shame that a technocrat of such immense skill has chosen to expend his energy on consistently enhancing shareholder misery and dissatisfaction, rather than value.

[odysee]

Dear @ Diana Horton, I have been an admirer and follower of yours for a long time and have always appreciated your balanced comments on BCG.
However, I am puzzled by by your current cynicism and, in particular, by your cynical comments on the Oak exit apart from your sustained unhappiness ( although shared by me) on the preferential warrants.
We are all invested in this company because of our faith and belief in the business of this company, and the future prospects and opportunities that lie ahead. We are also invested in the management of this conglomerate, for better or worse, and we retail investors hope to ride on the shoulders of this management to benefit in terms of an enhanced market value of our investment.
We all have a major grouse on the relatively poor corporate governance displayed by the the same technically competent management, but at the same we are relying on them to deliver ‘big time’ on achieving the realistic market value of the stock we all own.
We are also unhappy with the the whole drama surrounding the preferential warrants issue, but at the end of the day, if the outcome results in the company getting the much desired funds, the promoters getting to increase their stake and the outstanding liabilities being cleared, apart from achieving the desperately required growth in this very promising digital space, then why despair at this point of time?
We look to you to infuse confidence and trust and hope in all retail shareholders, as you have done so may times in the past. That does not mean that criticism, where it is due, should not be articulated. It must, because the management must never take the small retail shareholder for granted. This is particularly so in the case of a public listed company.
Unfortunately, Mr Reddy displays a singular lack of appreciation for that reality, and consequently the lack of will to keep his shareholders happy.
It’s about time that these games and manipulative activities are terminated, and realistic price discovery commences.

[odysee]

Sterling performance by Affle India. 60% growth in revenue. Other parameters also excellent. Where does BCG go from here? We have had a relatively flat performance in the last many quarters, with strained net positive cash flows. Outlook also very encouraging as per management comments fo Affle and their space of business.

[odysee]

Dividend received.

[odysee]

Sorry-“as to why…”

[odysee]

And whilst we wait for your considered response to @sobha’s query, would you (@Diana Horton) also kindly give your opinion as why any investor would want to stay invested in a company when he or she believes that the promoter is fraudulent?

[odysee]

Thank you @Logan for the recap posts.
The tone, tenor, content and consistency were pretty much in evidence..in those earlier posts. And did provide a stable platform of reassurance for many of the longer term investors on the forum.
I trust that the very recent expressions of some angst and frustration by well respected forum members will be short lived, and the debates, discussions and exchanges can resume in a mutually productive manner.
Grateful, as always, for your inputs.

[odysee]

As exhaustion sets in, I would dare to speculate that the end game is very close, and in the event of the warrants approval coming through, some sense of buoyancy will filter through to the markets too, and the process of easing of the stress and frustration will commence at a welcome pace. This can be the only obvious conclusion arising from @Diana Horton’s comments in the above posts.

[odysee]

Than it would stand to reason @Diana Horton, that once the warrant approval comes through, and they are subsequently issued, there is nothing to hold back the BCG stock price. And we can then see a sustained rise in the stock price as there would be no market maker or hand feeding that market maker as the objective would have been realised. Would that be a realistic assumption?

[odysee]

So @Diana Horton, what rationale can you provide for the stock price being where it is? Really keen to get your perspective as I have followed your posts carefully and diligently in earlier days.

[odysee]

With respect @Raj, if all issues had been resolved earlier, we probably would not have had the opportunity of much deeper learning about the business and working of adtech/digital advertising, and the history and working of other companies in the same domain. It is only during this , at times, frustrating period of waiting that through various discussions, presentation of data, sharing of information and knowledge, that we are better informed and more confident about our investment in BCG. My apologies, if my viewpoint is at odds with the thought that discussions on this forum are useless until all pending matters as articulated by SKR stand resolved.

[odysee]

@drjaysee, the article is too shallow and does not indicate that any meaningful study in depth has been done of BCG or the industry it operates in.
Comments and analysis based on simplistic ratios provide no guide to serious potential investors.
Thanks for the link though.
I am a bit confused on the term used by them of ‘statutory earnings’.

[odysee]

@PBB, reference your post #10302, the buy back would entail the company paying for the shares and a reduction in capital.
The open market purchase would be from personal funds of the buyer, whether a promoter or otherwise.

[odysee]

@buffet, the buy back scenario appears unlikely. Even assuming 20% of the capital with retailers, that comprises about 17 crore shares ( capital- post warrants conversion – 85 crore shares of Rs 2 each).
A buy back at even Rs 15 per share would cost them Rs 255 crore. Assuming all retailers succumbed.
Would you sell at Rs 15? Or even at Rs 20?
Unlikely. As the perceived intrinsic value is significantly higher.
Apart from bringing in the much needed cash in the company for growth/possible acquisition/ settlement of dues etc. , I would speculate that the new shares would eventually end up with some big investors and the promoters themselves. Don’t forget that post the warrant conversion, the promoter holding drops to an unacceptable 22% odd. Not maintainable.

[odysee]

Title- ‘Slaps in the face’ of retail shareholders.

Grand announcement of Consolidation of 12 overseas subsidiaries ( one year ago) as it is easier to present one set of accounts and more meaningful. Timeframe indicated appropriately 6 months
Result- Not done/ pending

Appointment of BDO Global to assist in the consolidation exercise
Result- Zilch/ No update

Arrangements made and buyer firmed up for Oak divestment to ensure no open market sale and maintaining stability in price.
Result- Total quantity comprising about 7% of equity sold in the open market contrary to promises made. The pandemic arguably played spoilsport.

Axis bank settlement and closure of the account ( 8 months ago)-Stated that it would happen any day and we should take it as done.
Result- Still outstanding and date after date after date deferred at NCLT.

LOC in the pipeline. Against consolidated receivables of the 12 ( to be) consolidated subsidiaries. Due diligence being done and BDO closely involved. Timeframe -by June/July 2020.
Result- Almost done ( for the last 6 months).

Surprise and sudden announcement of a massive quantum of convertible warrants at a throwaway price to random parties ( no reputable big investors).
Result- pending but will result in huge dilution and totally against the interest of long term retail investors.

Token dividend proposed months ago to kick start confidence building measures in the investor community
Approved at the AGM on 28th December 2020, payable on or before 25th January 2021.
Result- Not paid. In danger of default unless miraculously paid on 27th January.

Almost forgot-
Daum settlement- take it as done. ( please do as not too important in the context of the business but important to settle all outstanding litigation )

I shall not refer to various commitments made in the quarterly conference calls on clarifications relating to receivables/ debtors/ other current assets etc. Suffice it to say no action was taken post those calls.
Sheep bleat- like we retail shareholders too, but to no avail.

[odysee]

@Logan, is there any possibility that Axis Bank obtained a stay against BCG for disbursement of dividend to all shareholders including the promoters, till such time as their dues were cleared or settled? Mind you, there is no intimation to the Stock Exchange of this if so.

[odysee]

I cannot believe that the directors of BCG would be so grossly careless ( or incompetent) that they cannot meet their statutory obligation of paying the princely sum of Rs 2.5crore odd to the shareholders, and in the bargain risking further damage to their already tattered reputation of poor corporate governance, in addition to exposing themselves individually to personal jeopardy.

[Author]

Posts