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Rathi_bRegistered Boarder
We will try for a meet before the AGM.
Rathi_bRegistered Boarder@jmathew brother that is a steep curve upwards. I agree ideally we should be looking at that figure which you have so logically put, but the problem with BCG is it has never had a good PE. This can attributed to the fact that the company had never previously properly made an effort to reduce the liquidity to less than 15%. From the present position of more than 60% it looks very bleak. I hope a few investors genuinely engaged in the online Business are brought in and more than that an emphasis on future technological advancements and sustenance is made. Because the one thing that the market has never seen in this company is stability in its managerial decisions, it very important for this company from now on. The last I can recollect the company had it a maximum valuation of 800 million dollars around 8-9 years ago. If the company shares start rising now we will see regular profit booking atleast for the next one year because it will be a test for the management to keep the boat afloat and not rock it again with any other mishap. So if your price( which I really hope the stock achieves) we are looking at a time frame of atleast a year and a half to start moving to that trajectory and maybe after 2-3 years we see that number. In all the stocks that have come out of trouble there is a lot of profit booking happening after a little while( here I think once it reaches its book value) because it takes time for the company to earn confidence of stable investors. After that a steep price correction and again an upward trajectory. And it is going to have atleast 4-5 cycles like this and during this time the strong big hands enter into the market who will reduce the liquidity to help the company grow. Remember the g gang has the biggest triumph card here. It is their whimsical trading that will decide what the price will be for the next one year. I say this because if they go on an adventure ride to increase their share by shorting the stock regularly we will not see a desired price movement. The immediate responsibility of the management should be to facilitate their exit even if it happens at higher price.
Rathi_bRegistered BoarderI don’t think it is going to be done today I am hoping it gets done by AGM.
As far as share price goes it should start rising rapidly in a few weeks once LOC amounts start trickling in. Market would do that to pressure the company to settle Daum. Hence maximum another month of wilderness. Be calm and chill, enjoy the time. I am confident about the share price movement. There has been a lot of consolidation in the last one month with more than 15-18% of the company getting traded, this much of trading is not possible only with g gang maybe some other big gun has entered the arena, looking forward to see the SHP now.Rathi_bRegistered BoarderTo add to it admin ji please also ask the management if they are looking to get stable investors other than buyback of shares.
Rathi_bRegistered BoarderHello @drjaysee, the LOC is in final stages now, maybe by 28th December we will see the first tranche trickling into the subsidiaries and Daum wouldn’t be far away once that starts. I know this is an anonymous forum with pseudonyms, but I would like to tell you that we have made a lot of progress from where things were. As far as I am concerned and the group from Hyderabad we have had good discussions directly with SKR. And he would also concour with us.
One day you would turn back be proud, happy and thankful to the admin and all of the members over here and yourself for being here.Rathi_bRegistered BoarderRathi_bRegistered BoarderRathi_bRegistered BoarderI’m sorry we did not prioritise it as the consolidation of US entities was tentatively put on hold.
2+Rathi_bRegistered BoarderFollow up meet of representatives from Brightcom Investors forum with Suresh Reddy.
31 October, 2020
Yesterday we had a meeting with CEO Suresh Reddy primarily regarding the Audit reports and letters regarding the status of LOC. Relavent aspects like nature and price of the stock, Axis bank and Daum settlement were also discussed amongst others.
1. We were shown the E and Y reports for the last three years of the Israeli entity of Brightcom, with the latest being the 2020 report.
2. Letters relevant to Line Of Credit were shown and thorough discussion was held on it. We are convinced that the company is on right direction concerning it’s execution.
3. Regarding the situation with Axis bank, we were shown the letter of the earlier OTS agreement done with the management of the bank and Brightcom and also we were told that the bank has still not got back regarding the settlement offer that was tabled to them.We were again satisfactorily assured that the settlement would be completed once the bank reverts.
4. A question regarding getting new stable investors into the company was discussed and Suresh has assured us that he is assiduously working to get stable and like minded investors into the company alongside working on LOC.
5. A question regarding the number of employees working for Brightcom in India was raised with regards to the fact that there were differences from 2016-17 to 2020. Suresh told us that he would check the data and give us information about how many employees the company has India and the nature of their employment ( contractual or permanent).
6. We were shown the settlement letter between Brightcom and Daum. Suresh had again reiterated that this would be settled immediately after the money from LOC in this regard is received.
7. Questions regarding the circuits and the nature of the stock ( illiquid position) were raised and discussed. Suresh regarding the circuit levels had told us that, all he can do is to make a submission to stock exchanges, as the exchanges have their own algorithms and surveillance measures which they use to change the circuit levels when they think it is relavent. Regarding the illiquid nature of the stock Suresh has told us that he would discuss with his management and pursue it with the exchanges to get it changed.
8. Lastly we had a discussion regarding the Fake news and maligning of the company being done on moneycontrol. Suresh told us that the company had previously written letters to moneycontrol to moderate it better, but no action was taken by them in that regard. We pushed him to take a stronger legal action against them stating that they are just causing more damage than any good to the 50000 investors of the company. Suresh told us that he would look into it with his legal team but had also told us that the company rightnow is very busy working to get the LOC done and has asked us to be a bit patient regarding the situation at moneycontrol.Regarding letters relavent to LOC, Daum, Axis and Audit reports that were shown to us, we who were present at the meeting submit that we were given a thorough opportunity to check them, but because of the sensitive nature of information we cannot disclose the details other than what has been already written above. I along with other investors present for meeting hope that the members of the forum and other investors understand our predicament in this regard.
Suresh was very courteous and he was happy to continue this relationship with retail investors.
Rathi_bRegistered Boarder442 fortune India 500 2020 report.
3+Rathi_bRegistered BoarderSKR is looking into the g gang thing. He spoke with us about them. Be calm and hold on to your shares. Please do not sell them in panic. Good days are coming. I’m holding onto mine. I hope you all will too. I can’t really tell you about what end game is, I don’t know either. But we were clearly assured that stable investors who would not manipulate the stock price will be brought in the company.
Rathi_bRegistered BoarderLogan you are looking at a report of upto Sep 30. The bottom of 4.98 was on 5th of October. If you see till today over 11% of the company has been traded. This is where my concern lies. The g gang might have done some good business during the this week. We need to put pressure on the management to get them out. They are real cause for the troubles not really axis. They are much better privy to the settlement than us. They know things we still don’t know. Let me reiterate the g gang is the reason for the price fall not really axis. They sought to play with the investor sentiment with Axis to lap up more shares. They did increase their holdings for sure during the last selloff.
Rathi_bRegistered Boarder@Logan NCLT is just a gimmick to get more money out. During our conversation we did discuss with him about this issue in length. The root of the problem arises when brightcom started paying off SBI and Canara debts. During that time to complete the OTS with those banks and due to pooling of funds for it they stopped paying axis bank their installments. It seems while this was happening they did reach out Axis regarding their situation in paying of the loans to other entities. It seems the money at that time that was due was around 9 crores. So when brightcom spoke to them about conducting a OTS axis once SBI and Canara was done, it seems axis had agreed to it. During the company’s talks with Axis management at that time the base principle over the payment of remaining dues was agreed to be 9 crores. But during last year when brightcom approached axis for a settlement the company management had changed and they were not agreeing to the base principle of 9 crores, instead they sought a significantly higher principle over which interest was to be paid. This was when DRT( put up of collateral for auction) had happened. Then the company got a stay on the issue over there. So then Axis this year to muzzle a good payment term took them to IBC under section 7 of it. And since then it has been languishing there. Both of the parties have been negotiating the terms since the past many months and SKR during our conversation with him had said a proper offer was placed to the bank seeing how the negotiations were happening. I think now it is a matter of just handful amount of crores which is still being considered so I am confident of the situation. My concern is not about axis not at all, I am more concerned about g gang and their predatory strategy of lapping up shares. They have been constantly selling from around 8.50 to were it is now. Hopefully a stable investor is bought to flush those people out.
Rathi_bRegistered BoarderRathi_bRegistered BoarderIt is with Axis now, they need to get back to the company. Whenever they do so at their choosing the issue would be settled. SKR had reassuring response in this regard.
Rathi_bRegistered Boarder@buffet SKR has categorically stated that he has no role in price manipulation on the contrary he himself stated that he was pained by the recent selloff. I can’t state when it will end or it has ended today but he has assured that getting stable investors and reducing liquidity is his atmost priority. Regarding buyback he has said what he had said in the concall.
Peshwa Acharya is a board member now and SKR said that he was looking forward to his contribution to the company.
Regarding DAUM and his obligation to buy it back he has assured us that the ball was in his court and he would settle it at the earliest once LOC is operational. He stated that since the brand(LYCOS) is now not in any use and that they had used it before, buying it back would add confidence and credibility to the company. He has stated that LOC is in its final stages.Rathi_bRegistered BoarderRathi_bRegistered BoarderSuresh Kumar Reddy’s meet with representatives of brightcom investors forum.
5th October,2020.
In the investor’s meet with SKR, a broad discussion was held majorly in four aspects amongst others. The Axis bank settlement, LOC, Daum and recent fall in the share price.
Coming to the first issue of Axis settlement, Suresh has assured that a good settlement offer was tabled to Axis Bank, which is being looked at by the bank. SKR is very hopeful of an amicable resolution.
Regarding the LOC the Suresh has informed us that an in-principle approval was received three months back and the discussion with the consortium of lenders is at final stages. A satisfactory assurance in this regard was made by him.
Suresh has assured us that Daum issue would be settled once LOC starts becoming operational.
An in depth discussion had been held with Suresh regarding the recent fall in the share price. He was honest regarding a large selloff and has assured that he has spoken to the concerned shareholder in this regard. He has stated that the company is looking for long term investors to invest in the company and is hopeful in getting one at the earliest. This was also spoken in regard to the fact that over 60% of the company is publicly traded.
A representation was made by the representatives of the forum regarding the poor state of investor relation and the image of the company in public. Suresh has stated that a new person has been hired for investors relations and that they would work towards making better this aspect of the company. We emphasised regarding the replying to the mails sent to the company, and he has assured that very soon steps would be taken to address it.
An update about the investor’s presentation held in September was asked, and Suresh said that notification on it would be sent to the exchanges.
Regarding the EY audit, he has agreed to share the copy to one of our representatives.
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