Logan

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  • in reply to: General Discussion #14351
    Logan
    Registered Boarder

    Unsecured loans given to MediaMint (Vuchi Media) is 195.19crs and equity investment is 168.86crs (close to 170crs). Totally they’ve paid 365crs to MediaMint.

    The deal is for 566crs. 360crs should be paid in cash, 170crs in equity and 36crs later in cash. So remaining they’ve to pay (165+36=201)crs.

    in reply to: General Discussion #14344
    Logan
    Registered Boarder

    @nitin_asce,

    Does that mean they’ll get back those shares?

    4+
    in reply to: General Discussion #14338
    Logan
    Registered Boarder

    @Nikhilraj, yeah people will have that doubt and like I always say they should contact the management, talk to them, get answers or they should approach SEBI or other concerned authorities.

    in reply to: General Discussion #14336
    Logan
    Registered Boarder

    The problem with BCG is that the management/CEO will always act late and this will make people lose trust in the company. The appointment of new CFO is the best example. They knew that Mr.YSR would retire and had time to look for replacements but they got serious only when investors put pressure. Same with bonus shares issuance, and other important things. When you run a public company you should be very sharp and react quickly.

    Higher stock prices makes people lazy and we can see that with BCG. They should start taking more responsibilities and should look at investors concerns. Now they have to answer more than 3 lakhs shareholders and should address everyone’s concerns.

    FA is not in their hand but appointment of CFO was so they should look at things that are in their hands. Same with bonus, from their end if everything was done quickly then the exchanges wouldn’t have taken more time. If CS was there he’d have handled it properly and they’d have credited bonus shares sooner and we’d not have seen this much supply and pressure.

    Business wise they act quickly but market and investor relations wise they are very slow.

    in reply to: General Discussion #14328
    Logan
    Registered Boarder

    BCG has appointed Mr.Singaraju Lakshmi Narayana Raju as the new CFO.

    in reply to: General Discussion #14247
    Logan
    Registered Boarder

    @nitin_asce, I don’t know why they do that, in one of the conference calls the CEO said that since those reports contain sensitive information they don’t share those.

    I checked their old annual reports and in the 2007 AR, there is audit report of 3 companies mentioned. Frontier Data Management, International Expressions Inc and Pennyweb. People were saying these weren’t audited at all and those companies don’t exist etc but even though the report is old it shows that those companies’ are audited and profitable since the day they were acquired by BCG.

    in reply to: General Discussion #14240
    Logan
    Registered Boarder

    @Rathi_b, it’s great to see you writing in the forum after many months. Hope you and all the Hyderabad members are doing well. Thank you for taking the initiative to meet the management and informing us about the meet.

    These are my queries to the management, please review them once.

    1) Update on SHP, there’s a mismatch in the SHP data provided by the company in the MCA website and in the exchanges. In the January SHP shared by the company, the promoter holding is mentioned as having 23,32,84,604 (23.32 crore) shares but in March SHP, without adding the LLP shares, the promoters’ holding has reduced to 4,24,31,791 (4.24 crore) shares. What happened to the remaining 19,08,52,813 (19.08 crore) shares?

    In the conference call the CEO mentioned that he had not sold a single share in the last 12 months but his holding (without adding the LLP shares) has come down from 9,41,05,816 (9.41 crore) shares to 1,03,81,635 (1.03 crore) shares. Was there any off market transaction?

    Still no information about this has been shared with the investors. Because of non-disclosure will there be any action against the company? How will you (the CEO) address this issue to the shareholders if there’s any action by SEBI.

    2) Why haven’t you appointed CFO and CS yet? You knew that Mr.YSR would retire in March and you should’ve appointed his replacement before the retirement for smooth transition.

    3) Update on MediaMint acquisition. Why is there a delay and no update on this? Shares were allotted to MediaMint people few months back but still its taking time to close the deal. Is the deal still on or is it put on hold?

    4) Update on forensic audit.

    5) Can you share the audited reports of all the subsidiaries?

    6) Regarding acquisition of Audio Ad company, what payment options are you considering? Can you reveal the name of the target company?

    7) The news of forensic audit, reduction in promoters’ stake, delay in crediting bonus shares has brought a huge negative press about the company and also the company is losing credibility. How do you plan to change that?

    8) What steps are you taking to arrest the fall of BCG’s shares? The stock has corrected more than 60% and your actions aren’t helping it either. If this volatility is there, then all the retail shareholders will get nervous. We know that you don’t have control over the stock prices but if the communication is better we will get some relief. We don’t get answers to our calls, mails and we don’t know how to reach you in case if we have any concern.

    9) Can you appoint any of the Big 4 as the consolidating auditor?

    10) Update on FCF.

    11) Instead of paying dividend, can you use the same cash to buyback shares?

    in reply to: General Discussion #14229
    Logan
    Registered Boarder

    I think we should request Mr.Sharma (and FPIs) to take an active role (become a board member or take up an unofficial advisory role is he’s too busy) and guide them to make changes in the company. The reason people are panicking is because they are tired of not getting proper answers to their queries on time.

    Mr.Sharma has not bought shares from open market but was allotted warrants and converted them to shares which means he had many discussions with the management. He converted his warrants to shares when FA news was there so he knows about the company properly.

    If someone like him (who understands what investors want) advises the company regularly then we can expect better communication from the company.

    We’ll support the company on business matters but corporate governance this year so far has been horrible. It was better last year but not this year. It’s too bad that we have to wait till conference calls to get any response from the company. I’d have visited the company if I didn’t have health issues. My health problems started late last year but recently it has become worse.

    I don’t know when they’ll start giving importance to corporate governance and investor relations but the sooner they do that the better it’ll be for everyone. And strategic decisions too they have to look at various things before recommending/implementing. The second bonus was unnecessary and created more free float.

    in reply to: General Discussion #14217
    Logan
    Registered Boarder

    @akkithegrt, some of the FIIs that are investing are passive ones and they follow a particular index and if any stock/company is added to that index they’ll buy that stock and if it is removed from that index then they’ll stop investing. Passive funds don’t follow the fundamentals regularly like active funds do. Sometimes if a company’s business is not performing well then they’ll remove it from the index and sometimes if the stock doesn’t perform well also they’ll remove from the index. With BCG the good thing is the business is performing well but not the stock.

    The reason the stock is not performing well is because of many reasons but the main reason is because of delay in crediting bonus shares. Even after FA crash when Mr.Shankar Sharma converted his warrants to shares (and also said there was nothing wrong in doing impairment), the stock went from 60 something to 100+ (which is 160+ pre bonus) and then later even when there was SHP confusion it didn’t crash immediately because the CEO increased his stake in the company but all the problems started when they delayed crediting bonus shares.

    Had they credited within time then we wouldn’t have seen this much negativity and pressure. The reason they delayed bonus is because there was no CS who would’ve handled it better than how it was handled. Delaying by a week or two or max 30 days people wouldn’t have minded but they delayed it by more than 2 months. People thought that the management is not serious or trustworthy so the pressure is more.

    I think business wise no shareholder has any concern but the concern has always been with the communication. We have to wait till conference call to get any clarity. Even in conference calls max 1k people will attend and it will not reach every investor. They should start looking at improving investor relations ASAP. It’s either the communication will be very good or it’ll be very bad. They’ll have to find a middle ground. We don’t want sprint race or other speed races and we’ll be okay with a marathon. We want stability in prices and the management should look at that.

    in reply to: General Discussion #14203
    Logan
    Registered Boarder

    I also want to point out that BCG may buy only the audio assets of the target company and not the whole company. The overall revenue and/or the market cap of the target company will be more. Some of the companies mentioned in my previous post have revenues and market caps in excess of billion dollars. Also BCG may acquire assets of a company that is not mentioned in my previous post. It’s all guesses now and we’ll have to wait for the official communication from the company.

    in reply to: General Discussion #14201
    Logan
    Registered Boarder

    Market sentiment is negative because of the lazy/careless attitude of the management. Delaying bonus shares, CFO, CS appointment is making the market to lose trust on the management and also there were negative articles about the company. This second bonus may have helped the company to get money from FPIs sooner but it’s impact has been worse. Normally people would’ve sold bonus shares but because of the overall negative sentiment (market and company specific) the selling pressure is more.

    In these tough times when every stock is falling, the market expects companies to be more active in communication. Since the due diligence of the audio ad company is completed they should reveal the name of the target company. Some of the companies that fit the description provided by BCG are Audacy, Cumulus Streaming, Beasley Broadcast Group, TuneIn, iHeartRadio, Sirius XM, AccuRadio, Salem Media Group, MediaCo Holding etc. Few of these companies also hold radio assets so I just looked at these. If I have to check all the integrated digital platform companies then it’ll be a very long list.

    They are using the services of no.1 M&A advisors (Houlihan Lokey) and for financial due diligence they used EY’s services so they are serious about it.

    in reply to: General Discussion #14182
    Logan
    Registered Boarder

    @sac6310, that’s what I meant, last year (FY) there was confusion because of pledged shares but this time that confusion is not there.

    They themselves are spoiling their name and reputation. They should disclose each and every transaction. They messed up bonus issuance, SHP etc. I don’t know who’s giving advice to them on these things.

    Now that FPIs, Mr.Sharma and MediaMint people have shares, these people should at least make the management people to change their attitude.

    in reply to: General Discussion #14174
    Logan
    Registered Boarder

    This is very bad corporate governance by the management/promoters. All the hard work done by them will be of no use if they don’t change their attitude. Last year there was a mismatch in MCA SHP and the SHP data available in exchanges because of pledged shares but if that was calculated properly then there was no mismatch.

    5+
    in reply to: General Discussion #14096
    Logan
    Registered Boarder

    It’s common that people (including me) hate/don’t like what they don’t understand and since BCG’s business is different and it listed/traded in our markets way before other similar companies did, it’s easy to understand that some people hate it just because they don’t understand it better. Affle though is an ad-tech company, it’s business model is way different than that of BCG’s. Affle is a very good company and it focuses more on ads on mobile devices because of which it doesn’t have huge receivables (there are other factors also).

    You have different companies focusing on different things but they all come under the ad-tech bracket. Criteo focuses more on e-commerce whereas others focus more on CTV. So receivables, payables, advances will be different for different companies. Comparing these companies with IT companies doesn’t work and doesn’t make any sense.

    If high receivables was the main problem and it meant that the business is fraud then The Trade Desk wouldn’t have become a leader in the ad-tech industry as it has receivables double it’s revenue. The cash on hand that TTD has is also part of the huge payables that are also more than it’s revenues.

    Forget everything else and just focus on this, TTD has to pay clients more than the revenue it makes. TTD has managed all these because of the nature of the industry and because it’s clients are also flexible. Big boys of ad-tech industry like Google, Facebook, Amazon don’t have these problems because of their size. If TTD had traded in our markets then some people would’ve called it a fraud because of its huge receivables and payables. They never would’ve believed the profits it makes.

    (I think it’s receivable days are more than 500 or 600 days)

    So it’s left to investors’ choices and what they want and don’t want in their portfolio. If they worry about receivables then they shouldn’t invest in ad-tech companies. There are many headwinds and tailwinds in the ad-tech industry and investors have to follow many different things before they buy or sell. Metaverse, digital transformation etc are opportunities but inflation, supply chain issues, Ukraine war etc are some of the headwinds. Companies have to manage/balance all these and investors should give importance to these important things.

    in reply to: General Discussion #14073
    Logan
    Registered Boarder

    I saw that too, there was some 16-17 lakh sell order before and after the 25 lakh buy order was executed these operators suddenly put more than 24 lakhs for sale. They are desperate to bring the price down. It would’ve come out of LC and maybe traded in green.

    Increasing the free float by giving bonus has made manipulation easier.

    in reply to: General Discussion #14067
    Logan
    Registered Boarder

    @brightspot, I just shared some information on forensic audit. I didn’t defend the CEO or the company and in fact I’ve been very critical of the company about the topics you’ve mentioned. If you check the queries that I sent, I have asked every critical question that investors may have. As investors we can’t do more than this.

    In the recent conference call that Man Industries conducted, they just said that there’s nothing more to discuss as there was no update after the May 12th call (Man Industries had held a call on 12th to discuss FA).

    What I’ve understood from seeing all the companies that were asked to undergo FA, once the audit is initiated, everything will be in SEBI’s hands and companies can’t do much about this.

    Transcript of the recent conference call held by Man Industries (only this much was discussed about the FA)

    Caller : And finally any update on the forensic audit after the last call that we had any reply or revert
    from SEBI till date?

    Ashok Gupta (Man Industries): No further updates after that call of 12th May, nothing is there.

    This is similar to what Sun Pharma people had said in one of the conference calls when people asked about FA.

    in reply to: General Discussion #14065
    Logan
    Registered Boarder

    There’s this company called Man Industries and sebi has initiated forensic audit of that company too. Sebi sent notice to the company in October or November but the company informed the market last month (May 9th or 10th).

    There’s no news about this and nobody is writing anything negative about this company and this news didn’t have much impact on the stock price too. It fell from 85 to 75 and then there was not much fall and it went straight back to 84-85 and is now trading at 81.

    Man Industries management have said that they have given the auditors and sebi every available document, information and that they don’t have anything more to share as they’ve shared everything.

    So it’s clear that sebi is okay with companies not informing the markets immediately and it will give companies time to give explanation. Companies will have to inform the market only when the audit is initiated. I don’t think sebi will reverse it’s decision and not do the audit and I guess once they send notice they will conduct the audit even if companies provide all the information.

    in reply to: General Discussion #14059
    Logan
    Registered Boarder

    As they say “if it ain’t broke, don’t fix it” – the bonus issue is a very good example of this. From the day the bonus was announced there was some pressure on the stock. If the price was maybe more than 500 or 1000 it would’ve made more sense but I think the CEO and the management team went with the previous winning formula but it backfired this time. They wanted to give bonus and also make the FPIs pay their money sooner. Hit two birds with one stone worked last time but this time not quite so well.

    There were other reasons as well for this negative trend – like FA, delay in crediting bonus shares, Ukraine war, global tech sell-off and later SHP confusion. Even after FA when Mr.Sharma converted his warrants to shares, the stock rallied from 80-odd to 160-odd levels (pre-bonus) but the delay in crediting bonus caused the most negativity. It even brought media’s attention and even after that they took a little more time to credit the shares. Maybe if they had credited at the right time or with a delay of maybe 1 or 2 weeks, the stock wouldn’t have performed this badly.

    Last time too after crediting bonus shares there was similar kind of a sell-off as the stock corrected/fell 25-30%. Last time people tried to sell 1 bonus share but this time it is 2 shares so the volume and pressure both are more. Add to that the increase in the number of shareholders too.

    Coming to the fundamentals, the performance of the company is improving and they are acquiring 2 companies (3 if you include Lycos) to grow even more. Last time when outstanding issues happened the company’s hands were tied because there was pressure on the financials (high working capital requirements and cash flow issues) and they couldn’t announce any dividend or other things to bring any confidence but this time they have increased the dividend amount 6 times. Paying 60crs is not a joke. Some people want dividends similar to IT companies but the fact is BCG is not an IT company (it never was). It is in a growing industry which has both tailwinds (positives) and headwinds (negatives) and you have to make investments to grow and to survive. Even giants like Facebook are pivoting to a different business. They started focusing on hardware for their Metaverse plans. 2012-13 to 2019 were very horrible for many ad-tech companies and many went bust. Today’s winners like Criteo, Magnite, Perion etc struggled a lot in that period. Since the whole industry faces receivable issues, you have to be very careful about your finances and you have to do the right moves. I really liked their plans to acquire audio ad company (or it’s assets). Diversification in the same field/industry is a good move.

    The management people have no choice but to improve corporate governance and investor relations. There was a massive improvement in the last 2 years but that also was not always 100%. From day one I have always been critical of this and I have asked the CEO about this in almost every conference call even though I look like an idiot asking the same question every time and not getting proper answers.

    I have said this many times and I’ll say it again – If any investor has any complaints then they have to contact the company/management and if they don’t respond then they’ll have to go to the authorities. It’s your hard earned money.

    in reply to: Questions to ask / Post-Conference Update #14030
    Logan
    Registered Boarder

    @Admin, these are my queries, please check them once and send it to the IR.

    Congrats on a great year. We hope to see similar growth rates in the coming quarters.

    Queries

    1) Update on forensic audit initiated by SEBI.

    2) In one of the articles in The Morning Context, it is mentioned that the audit was initiated because of lack of disclosure by the company on impairment of assets. You did disclose about it to the shareholders through the exchanges but the same details were not reported in the annual report. Was this the reason for SEBI to initiate the audit?

    3) Did the promoter group (which includes the CEO) sell their stakes in the company? If so then why didn’t they (you) disclose it to the shareholders? SEBI can take further actions against the company/promoters because of this and will have a negative consequence later. This will impact all the stakeholders (management, shareholders, promoters etc).

    4) Why was there a delay in crediting bonus shares? This time crediting of bonus shares took more than 2 months but last time there was no delay and you credited the shares within time. Was the delay because of the absence of company secretary who’d have handled these tasks properly?

    5) Why is the company secretary position vacant since many months? Why didn’t you appoint anyone till now?

    6) The same with the position of CFO, you knew that Mr.YSR would retire in March but still you haven’t appointed anyone to that position yet. You said that you have shortlisted few candidates for the position and also said that the position would be filled in April, now it is June and still the position is vacant. What is the reason for this delay?

    7) All the good work done by the company/management all these years will be forgotten because of few actions like promoters selling their stakes without informing the market and also if the communication with shareholders/market is not transparent.

    Regarding communication, we feel that the company does not take shareholders seriously and you provide details only when you feel like doing so. One example is delay in crediting bonus shares and not updating the shareholders about it even after many days. You decided to update only when there was a pressure from the media. We have to wait till the conference call to get clarity and all our mails and calls will not be answered by your IR department.

    8) We request you to take the initiative to talk to more analysts and the media. Since the company is not covered by many analysts and since it also doesn’t have a proper peer trading in our markets, people assume many things wrongly. For example, in a recent article in the Economic Times (ET Prime) they have written about receivables, loans and advances and that the revenues seem inflated etc without talking to you and getting any clarification from you. They have compared BCG with random companies which is very inaccurate. These can be solved to an extent if you give more interviews and talk to more analysts and institutions.

    9) We have requested you many times to provide complete details of few items on the balance sheet in the annual report but you haven’t taken our request seriously. You have explained in conference calls about those items but still people will have doubts because most of them will read annual reports and only a few will attend conference calls. How will analysts and new investors know what those items are if they’re not mentioned in the annual report? Giving information on those items in investor presentation also won’t matter much because people will always prefer to have those details in the annual reports (items like loans and advances, other current assets, other receivables, other liabilities etc)

    10) The news of forensic audit, reduction in promoters’ stake, delay in crediting bonus shares has brought a huge negative press about the company and also the company is losing credibility. How do you plan to change that?

    11) In the last conference call you said that there’ll be a change in the accounting policy of the company and that we’d get an update in the month of March about it but we still haven’t got any update yet.

    12) Can you share annual reports of the company’s subsidiaries? Since BCG is a mid/large cap now, people will expect more from you and uploading annual reports of subsidiaries will bring more transparency.

    13) When will the acquisition of MediaMint be completed?

    14) We see reports of other ad-tech companies saying that inflation, supply chain issues, Ukraine War are affecting their businesses. How do these impact BCG’s business? Will it lead to a cut in ad spend by most of the advertisers?

    15) Since Netflix has announced that it would start an ad based plan in the near future, what is the impact of that on BCG and MediaMint?

    16) Can you appoint Mr.Arjun Malhotra (who is on an advisory role) as a board member?

    17) Update on Lycos-Daum issue. When do you plan to close this? It would be better for all the stakeholders if this long pending issue is cleared. It’ll bring more credibility to the company.

    18) The money raised from issuing preferential shares for the acquisition of MediaMint is with a subsidiary of BCG. What is the reason for this? Shouldn’t it be with the parent company?

    19) Regarding acquisition of Audio Ad company, what payment options are you considering? Will you again do a preferential offer or do you have plans to raise any debt?

    in reply to: General Discussion #14026
    Logan
    Registered Boarder

    I guess people are selling bonus shares which they recieved yesterday. I don’t understand the concept of selling bonus shares as I don’t know what you’ll get from doing that but that’s what people do when companies issue bonus. Last time also we saw similar thing happen. The stock was under pressure for some time after the bonus shares were credited and then the news of Mr.Sharma investing in BCG took that pressure off.

    This time the total number of shareholders has also increased and the ratio is also more (2 for every 3 but last time 1 for every 4) so the selling pressure is more (as people may sell those 2 extra shares). FA, promoter SHP confusion and pressure on tech companies’ shares are also playing a role.

    (Tanla, Affle also had great quarters but even their shares were under pressure after their results)

Viewing 20 posts - 1 through 20 (of 717 total)