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LoganRegistered Boarder
@drjaysee, BCG is the only company where few investors hold other investors responsible for price movements and actions of the CEO. If some people have problem with the CEO and the promoters, let them give complaint to the police or to SEBI. We’ll support them if they find something wrong with the company.
Instead of dealing with the CEO, they blame other investors. They think they are the only people who have put money. They don’t understand that each and every person, be it members of this forum or any other investor of BCG has put his/her hard earned money.
We may have different opinions, but at the end of day we all want the same thing i.e good returns on our investments. I don’t see this drama happening in other companies. Investors of other companies are very mature and they speak/comment in a dignified manner.
I don’t think anyone here has advised others to buy or sell shares. It’s left to individuals to take that decision. If someone buys or sells shares of any company looking at what others comment, then that person is the most stupid person in my opinion. With BCG, if I make money or lose money then I won’t blame anyone else, I’ll blame myself.
Many people don’t want us to discuss important things. They don’t want this forum to exist because we don’t agree with their views. They only want everyone to discuss conspiracy theories like promoters snatching away shares. For every problem they think the answer is promoters snatching away shares.
They abuse us and write fake things about us and if they continue to do that then we can take legal actions against them. Till now we have neglected them but even our patience is running thin.
LoganRegistered Boarder@drjaysee, the results are disappointing. Always Q1 and Q3 will be good for BCG but I thought in Q2 BCG would grow at least 10% YOY because of the corona situation. All the other adtech companies had a great quarter except BCG.
@odysee, I don’t think increase in number of publishers/accounts in Adauth will result in significant growth in revenues because Magnite Inc (Rubicon & Telaria combined) has more than 85lakh accounts and 4.75lakh publishers. Magnite’s revenue is less than BCG’s (half of BCG) so if we consider only data on Adauth for growth and other analysis then we’ll not get a clear picture.LoganRegistered Boarder@rahul, only the CEO could answer that question. I don’t have knowledge on that subject. They might have considered that option too but my guess is that one subsidiary may not get access to all the receivables because other subs are not under it. In my opinion, the parent company may access it easily because all the subs come under the parent. That’s why they wanted to consolidate all the subs which makes it easier for many things. Don’t know why they put it on hold.
LoganRegistered Boarder@tanv151, I agree with you.
On top of that we have the US presidential election drama going on which will benefit news publishers and it looks like this drama won’t stop for few weeks at least. There will be increase in traffic in these websites. BCG did a great job signing reputed news publishers in their B-Local initiative. Then there’ll be Christmas shopping (mostly online). This quarter (Oct-Dec) will be very good for BCG.
LoganRegistered BoarderThe Trade Desk Sets Record Earnings as Marketers Embrace Programmatic Advertising
CEO Jeff Green said during the earnings call the company has gained more market share through the first three quarters of 2020 than in any other point in the company’s history
Other ad-tech companies have also boasted record highs as programmatic spending return to pre-lockdown levels, since marketers value the channel for the flexibility and efficiency it offers while facing uncertainty during the pandemic.
The Trade Desk Explodes Higher on Stronger Ad Revenue
Programmatic advertising specialist The Trade Desk (NASDAQ:TTD) was up more than 10% in after-hours trading Thursday in the wake of its blowout third-quarter financial results. The company reported revenue of $216 million, up 32% year over year, while delivering earnings per share (EPS) of $1.27. To put that in context, analysts’ consensus estimates were calling for revenue of $180.88 million and EPS of $0.43.
Growth is also back near pre-pandemic levels, as the company’s 32% year over year revenue increase is on par with the 35% growth it delivered in Q4 2019.
LoganRegistered BoarderLoganRegistered BoarderAlphabet stock surges as resurgent Google ad sales deliver big earnings beat
“Regarding revenue, in the third quarter, we benefited from a broad-based improvement in advertisers spend across all geographies and nearly all verticals,” Chief Financial Officer Ruth Porat said on a conference call.
Online ad sales seem to have bounced back in the third quarter from early COVID-19-related weakness, as Pinterest Inc. PINS and Snap Inc. SNAP already disclosed big bumps in ad sales, juiced by greater customer engagement.
Shares in Google’s parent soar 6% on ad sales rebound
About 90% of Google’s revenue stems from advertising, much of it linked to search results. That business ground to a halt in the second quarter, as the pandemic decimated its biggest clients, travel and tourism companies. But as lockdowns wore on and people adjusted to spending more time at home, e-commerce has boomed and people have spent more time watching YouTube, helping the search giant business get going again. The U.S. economy also bounced back, notching record growth in the third quarter.
LoganRegistered Boarder@VALUEBUYER001, please take care of your health, you should always give preference to your health first.
See these price fluctuations will be there in stock market, it should not have an impact on your health. I know it’s easy said than done but please try not to concentrate too much on price changes.
Regarding LOC, I don’t want to give false hopes but I think the rules will be different in each and every country. BCG may not get loans in India but it may get them in the US. If the US banks won’t give loans they’ll directly tell BCG about that. Even BCG’s management knows about it and they wouldn’t have applied for loans if they knew they won’t get it.
The lenders ask each and every detail about the company, they look at complete history of BCG, then only they’ll give loans. They’ll know about the 150crs write off that BCG did and they’ll understand the situation.
LoganRegistered Boarder@VALUEBUYER001, we all know the history of BCG. That write off BCG did was because of LGS global and it was not BCG which defaulted on those loans. Even the banks know that so only they agreed to the ots. If banks found something wrong then they wouldn’t have agreed right?
Coming to 400cr profits, you have to understand that not all of that amount is liquid. Some amount is stuck in receivables, some amount is used to run the daily operations and also for improving the technology (very competitive industry). Whatever is left you use it to pay off the loans or pay dividends etc.
If all the profits were used to pay off loans, you’ll have to stop upgrading everything and also BCG doesn’t have large reserves either so you have to sell your assets to pay off the loans which leads to less revenues, profits etc and later you end up going out of business.
BCG wrote off close to 150 crores and they have paid close to 250 crores to banks (with interest).
LoganRegistered Boarder@odysee, it depends on how you see things.
It’s like Is the glass half empty or half full?
I see it as half full because I know, in the past, it was almost empty. I want to see further progress (I want the glass to be full) and the progress should be quick and not like how it was in the past.
The company has made good (but slow) progress on closing off bank loans of SBI and Canara and if Axis hadn’t gone to court then that loan would be closed by now.
I don’t know anything about the LOC process so I won’t comment about it but the CEO should share more details about it.
LoganRegistered Boarder@JRS, while analysing BCG you should always consider consolidated figures because all of BCG’s strengths are in BCG’s subsidiaries who do online/digital advertising business. BCG’s Israeli sub OMS is the best among the subs. It’s because of the Israeli team, BCG’S growth was high.
The parent company is more like an holding company. Once programmatic advertising picks up in India like in the western markets, BCG may start scaling up the operations in India. Once the issues are resolved, they may have other plans like the project with Mr.Pisipathi, AI & ML etc but their main focus has always been on online/digital advertising.
The problem is all the financial websites report standalone figures and they compare BCG with random companies which causes more confusions so it’s always best to read the annual report to understand things better.
There are many items in the annual report which are mentioned as other assets, loans and advances etc so to get a clear picture please read the asset impairment presentation that BCG shared.
If you have any doubt please let us know.
LoganRegistered Boarder@Antu, I think bankers can explain about the process better as they’ll have good knowledge on the topic.
Also the link which you have shared, in that they’ve discussed mostly about personal line of credit and I think the process is much more complex for businesses.
4+LoganRegistered Boarder@rahul, I don’t think that’s a good idea when you have other options. LOC which is taken against the receivables is a better option because you are taking your own money in this case.
With selling a part of a subsidiary you may have to listen to other investors and you can’t take decisions independently. In the future if you want to consolidate all the subs then you’ve to buyout the investors’ shares and that time you have to arrange funds. Those investors obviously will ask a premium price for their shares.
It doesn’t make sense to sell a part of a profit making company to get back Lycos or to pay off India debt. Though both are important from the market/valuation perspective, business wise it doesn’t make sense.
It’s the classic case of “kill the goose that lays the golden eggs“.
LoganRegistered BoarderI request everyone to send mails to the company asking them to keep this year’s (FY20) annual report as informative as possible (especially the balance sheet).
There are many items where proper details aren’t available and the company simply has mentioned those items as other assets, loans and advances etc. (They’ve followed the accounting standards but we need more information)
We investors know and understand what those items are but any random person (new investor or potential investor or even analysts) will have many confusions when they read the balance sheet.
They gave us good presentation after the asset impairment and we want them to do the same in annual report.
If anyone who wants to follow the company he/she will always read annual reports and they never will look at presentations that the company has shared with investors so it’s very important to provide proper details in the annual report.
We should put more pressure on the company to do it as I’ve seen many people complain about it on various platforms. Since many people don’t understand these things properly they’ll simply start saying nonsense things about the company.
LoganRegistered Boarder@odysee, the main reason for our frustrations is that there’s so much manipulation in share prices. It has been happening since many years and Oak selling made matters even worse.
Business wise, the company took few bad decisions which resulted in this current situation. They should’ve been more careful when they bought Lycos from Daum (they should’ve put some clauses in the agreement), then they shouldn’t have let LGS management lose focus on the business which resulted in the receivable write off. These 2 things are the main causes for the crash in stock price (what was already bad, PE selling made matters even worse).
Lycos Life was a failure where BCG burnt cash but if it had clicked then we’d have seen even higher growth rates and better cash flows (now almost everyone has a smart watch, BCG was early in that). I don’t think they spent much on Apollo Lycos and they never took it seriously.
The best thing is they didn’t lose focus on digital/online advertising, and in fact the best investment was made on programmatic advertising platform “Brightcom”. The online advertising industry was going programmatic and BCG’S management team took a great decision to start Brightcom. The future of advertising is programmatic and starting Brightcom opened up many opportunities for BCG.
LoganRegistered BoarderThe pandemic has accelerated the development of all sorts of business trends and technology. Two of them are digital advertising and connected TV (CTV).
Growth now, profit later
Neither Magnite nor Roku currently operate with the intent of maximizing profitability. Rather, both operate at a loss in order to capitalize on the growing CTV and digital ad market. Over the last 12 months, Magnite reported negative free cash flow of $16.7 million, and Roku reported negative free cash flow of $45.8 million.
2+LoganRegistered Boarder@Antu, no problem, we all have doubts and confusions on many topics. We can have meaningful discussions in this forum which will benefit everyone.
Not only you but everyone is nervous about the second corona wave so it’s natural to share your views and opinions on that topic.
I don’t know much about the LOC process so I won’t talk about it. Only the CEO could clear your doubts.
See the above post #8924, most of the major networks are converting their traditional business to streaming which will benefit adtech companies. Magnite Inc signed a new deal with Walt Disney. Disney+ subscribers have increased in just 3 months (33.5M to 57.5M).
We can see the same in IPL also, more people are streaming it instead of watching it on TV.
So for BCG, business wise, there are more opportunities (not just for present but for future too) but we don’t know when all the positives will reflect on the price. Even after posting good results BCG’s stock fell so it’s mostly to do with not resolving the outstanding issues yet.
LoganRegistered BoarderInvestors Should Love Walt Disney’s Latest Move
Walt Disney (NYSE:DIS) made a surprising move this week that sent its stock surging higher. The media giant announced a reorganization of its business that will accelerate its transition from traditional television to streaming.
Disney has good reason to accelerate its efforts to grow its streaming business. In the company’s third quarter of fiscal 2020, Disney+ subscribers hit 57.5 million, up from 33.5 million just three months earlier. Further, Disney’s Hulu subscribers increased from 32.1 million to 35.5 million over this same period.
Why Magnite Stock Surged Higher on Tuesday
The gain follows news that Walt Disney (NYSE:DIS), a major Magnite customer, is accelerating its efforts in streaming by creating a distinct unit focused on the distribution and monetization of its streaming content.
Magnite, which has an exclusive contract with Disney’s Hulu to serve all of the major streaming platform’s connected-TV ad inventory programmatically, could benefit from Disney’s invigorated effort to distribute and monetize streaming content.
LoganRegistered Boarder@VALUEBUYER001 and @odysee, if you want more articles like that then I can share them here. There are many articles on TTD, Criteo and other adtech companies where they talk about the importance of programmatic advertising and other ad related stuff. They all are very interesting to read.
LoganRegistered BoarderHow an advertising minnow outgrew the big beasts
Even after years of trying, he (TTD CEO) admitted it is still hard to explain the business model to people unfamiliar with the industry. “My mother still has no idea what I do,” he said.
The CEO of The Trade Desk himself has said even after years of trying, still many people don’t understand the business model properly. (I’ve been saying the same thing from the day I started writing here. The adtech industry is very complex and when BCG came to the market, not everyone understood it properly and only a few people did. The management didn’t take the effort to inform the markets properly).
The adtech groups that were meant to revolutionise the industry with automated, real-time and highly targeted ad buying have mostly come and gone, chewed up by a fast-changing sector and ferocious competition from Silicon Valley.
Even those that have survived — such as AT&T’s Xandr and Criteo — have been affected by tougher privacy rules and new restrictions on the data flows that are the sector’s lifeblood.
Many companies have failed to survive in adtech industry and even the big players have struggled. When I said this, some people mocked me but the reputed “Financial Times” has said the same thing.
Coming to BCG, business wise they know what they are doing and we will always support them but the problem has always been market/stock related and the management didn’t give importance to investors. They need to improve a lot on that.
Now, thankfully, everyone understands the importance of adtech sector and they are understanding the business model properly and if BCG improves on transparency then people will value the company properly.
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