[Logan]

@myainvest, I can’t be SKR because my age is half his age and in terms of knowledge you can compare my writing with his, I don’t even have half the knowledge he has.

I respect him and appreciate his honesty, in conference calls few people accuse him of weird things but still he answers them patiently.

[Logan]

I understand long term investors’ suffering and I will not talk about them because they have the right to criticize the management and the CEO. They highlight few important points and it’s good to know about those points. They’ll always have my support.

But what I can’t stand is random people who are more traders than investors who don’t even know about the company and fundamentals talking as if they know everything.

[Logan]

No one should buy or sell shares based on what others say. Everyone should do their own research before buying any share. If someone can’t do any research then he/she should go buy mutual funds.

There’s no shortcut to success, only hardwork and facts will lead us to success.

I’m sharing my opinions here and it should never be taken for buy or sell calls.

[Logan]

@odysee, I have the same information that you have. I don’t want to guess or speculate when they may get the LOC.

I want them to get it before the campaigns for the US presidential election starts. The election date is November 3rd so the campain may start from September end or early October.

I think this time the spending on ads will be more because of the pandemic, many people will not attend the rallies.

Signing reputed publishers this year was a smart move, since social media is getting a lot of negative press these days, the traffic will be more in these publishers website.

[Logan]

@bitran, please write frequently in the forum. We need someone like you who understands reality. The forum will get even better if you share your opinions. From now itself we can start preparing questions to be asked in the next conference call and your suggestions will help us a lot.

[Logan]

3>

When it comes to intangibles, BCG has their own proprietary platform like Compass, which they develop on their own and that may not result in profits immediately. Also the whole industry is changing to programmatic advertising and as you know we can’t expect to get profits immediately in new areas, so BCG may have tested that and they may need time to adapt to that.

When @bitran brought up the topic about bold-win, he didn’t say that BCG hid something from us and I also didn’t say that BCG is hiding something. All I said was that there’s lack of clarity about few things. There’s a big difference in that.

You are trying to make it a big thing about this. You have posted that I “admitted” about that. There’s nothing wrong in admitting about confusions, like everyone I also have confusions and instead of making it a big thing like you are doing now, I want clarifications on that. Just asking for clarifications doesn’t mean that the company is hiding something. I’ll always comment on things that I know (unlike you) so I want clarifications on those before I start commenting.

Regarding Bold-win, maybe it is like edgecase (Ingress ventures). BCG may have made an agreement to buy equity in that in the future and at present they may provide manpower and technology for that. Yes, there’s no proper information about that and in some cases because of various reasons they may not reveal complete details until some material developments happen. They may not want to hype about something and later when it fails then investors may start accusing them of weird things (just like you are doing now).

As @bitran said BCG may test the waters now and if they succeed in that they may reveal the details.

[Logan]

2>

I still don’t understand how BCG could’ve grown their revenues more, now also I want an explanation for your arguments. Give out more facts and then when you are right I’ll change my views, just repeating the same thing again and again won’t make any difference. From the day one I’m asking you to explain but you have never done that.

If you have proof that the company is siphoning off money then share it with us or better give an official complaint to the authorities, they’ll take action. Nobody has time or energy to think about your “guesses” and weird theories.

The company can lie to us with profit & loss statement but they can’t lie to us with cash flows.
Why Criteo also has not improved its revenue then? There are various factors for that which we both don’t know about.

Regarding comments on MMB and other platforms, people who are commenting are retail investors just like you and me and they don’t know anything about the business, their job is only to comment and they want the company to fix all the problems at once and they want quick solutions for complex problems. That doesn’t happen in business, it’s not easy to run a business. Taking their opinions is waste of your time, you won’t get anything from it. If they are genuine then no problem but they keep repeating the same thing again and again even after addressing those issues (just like you).

[Logan]

1>

@Logicalspeak, Now I’m understanding your intentions, you want everyone not to think logically and you want them to make up conspiracy theories just like you.

You are targeting me because I debunked all your weird theories and somehow you want to turn everyone against me. Why do you want everyone to hate me? What will you achieve doing that? This is so childish.

If you continue to do this, I may stop writing in this forum and there won’t be anyone to debunk weird theories.

Don’t mention my name ever again in this forum, if you mention my name then I’ll ask the admin to take actions against you. If you want answers ask others and never ask me. But at the same time don’t make up weird theories. It’s really annoying.

You have a clever way of manipulating others’ sentiments and it’s so obvious, at first you accuse the company of weird things and later you write good things about it. You don’t want people to think about your true intentions but it’s so obvious to us. All your posts are the same.

Last time you made up few conspiracy theories about LOC, Consolidation, Buybacks, dividends etc and when I answered all those, you came up with revenue growth and when I answered that also you are coming up with Bold-win, Literally media etc.

[Logan]

@tanv151, great observation and it’s very interesting. Thank you for sharing this information with us.

In one presentation that BCG shared, I read that OneTag and Compass are same. I don’t know which presentation that is but this is an important and interesting question that we can ask the CEO in the next conference call.

[Logan]

@Logicalspeak, I was speaking generally and my response was not directed at you (Only the first para was my reply to you). I understood your post, no problem with that. I should have written 2 separate posts then we wouldn’t have had this confusion.

[Logan]

1>

@Logicalspeak,

On acquisition, BCG works with all the major internet companies regularly. The nature of the ad tech industry is that all the ad exchanges are interdependent. We should remember that Google is also an Ad tech company, close to 70% of their revenue comes from ads so BCG will regularly work with Google. Also most of the Fortune 500 companies are their clients.

Regarding the AI project, my understanding is that Israel is the hub of innovation. All the big companies partner with Israeli companies for different things. The big company provides capital and the Israeli company may provide the technology. If you see Israel is the number 1 country for AI, cyber security etc so all the big players have invested there. Apple, Google and other companies working on autonomous cars have invested heavily in Israel.

BCG has a big presence in Israel, even the AI project that they did was by their Israeli team. So, working on AI with a big company won’t be anything new for them and that may not have much impact if you’re talking about acquisition.

[Logan]

@odysee (#7712), I’ll share my views/opinions and they may not be accurate.

My understanding is this, the bank loan write off that BCG did few years back is totally different from the current asset impairment and that’s because the assets that BCG impaired were in BCG’s control but the assets that BCG wrote off years back were loans taken from banks and that was not in BCG’s control. No matter what, the money has to be repaid to the banks or else they’ll have to face criminal charges but with the impairment they need not pay anyone anything because they don’t have any debt other than the standalone one (Axis). They may take a small hit in the short term but Mr.Reddy said that doing this will help them in the long run.

(The bank loans were taken by LGS as working capital loans and they didn’t collect it back from their clients and BCG had to write off those receivables. If LGS hadn’t taken that loan amount from banks and instead if they used their own money then that wouldn’t have hurt BCG).

As you said, they may have done the impairment to have a clean start with their consolidated subsidiary and the amount is huge because they’ll have to merge all the subsidiaries and of course the assets of those subsidiaries and that may help them to get the LOC.

Since I’m not an expert on accounting, I can’t go deep into it. Someone with accounting knowledge can help us with this or we all should ask the management to hold a conference call to discuss mainly about the business aspects or we can ask them in the AGM.

I don’t know what effect this has or will have on market sentiment because right now the market is more concerned about OAK selling and the recent NCLT episode. Also, the sentiment towards stocks that went up recently is also bad, stock prices of Alok, Ruchi Soya, Birla Tyres and many other companies are also falling and this may have an effect on BCG too.

[Logan]

@Logicalspeak, I think we should inform the company about this. We all should send them mails with that article’s link attached, they still have time to go through the process and I’m sure it will help the lawyers in their arguments.

[Logan]

@hw_tw, this is what Mr.Reddy said in the conference call about the increase in traffic.

“Publishers are seeing a huge upsurge in traffic, a lot of spikes in the traffic. And they are completely redoing. Advertisers suddenly have more alternatives. Pricing has come down, but volumes have increased. So it doesn’t matter because net-net revenues stay put or get better. And it’s always good to have — it’s like stock market, right? If you have more people playing in the stock market, then pricing of trade they try to reduce and net-net, the brokerages make money. Very similar if you want to take an analogy there. That is one thing that we are seeing.”

My guess is that they are reducing their rates to sign more publishers. Going forward, they may sign even more publishers once they get the LOC.

And I don’t think they’ll reveal the complete list of publishers and advertisers to the public due to competitive reasons. They won’t reveal the details officially but they won’t mind if Adauth or Builtwith reveal the list on their respective websites. If we go to BCG’s office in Hyderabad they may show us the list (and also ORIDIAN’s annual report signed by EY).

[Logan]

@LogicalSpeak, great observation (#7641). Whatever I have explained may not be accurate. My explanations are in layman terms and that’s because I’m also a layman. When it comes to accounting/finance, I have learned about things that are necessary to value a stock but I haven’t gone too deep when it comes to learning about day to day operations of the company.

In my opinion, not everything that BCG invests will be profitable i.e. they may buy media space from a reputed publisher which may result in losses, at first they may want to sign with them for the name or they may get profits in the future. Also the costs to buy media space may increase in the next month due to intense competition (they may have to bid at higher prices to get that space). And whatever losses they get that may be offset by other profitable short term investments.

If we check on adauth website, the number of publishers using BCG’s tech is increasing every month so maybe they are buying ad spaces from other publishers to offset some losses. And they’ll also have other expenses right.

Please correct me if I’m wrong. I can talk about general things but it’ll be really hard for me to give proper answers without knowing the day to day operations of the company in detail.
We should ask the company to conduct a conference call to discuss about the operations of the company (if they are okay with it).

If you can explain about BCG’s operations in detail then it’ll be very helpful to everyone in the forum and it’ll help us to ask better questions to the management during the conference calls. Please start a new thread about this, since this thread is for general discussions, there will be many other topics discussed here and will be hard for us to find these posts whenever we need.

[Logan]

Hi T9C, I think Canara Bank has released the pledge on those shares. Even though SBI debt was paid last year, we saw the reduction in pledge percentage only last quarter (60% to 50%). Like SBI, I think Canara also took time to release the pledge.

[Logan]

@odysee, you may have missed including the preferential shares while calculating the book value.

[Logan]

In my opinion giving dividend is a temporary solution but appointing BDO or any other big auditor will be good for the company and the investors in the long run.

Right now the market sentiment is negative and giving dividends won’t fix that and the only way to bring trust and credibility is by bringing in a reputed auditor. Doing that will shut the naysayers, they won’t have anything to say against BCG.

Dividends are good and important but if the company fixes issues with market sentiment first then we need not worry about the stock price.

Stock price reaching it’s intrinsic value and the company gaining the deserved valuation is far better than getting small amounts in dividends.

[Logan]

@Basri, I’m not an expert on accounts so whatever explanation I give won’t do you any good. Let us wait and see what the management has to say about this in the conference call. I think Mr.YSR, the CFO, will explain about this tomorrow.

@brightcominvestor has written well on the subject. I think all the companies should review their assets on a regular basis to avoid massive losses in the future.

[Logan]

1>

Hi Investor_2022, I’ve shared my opinions but please don’t take it for buy or sell calls.

I think the presentation looks great and also it’s very informative. Now we have a clear understanding of what constitutes few items in the balance sheet, all these years they just reported these items as just “loans and advances” or “other”. If they reported the same in Annual Reports, then there wouldn’t be so much confusion.

According to me, writing off some of the assets makes sense, if those assets didn’t produce anything (expected cash flow) then there’s no need to keep them. And these are not small amounts and keeping them would’ve dragged the company’s growth. Now they can focus on growing the business and improving cash flow. It will also help in consolidation of the subsidiaries. I don’t know whether the market will take it as positive or negative but in my opinion this is great move.

I think BDO Global suggested the company to write off these assets and this shows the importance of having a reputed auditor. I want them to appoint BDO for India operations as well, all these years the standalone business was not doing well. We may see improvement in the standalone business if they appoint BDO and also they can give better suggestions on how to handle few issues.

[Author]

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