[Sobha]

No settlement. 5 cr more paid

[Sobha]

March 2 date given

[Sobha]

@Diana, Please clarify more on the DAUM case. Because what is explained by the company is like this – irrespective of whether lycos is required or not, as it is a deal for 36 million US dollar, BCG has to pay back the balance. The balance is disputed and after long exercise, reached an agreement. We can assume 16 million dollars is the agreed amount. As the parent company BCG has given the guarantee to that, the company cannot escape from that. Everybody knows the amount is there in BCG hands. But the case is not yet closed. Even in the last con call, skr said that – the issue will be settled the next day after LOC. Then how can we say that the long pending issues are over? Why the Daum is silent, I am not getting. A significant amount might have been already paid, but kept away from investors. Please explain.

[Sobha]

Diana, If the amount is below 33 cr, your logic is perfect. They were simply ballooning up the issue with definite purpose.

[Sobha]

Diana, Yes. I do remember. Probably the amount is 2 or 3 crore more than 33. Because total demand of axis was near to 40. For that 2 or 3 cr they are extending the case for 6 months.

[Sobha]

The point is – promoter want to elongate the issue even at the cost of finance of the company. If the OTS was timely paid – the sum remaining was 11 crore. But they failed. Everybody knows – capacity to pay 11 cr is not the issue – Then axis started asking near to 35. Now the issue is elongated to give a serious upper hand in negotiations for Axis.

[Sobha]

Diana, Technically BCG said, the PW was for – ‘settling financial obligations of the parent company’ – For that matter, even DAUM amount is an obligation of parent.

[Sobha]

My memory is like follows.. I think I have see NCLAT order… Axis asked for parking the 33 cr with their account. Court rejected that. But asked BCG to keep frozen the amount in different account. From then onwards – both the parties started saying – they are in talks to reach to an agreement – and for the last 6 months, they are vey near to agreement as per claims. Axis also played in tune with that. Probably a combined drama.

[Sobha]

Make complaint. My zerodha account linked to Axis received dividend on February 5th noon.

[Sobha]

Do you think that in a scenario where the promoter is increasing the stake, big holders like Goenka would have exited? Whenever the promoter is buying, it will only increase the share price. If the management was buying at that time they could have managed to get some 6 or 7 crore. Undoubtedly not 34 crore. They could have increased their stake up to 55%. not more than that through such attempt.

The second point raised is regarding the funding capacity of the promoter. I do also think that the promoter don’t have money. How they will manage is already explained.

Let me explain with an example. Out of the 34 crore, consider 30 crore for investment and 4 crore for fundraising. The 4 cr shares they are purchasing for 30 crore. let’s consider that 4cr shares, they will sell for 100 per share. After 6 months this can be easily done by handing over the same to some fund houses. Probably to his assured big investor. Then he will get rs 400 crore. Out of that 370 crore is profit. That 370 crore will manage the entire purchase. So the entire 30 cr share has been managed to get free of cost.
Another doubt also in this connection we have to keep in mind. Already the LOC might have got. He could have easily used 300 crore from that to manage for six or seven months for this entire drama. Otherwise also a company with 3000 crore rs turnover can manage 260 crore rupee for some months.

[Sobha]

@Valuebuyer, I fully agree with you. Having said that one more point I would like to say. Retail shareholders also have an important role to play sometimes in the growth of a company. We often ask to the promoter in conference calls about the business prospects and the status of the cases. But in this case the promoter is a seasoned businessman and all things he manages very well.

Actually he is very poor in his understanding on the role of moral characters in growing business like any other thing. I do doubt that whether we have made that aspect a point of discussion adequately.

In our retail shareholder community there are three groups of people broadly.The Largest in number, the newer group who has ended after 2017, may not feel much frustrated. Their entry price is sub 8 rupees. for them BCG has already given returns near to any other small cap stock in an unfavourable market. There is another big group who has entered around 2013-14-15, whose entry price is about 30. Some of them were lucky to average to an extent. The third group is continuing from the above 100 levels onwards. The second and third group are in deep pain. They were observing the minute details of the company for the last 8 or 10 years. Again and again the promoter assured them -the LOC is coming; growth is coming, extra. Now LOC and lycos returning is nearby. But the entire benefit of that is stolen by the promoter. To steal the same, such an atmosphere has been created in which many retail and even big holders were pushed out at 95% loss. Now everybody is cursing the promoter.

I don’t have any doubt in the technocratic abilities or business abilities of the promoter. The conduction of daum case is a brilliant example of that. The organisation of the whole company into exclusive subsidiaries is another example.

But extreme growth of a company needs superior moral qualities. Nobody is remembered or respected for the reason that he has stolen large amounts. But people are respected for what they have given to others. More than that when a person is continuously confronted with curses from others, eventually he himself will lose interest in such a growth.

Having said this, I do still believe that the company BCG has got the potential to become the next Infosys. So many profit making subsidiaries were created is a good pointer to that.But the only factor that prevents the company from becoming the next Infosys is the moral qualities of the promoter. I think, we retail have to expose and educate this aspect to the promoter.

[Sobha]

Having said all these, please don’t think that I am negative on the stock. Even after 73% stealing in two episodes, first 6% and then 67%, the share price is massively undervalued.

Further the dilution in stock may not affect the EPS at all with a period of one year. skr himself told in a con cal that the LOC will increase the EPS by 30%. The fresh inflow of 260 crores will increase the EPS by another 15 or 20%. The coming back of lycos will add another 10%. These 3 factors will increase the EPS by 60%. More than that there is probably the unreported earnings. So with a small duration, the present EPS will be maintained.

[Sobha]

For the said reason I do believe that the promoter group is greedy and fraudulent. Till 3 year back there was an international litigation with daum and probably the issue was not in the control of promoter group. But after that the entire elongation of the unsettled issues and the creation of fresh issues was in the interest of the management. The axis case was dealt in this way to purchase time only. Somebody told that the axis has agreed to be paid in last among the three domestic banks due to the personal relationship with axis management the promoter group was maintaining. In that case, probably the case itself is a drama to befool the market.

[Sobha]

Preferential warrents are for getting the share free of cost for the promoter group. 34 crore crore will be allotted to somebody else’s name all of whom are paid proxy. After some months the entire stake will come back to the promoter group either directly or indirectly. The promoter stake will increase to 75 percentage. The total cost involved will be less than 350 crores including some shares purchased from market and commission to the paid proxy. 10 to 15% of the newly allotted share they will dispose at 10 to 20 times of the allotted price. The difference will fund the entire new acquisition. So it will be a a promoter holding increase from 37 % to 70% absolutely free of cost. Even the promoter group may manage to get an amount of pocket money also.

[Sobha]

Above posted by Mindspeaknow in MMB

[Sobha]

According to the method used by Goichi Hosoda in 1930 ( founder of ichimoku charts ) . Once again, after 8 long years, A green cloud crossover has happened in brightcom on a monthly timeframe .A harbinger of things to come . 8 years ago, I had given a buy call on this script when it was languishing at 3 levels. Some might remember my buy call on brightcom ( Ybrant digital) at 3 and marksans pharma at 4 levels . What happened next is very well etched in the memory of all brightcom shareholders, A supersonic move from 3 to 68 levels within just 10 months . The previous move will pale in comparison to the upcoming mother of bull run in brightcom.. Fasten your seat belts, MASSIVE re-rating will happen in this script. The mother of bull run is about to begin here. Let me stick my neck out and make a bold prediction . In the coming 18 months, Be prepared to see 3 digits in this counter. Good wishes . The winter has gone, WELCOME to SUNNY days ahead .

[Sobha]

After 7.5% TDS deduction

[Sobha]

I also received a deposit from DCB Bank and I am guessing its BCG dividend. But my second account has not yet received. Again how much is the TDS? Can somebody answer?

[Sobha]

Diana, Please comment on how the drama is going to end as per your observation on similar fraudulent promoters. Every fraud is different from other is well known. Still there should be some end. I am also an agitated investor of 7 years.

[Sobha]

@explorer, Please don’t aim at person. I am very much critical of promoters and today morning some friend criticised me for terming the management as corrupt.

Having said that there are some other things. In a concall skr told – “EY audited the Israel subsidiary. The papers are in the office and anybody can visit.” Two friends, in different times – Rati and Hitesh certified the claim through the forum after visiting the office.
Skr called everybody. Two friends visited. Whether they should share the information or not? Sharing will help many. But one can doubt also that. Nobody is saying to not doubt or not to be critical. But personally attacking them and questioning their intention so long as somebody is proved misdirecting is not a good thing. That will discourage those who take efforts. On the other hand we should be thankful to the services others are doing. That is all.

[Author]

Posts