[Sobha]

Earlier he offered at least a small dividend. when he is declaring that?

Why a financial institution should give a loan (LOC)of 150 million USD to a company having a market capital of 20 million. Why this much duration, If they agrees?
He could have settled with daum from internal accruals and with a higher market capital, subsequently tried for loan for working capital which would have created better chances for LOC. Why not doing like that?

Question of flat results for many years while peers like affle,desk to desk, etc are making huge improvement?

Whether oak wants to exit or not? Because in last con call he said – supply of shares is over.

[Sobha]

thanks for clarification

[Sobha]

Axis debt balance is only 16 crore as per the report to last con call

[Sobha]

Results updated in BSE. Consolidated profit Rs 105.5 crore. EPS 2.21
stand alone to just profit.

[Sobha]

Ian Biden/M4MAX,
It was seen in some forum that, oak fund expiry period is 2020 middle. In that case they have to sell by march.

But the source of the information is not clear. Further, do oak have any other alternative like transferring the shares to some of their other fund or to some other fund houses is also not clear.

Can you provide some more information?

[Sobha]

Agree that your opinion is a probability.

But some facts don’t coraborate.

If so, why they are not making disclosure in annual report?

In the mini conference call, skr said – he is happy to purchase the preferential shares for rs 10. When he was talking of rights issue, he was saying of rs 6.

But it is likely that he may have already reached 50% in binami names.
But preferential issue is a possibility.

[Sobha]

Like many Other investors, I had also invested from 2014 onward. My entry price first was nearly 50 rupees. Later, I started averaging this stock by selling other stocks. Now, 99% of my holding is this stock. Naturally anybody can assume my stress.

Having said that, I have to say something just opposite also. Now I am much more confident than earlier times. There are some reasons for that.

1.There is evidence that the court case has ended in the US. Without some type of agreement between the concerned parties it is not possible. SKR said that they have came to an agreement regarding the amount to be paid. This is a very high possibility considering the ending of the court case. Further in a conference call, SKR said that – the investors will feel happy, once the agreed amount is disclosed, but right now he is not in a position to to disclose the amount. When the US judge asked DAUM to go to the Indian court and fight with the Ybrant India, DAUM judge replied – It is nearly impossible for anybody from outside India to enter into a legal battle with in India. Why Daum came under pressure is answered by this statement alone.

2.The domestic bank loans are in the process of getting cleared; maybe already cleared. There is evidence to that also. If the verbal agreement between DAUM is a lie, it is unlikely that the second part happened.

3.The results in the last few quarters are flat. But the results would be correct considering the number of Impressions that is getting to brightcom, Israel. This can be verified with third party sources. There is a chance that the results are under reported in order to pressurize Daum.

4.The claimed amount by daum is 36 million which is 250 crore rupees. According to SKR the amount is 16 Million or near to 120 crore rupees. There is a logic in keeping the market cap of the company much below the first amount and just near to the second amount for effective bargaining. A company which is having a market capital of 20 million cannot pay loan of 36 million prime facie. Any court also will agree to that.

5. I do have my own doubts about the status of LOC. Because in the modern world a personal loan needs some 3- 4 minutes. Business loan also, some weeks or months. but now in this case, the loan story is reaching 2 – 3 year, if we take the earlier oak story also. Further, from where he is getting a loan is a secret. Nobody can verify that. And more than that, it is unlikely that a loan of 150 million will be available to a company having market capital of 20 million; where the promoters are having a holding of rs 8 – 9 million. He may be playing a trick to bargain with Daum. It is likely that the amount may be paid from internal accruals.

6. Regarding preferential issue also I have my own doubts. First they were saying about rights issue. That was a dilution of the stock. It’s not a good thing where the promoter holding only 40%. Then they dropped that Idea. Then came the new idea of preferential issue. But for preferential issue to be achieved, they have to prepare the story in that way. But here, the resolution to take a loan from the director is not taken in board. The loan is not reported in the annual report. So this part of the story is also doubtful. The story narrated in the court says that the company doesn’t have money. Now if they are paying some loan, they have to show the source of money. Maybe, the director giving a loan is a story to cover that. More than that, When the stock is available for 3 – 4 rupees, why they need preferential shares at 10 rupees?

7. The performance of the stock in the last 2 years is also notable. In 2017 second half, this stock was around 5 rupees. It has made an average 50% correction from then onward. But most of the small cap stocks during this season made a correction between 50 to 95%. This means that, in this season the stock has not under-performed. This was a time when two major holders exited. Still the entire stock is absorbed. We know who purchased that. The previous history of the new entries(Goenkas) make it clear that the stock maybe for a long Bull Run. Anyway, the entry of such people without looking into the fundamentals is unthinkable.
The newly entered people have to exit at some point. This can be at the peak of a bull market. Usually a stock goes into bull run along with general market. So it is reasonable to think that we can expect such a movement along with the next bull run of the general market where the broad market is participating.

[Sobha]

Is it not the 510 crores before tax?

[Sobha]

Thanks for this initiative.

[Sobha]

There was a mini conference call with some retail investors. Once Ian send its sound record. In that SKR claimed that the bank loans are cleared by his personal loan to the company. In return he will take preferential issue. Further indicated, he is happy to buy it for 10 rs.

[Author]

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