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What is happening to dividend that was approved in AGM on 28th Dec 2020? It’s been over 3 weeks and I have not received any? Anyone has any update on this?

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Preferential Warrant – Approval from Exchange is likely going to take longer given that for the preferential issue to Muskan, they got the approval from BSE in 2 weeks and for NSE approval, they had to wait for about 10 weeks or so.

Given that and seeing what we have been seeing w.r.t Axis/Daum closure being dragged on for almost a year now, I do not think either of this will be closed till the company receives the approval from both exchanges.

We may have to sit tight till Q4 results I guess to see significant price action in this stock..

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This article gives a view of how a given advertising $ is being spent and who gets how much in the programmatic advertisement value chain..

‘There is a big hole in the value chain’: Brands lose 50% of the money they invest in programmatic ads

From quora…
https://qr.ae/pNxv0m

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Ad tech ecosystem overview – informative PPT

http://www.cloudbanter.com/wp-content/uploads/2015/08/AdTech-ecosystem-overview.pdf

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@ buffet
I don’t think warrants would be denied per se since the resolution towards the same has been passed in AGM. It might mean regulators could take some more time to do their due diligence before approving it.

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Update on my earlier post #9744

Day before yesterday I got a call from someone in Brightcom saying that suresh reddy wanted to speak to me and wanted to fix up some time. I thought it was joke. But I did get a call from him last evening on the complaint that I had raised in scores portal. He was trying to understand my concern and I had told him that these allottees being involved in day trading doesn’t feel right and it may not be against the law, but it is against the spirit of it. I also told him that this got reported in the exchange only because the lot size exceeded a given number. Otherwise such trade wouldn’t even have become public knowledge. He told me that he came to know about the trade on that day itself and have spoken with the investor. Per him the investor was trying to check the liquidity by placing a test order and that is all there to it. Since then the investor has been advised against such trades. He also assured that any lock-in period requirements of such holdings would be adhered to.

I did not had any other follow up questions for him on this topic and wanted to update back to you all since I had mentioned about this in this forum.

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Dear @hw_tw

As I had mentioned before, I am not trying to portray digital advertising companies in poor light. Given that all of us are invested in BCG, digital ad tech company and we have a vested interest to see this industry and BCG in particular to succeed. But this article makes some powerful arguments which cannot be pushed away just like that and hence shared them with this group.

I had shared links to 2 articles and both are long enough and would require 30-40 min to read through. Not sure if you had the chance to read both of them fully.

But some of the points being made in this article is that the advertisers do not have a reliable metric to track the effectiveness of digital advertising made – be it search advertising, (referred by you as type 1) ROI based (referred by you as type 2). I am not sure there is really a 3rd type as mentioned by you and exists in the industry. Most of the high tech, big data, AI driven targetted ads (based on reading from these article) are nothing but selection effect where targetted discount coupons for pizza are being handed out to individuals who are already lined up to buy pizza. They would have bought the pizza anyway. But the targetted mechanism proves that they had the coupons with them and hence the sales generated by them is directly a result of successful targetted ad campaign delivered through their platform and the pizza guy has no way of verifying or disputing this claim since he does not have the data/metric from his own source to verify/validate this claim..

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One more interesting read. Don’t think that I am trying to portray the digital advertising companies in poor light. It is only meant to educate ourselves better..

https://thecorrespondent.com/125/the-non-sense-of-online-advertising-when-the-numbers-dont-add-up/267513125-ebeb97f2

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Interesting article on efficacy of digital advertising. Do read when you find time…
https://thecorrespondent.com/100/the-new-dot-com-bubble-is-here-its-called-online-advertising/13228924500-22d5fd24

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I am trying to see the brighter side of this. Preferential warrant allottees – once regulatory approval is received in 2-3 weeks – have to shell out 75 crores as initial amount. This is the money that is going to go out immediately and they do not have a choice of NOT paying this 25% upfront payment. The opportunity cost for them ( they could have easily bought 15 crore shares) from open market between dec 4 and 9 when the share price was averaging around this number without inviting the wrath of regulators. Which means they could have had close to 30% stake of the company, which would give them a liquidation value (they can enforce liquidation of the company with 30% stake if the management is not taking the company in growth path or the growth for the company remains elusive) of atleast 180 crores considering stand alone basis book value based on audited figures.if they are risking losing such an opportunity cost (by having to exercise @7.7 when the share price has not moved much from that allotment price), then they know or have been assured of something that we as retail share holders are not aware of it yet. So, we can definitely hope that things would look up..

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Looking at the SHP, the bigger message is G gang seems to be out(about 7 crore shares) and all the shares came to open market and eventually into retail share holders hands – just like what happened when 3.5 crore shares of Oak were sold in open market back in June 2020. This is concerning that no shareholder with sizeable holding is available to keep the management in check. Not sure if all of them have moved out giving up their hope on management or they knew something that we retail shareholders don’t and they are taking whatever is the best offer that they can get (Given that all these shareholders were with BCG for many years now) in the open market and moved their investment out of Brightcom.

For us retail investors, the prudent thing would be to more vigilant and speak up if something abnormal or out of the ordinary happens to safeguard our interests

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@Diana Horton I am going through this article #4742 – I am not finding anything in the name of compass or Brightcom. What is the SSP name that is owned by Brightcom listed as part of this 72? Also, I see only 40 SSP’s listed in this link

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I am attending AGM through WebEx, but I do not see any attendees..

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Voted No for warrants

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If the stock hits 5% circuit for next two days, would it get moved into T2T segment, where short selling is not possible and one has to take delivery?

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With only about 40% delivery, next few days we are going to see even larger attempt(few crore trading volume early in the day) by the operators to bring down the price since they would have lost huge sum by now and they would try to reverse that in the next couple of sessions. If the buying support (when they dump the shares) is there for next couple of trading session, they would have no other option than to book their losses and wait for another opportune moment and stock price would rise till then

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1.3 crore shares traded within 1 hour today with downward momentum. Looks like operators are trying to take this stock down and despite this level of Volume, stock still managed to bounce back into positive territory. Big players are fighting off in this counter to prop up/ push down…

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Just to give an idea of the kind of delivery based trades on last 10 trading session (Since PW announcement) from NSE alone – 10.75% of entire equity base of BCG (5.46 crore shares) have been delivered. Traded volume is 7.2 crore shares in NSE alone in the last 10 trading session.

Assuming the big hands have not sold their stake, 10.75% of retail shareholders stake has changed hand in the last 10 trading sessions alone (that too only in NSE). It would interesting to know who has picked up this 10.75%. I am sure this level of retail to retail churn is not possible without huge price action. But the price pretty much remained the same except for today.

This indicates systematically some large investor or institution has picked up atleast half of this 10.75%. Keen to see the SHP for this Qtr…

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Given the sudden spurt in volume of trades at around noon on both the stock exchange seems to suggest that nclt hearing has had a definitive closing..Will have to wait and see

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Just now I was checking trade desk financials and it’s valuation. It’s revenue is 80% more than BCG and profit margin is same as BCG and it’s growth rate is better than BCg, but current liability is more than it’s revenue. It’s clear that this business needs tons of cash as working capital. so, for a company in same segment, comparable size, market is paying 200 times forward P/E multiple and still has buy rating from analysts at this valuation.

Comparable figure for Brightcom (back of the envelope calculation) in terms of valuation would be around 2500 rupees. It is clear that BCG has to address the cash flow issue by getting LOC in order to grow (top line) and once it gets the LOC and manages to show the top line growth, value realization should start happening…

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