As this came up in magic formula of screener, I keep watch on it with its risks and red flags. I can see that it broke the past record of low of 7.0 and falling further down, today touching 6.50 per share. Any new red flags brining down below previous 52 week low or usual pattern of falling down and down?
Disc: invested 1% of PF for tracking and that already down by 15%.
Dear James at present there is no bad news. But suresh reddy has promised the court that within 4-8 weeks he will get the loan of rs 150m$ and inform the court. But there is no news for this matter. I sent male to management for any progress. let us wait for reply.
Thank you @NIRAJ_5761 that you are trying to reach the management. When is that date this 8 weeks coming to an end. ? As per an earlier post on March 14th, I could not see a deadline imposed by the court, hence the question. Does management usually responds to you in the past ?
How you read the news that Y. Ramesh Reddy, Executive Director (Finance) has stepped down from the Board of Directors and will continue as group CFO? That looks like another red flag for me.
I feel it might be a corporate governance related requirement of loanâŚ
sorry i am not running the whatâs up group.
Thanks Niraj â RIIT did add.
I have been tracking lycos for some time now. Below are a few of the red flags I have observed.
According to the Auditors report, the company defaulted on a payment of 3.92 Cr of principle and 35.93 Lakh of interest for the year ended March 2016 even though the company claims to have 58Cr in cash on its balance sheets
The company pays an interest rate of 14-17% on the around 80Cr borrowed while around 58Cr sits in a current account earning close to 0%
3)Although the trade receivables of the company has reduced over the last year, the other current assets have increased by more than 160Cr. There is no explanation for what these other current assets are.However, a look at the 2014 annual report shows that the other current assets is mainly comprised of âother accounts receivablesâ. What these other account receivables are has not been explained.
These other current assets had a balance sheet value of 11.34 Cr on Mar 2012 which has increased to 321.77 Cr as on Mar 2016. An increase of 310Cr in 4 years and greater than the companyâs present market cap
Ajay â can you send the source of the report? A link ? Do you think Lycos revenue numbers and business is Sham ? We all know how Brightcom is well know in itâs space by industry peers? Coming back to BS -+ what are your thoughts about how and from which cash flow did Lycos pay dividend ?
The data for the post was collected from the 2016 annual report of Lycos. A link for the same is http://www.bseindia.com/bseplus/AnnualReport/532368/5323680316.pdf
I donât think the business is a sham, but the management would have to do a lot of explaining regarding balance sheet data and capital allocation framework.
Like last year when they wanted to buy two companies by issuing 2.8Cr additional shares when the shares were trading at a P/E around 3.5. Why would the management want to issue shares 2.8Cr shares when they were clearly undervalued.
Presently, the stock trades at a P/E of 0.8 .If the company is actually generating free cash from its business then ideally it should use it to aggressively buyback stock.I believe that there can be no greater return on investment when shares are repurchased at a P/E of 0.8
Coming to the question of dividend, the total amount paid by the company would be close to 5Cr, which is a payout ratio of around 1.2%. The cash flows required for this dividend are insignificant when compared to larger working capital related issues pointed out earlier.
Ajay â
Yes, buyback would be net +ve.
Dividends - Minuscule but shows +ve intent.
Lets see how they organize their capital structure post Daum settlement.
Siddharth
upadate on lycos case
Hello All,
Thanks to everyone for the discussion on this thread !
I was just trying to find out if there are any Credit Rating Report for Lycos, I didnât find any, any reason for this ?
Thanks,
Vinaya
Lycos have launched a shopping portal for USA users, where buyers can compare prices and go for the best deal.
http://shopping.lycos.com
This will boost the revenue further.
A Shopping has also been provided on the Lycos home page
http://lycos.com
Luckily got this article, which is perfectly suitable on Lycosâs state of affair as on date. Current management is making every effort to hide information from investors and in absence of such information, a stock with a PE < 1 is also risky considering the fact downside probability is 100% loss of capital (though traders speculation may take it to unimaginable upside too).
http://www.valuewalk.com/2017/05/dont-forget-ceo-evaluating-company/
Lycos participating in sports app
http://www.marketwired.com/press-release/breaking-data-corp-and-lycos-launch-new-lycos-mobile-sports-app-2200675.htm
I couldnât understand the problem with lycos ,as itâs generating cash to buy different businesses
It paid 15 million dollars to buy lycos then why everyone is mentioning that the cash is not true and the accounts are cooked
pat 43 crore
result is quite good . profit is 428cr -consolidated in 2016-17year. top line is 2451cr. Eps ia 9.01 per share.
SUMMARY OF LYCOS CONFERENCE CALL.
1 LYCOS will submit update about payment plan to court this week from 5-10 june2017.
Court will give order on 28 june 2017.
2.Fund for settlement of daum issue will be taken from WHITE OAK as a loan.âPLAN -A Alternative plan is there if loan will be not given from white oak. âplan B.
3 DAUM ISSUE will be settled in this month only and SRK is very confident about this matter.
4 Lycos is investing its business for GROWTH. That is why there not diverting cashflow for payment to daum.
5 Company has no plan for buyback but will continue to give dividend.
6 Auditor. Israel subsidy Earn & Yarn is the auditor. For American subsidies or other subsidiaries, there are different auditor for different auditors âlocally available. No subsidiaries result is declared without auditing.
7.Discussion about future trigger for lycos.âfirst is daum issue settlement, lycos sport, media and IOT.
