Brightcom Group Limited (Formerly Lycos Internet) - Way to Digitalization

My friend what is being rigged is the stock price of Lycos, lower than where it deserves to trade, just by controlling volumes with money power. And every person who has written positive reviews in America and India are not fakes, so i disagree with you.

Its easy to lose sight of fundamentals in the face of a falling stock price. I read the conference calls of the company last night. This company had a half year Ebitda of 337 crores, talking of cashflows, out of Half Year Ebitda of 337 crores, payments to vendors was about Rs 55.9 crores to reduce the liabilities as per the November 19, 2015 conference call, repayments to bank about Rs 22 crores, bank balance increased by Rs 32 crores, tax to the respective local government was Rs 95 crores, Rs 79 crores during the quarter for the product developments and R&D and for creating intellectual property, all this from cashflow of 6 months. If they are doing this out of 6 month cashflow and you add these figures you will get a sense of how the company is doing. The market cap now is 394 crore, for the entire company. As the stock falls more, it becomes more attractive as an investment. Return on equity is reasonable, pe ratio is attractive. Prabhudas Liladhar investment is positive. Disclosure, holding almost 259,000 shares now as a family, looking to add some more. Will give it a decade, as the company gets stronger with cashflows in the future, pays more dividends, things should improve. Be patient, give the company time, atleast 7 to 8 years.

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The numbers look good… But many pointers point towards cooked books.
DISC: Invested 1.5 yrs. back; Exited after 2 months of digging.

Can you correct me how the cashflow positive debt reduction and investment points i put up are wrong? That means the company is generating reasonable cash and look at the pe ratio right now, you exited, im buying right now. Time will tell.

It is going to Rs 2.5 in next 4-5 months.
I would suggest sell and run when the market is still having a hope about this stock. After that you will be struck because there will be no one to buy this JUNK stock.

Reasons:

  1. Need to pay Daum, around 250 CR, but if you see LYCOS Balance sheet you will see all the profit to be under CWUP(current work under progress). There is no money in the bank.

  2. It is showing growth because private investors have invested $100 million till now. Over that, all the profits earned from growth are further spent on taking in new companies. ie if there is no money pumped then this LYCOS baby would starve and die.

  3. Company have serious corporate governance issues. This is a very bad. That is the reason why mutual funds, reputed FI & DI are even refusing to shit on this stock.

  4. If there was real growth then the company would have been confident of future earnings and given dividends to its investors. But that is not the case becausu it is a pumpped up growth which will only last until you push more and more money in it.

Mbharath unless you dont understand english or you have vested interests against the share, please read this message, and tell me how the company is not generating cash. Also, they have already paid 20 million dollars for daum, they will have the ability to pay the balance with internal accruals, your genuinely dumb if you dont respect the cashflows im describing here, so again, just for you, in english: Its easy to lose sight of fundamentals in the face of a falling stock price. I read the conference calls of the company last night. This company had a half year Ebitda of 337 crores, talking of cashflows, out of Half Year Ebitda of 337 crores, payments to vendors was about Rs 55.9 crores to reduce the liabilities as per the November 19, 2015 conference call, repayments to bank about Rs 22 crores, bank balance increased by Rs 32 crores, tax to the respective local government was Rs 95 crores, Rs 79 crores during the quarter for the product developments and R&D and for creating intellectual property, all this from cashflow of 6 months. If they are doing this out of 6 month cashflow and you add these figures you will get a sense of how the company is doing. The market cap now is 394 crore, for the entire company. As the stock falls more, it becomes more attractive as an investment. Return on equity is reasonable, pe ratio is attractive. Prabhudas Liladhar investment is positive. Disclosure, holding almost 259,000 shares now as a family, looking to add some more. Will give it a decade, as the company gets stronger with cashflows in the future, pays more dividends, things should improve. Be patient, give the company time, atleast 7 to 8 years.

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For 6 months there is a minimum of 150 crore positive cash flow, that is 300 crore for a year more or less hopefully. You are getting the entire company now for 389 crore. Im amazed the market is giving me more shares so cheap, but im not complaining because im sitting on some cash and waiting for a good price to add.

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M-BHARATH619. i SURPRISED WITH YOUR COMMENTS on lycos internet. It seems everybody want to prove that lycos is a fake company and all account are fake. this process goes on since i posted lycos on this forum. I have mentioned lot of details of account and lot of people clarify about. it. It seem nobody wants to believe it.
Nitul bhatia has done good work and mentioned all detail of cash-flow and company has 16 million dollars$ on balance-sheet to pay for daum issue.
comapnay is generating the cash and investing in future business like IOT , E-commerce website etc.
please consider this fact while building your opinion. company kentioned all this thing in confernce call… please study it.

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Has anyone used any of LYCOS products or know any clients of Lycos ?

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Breaking Data Corp stock price after Prnewswire.com‘s article titled: “Breaking Data Corp. and LYCOS Launch New Sports Initiative” and published on September 19, 2016 is yet another important article.

Hi Nooresh, I used their search on the net and its horrible. My dad used it email in the oldest days, hen it was still meant to be USA owned and not Ybrant Digital…

Its a poor company with bad mgmt. and shows all fake B/S and P/L items. Dont buy the results and mgmt. interviews the Reddys give on CNBC. They are not that keen on anything and have a lot of subsidiaries all across the globe to buy different names…

Conclusion: Good for a bounce technically or a trade, but never a idea to go long for the long run

Their main business is digital marketing and not search. Brightcom owned by them is a top ranked company. Please get your facts right before spreading negative news. Its very easy to criticise. This company is making 300 crores cash, it may get its due eventually.

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No Ramprakash, it is not available.

Nitul, what gives me comfort is the fact that it paid close to 200 Cr Income tax and repaid 29 Cr debt. It has approx 86 Cr debt which is not much. What puzzles me little bit is the fact that Promoters had to pledge 5 percent of their holdings for this low debt. Generally promoter pledging is last resort I guess. Also does anyone know by chance when will the 2.8 Cr shares which were to be issued to TritelA Gmbh will be issued?

On page 59 of annual report, following note is there.
In our opinion, and according to the information and explanations given to us with respect to repayment of dues to Banks/financial institutions their status is not standard and the Company has
defaulted in payment to the extent of amounting to Rs. 3.92 crores towards Principle and amounting to Rs. 35.93 Lakhs towards interest.

Anyone has any idea?

I keep getting emails from 3 or 4 websites on the lycos multibagger potential. For whatever its worth here is my two bits. Lycos is using up way more cash then it is making, whichever way you look at it. Thats the opposite of a company with multibagger prospects. In the last ten years its op profit was 1489 cr while its working cap and capex needs were 1626 crores. I cant see how the company is going to be able to walk much less run if its not able to generate cash for itself! Best of luck for those who have invested. Please do your research carefully. If It does turnaround and proves the naysayers ( like me ) wrong, it would be nothing short of a miracle and i would be doubly happy for the investors who reposed faith in the company ( they should certainly be rewarded amply for hanging in there! )

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@bheeshma - it is irrelevant to compare results prior to 2013 when it was a totally different company with different management (LGS Global). Post 2013, it reverse merged with Ybrant Digital, which now forms its core business (Digital marketing ~80% of topline).

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you see result of last 4 years result esp consolidated result. you will find all details of cashflow. comapany has debt of only 85cr and cashflow is almost 400cr.cash is used for development of business and to pay debt.

can you point me to the mar 2016 cash flow statement of lycos internet? i cant seem to locate it