for the benefit of the investors in Lycos ( i am not even within hailing distance of being one ), here is a quant report published by Morningstar on 3/1/2017
LYCOS.pdf (64.2 KB)
very well said.Ramprakashs has given link for AR of 2016. Go to Page 96 which shows cash flow.cashflow from operating activity is 4,25,53,46,986/-. you can find out data for yourself.you can also study profit & loss account and Balancesheetā¦
Report you have attached shows cashflow of Rs 528 only. I am surprised.
Ramprakash very well said we can ignore the report.
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my limited point is that the company doesnāt seem to be having any any hard cash leftover. the 2016 AR shows a net cash flow from operating activities of 2,43,70,32,890 which is used by by the investing activities of 2,93,41,65,444 which are investments in āintangibles assets that are under developmentā and āinvestments in non current assetsā. Thats another year gone by without producing any cash.
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Amended Reorganization Plan Filed by Ybrant Media Acquisition Inc.
Dec 16
Ybrant Media Acquisition Inc. filed an amended plan of reorganization in the US Bankruptcy Court on December 6, 2016. As per the amended plan, Daum Unsecured Claim shall be paid in full from available cash. There shall be no other changes in the treatment of any other claim class.
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This is significantly better than the previous settlement offer noted as āReorganization Plan and Disclosure Statement Filed by Ybrant Media Acquisition Inc. Nov 4 16 Ybrant Media Acquisition, Inc. filed a plan of reorganization with related disclosure statement in the US Bankruptcy Court on November 4, 2016. As per the plan filed, Administrative Expense Claims of $0.05 million, United States Trustee Fees of $0.001 million and Priority Tax Claims of $0.04 million will be paid in full in cash. Daum Unsecured Claim of $37 million shall be paid from Available Cash. Non-Insider Unsecured Claims of $0.17 million shall be paid in full in 12 consecutive monthly installments. Insider Unsecured Claims of $2.66 million shall be paid in full in 24 consecutive monthly installments. All of the Interests in the Debtor shall continue in full force and effect; however, the Holders thereof shall not receive any payment or property for and on account of such Interests. The plan will be funded from cash in hand and cash generated from operations.ā
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Hi Bheeshmaā¦ The report seem to be auto generatedā¦ The main core business for Lycos currently is from Bright Com which is an Ad Tech Subsidiary of Lycos.Looking into the report there is no mention about the same and all thats mentioned is that - Lycos Internet Ltd is a search engine company. It is engaged in providing digital marketing services, development of computer software and services.
Absolutely RPā¦ The Mgt dont want let loose news untill the Daum issue is completely settled.They want to come clean of the daum issue. Once this is done, The Mgt wants to be pro active in investors communication and correspondence. The Mgt infact are looking into hiring a Good IR company apart from the Inhouse IR Team they have.Fropm what I understand , the Daum settlement is in the last leg
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Infact When I spoke to the Mgt late Nov , regarding the Bloomberg Report, they let me know that, They didnt want to correspond untill the whole issue is completely settled rather. In retrospect , It rather appears wise that they did not correspond , wherein in contrast to the earlier Bloomberg report , the amendment is far too good , where , the report stated approx 97% settlement with remaining 3 Odd percent settlement over 24 monthsā¦ The current amendment is fab where the doc states complete settlement from the prevailing resources.
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Lycos Q1 Consolidated.pdf (201.9 KB)
Lycos consolidated result for Sep Qtr.pdf (200.8 KB)
The consolidated report for both Q1 and Q2 are definitely profitable in comparison to the past years. The debt has been reduced and I suspect, Its a matter of time, the revival should happen past daum issue settlementā¦
Discussed with management regarding same.Concurred.Further to the daum settlement discussion following the bloomberg post Mgt commented That - On Daum, its a judicial process and dependent on the courts and other parties .Bloomberg gave the current stance on settlement. However, it will not be right for the management to put a forward looking statement or anything out on it, until settlement happens as it`s a Judicial Process.
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The delivery percentages on the balance is averaging 70 for the past 3 weeks, ranging between 68 to 72 on majority of days, without rising the stock priceā¦ Organized accumulation happening ?
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Hi Peetpark, what is this app or website that you are using to check the delivery percentage?
U can get the data on StockEdge App. Its a good app.
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Hi RPā¦ MC sometimes muddles up the percentage delivery and that too u will be getting BSE data only. U can get DP from BSE and NSE site itself which is an absolute reflection, obviously.But Bulk and mega deals can be seen in MC and also in BSE Block Deal data.I have read about this in detail.The Goenka family are one of the three major stake holders of Lycos, in the public domain (PE holders). I suspect they have a contract period of x amount of time for PE funds. Hence, they have exchanged hands the holding scripts between Husband and wife and also within HUF accounts.There was also a rumor that PL was an intermediary (temporary parking untill fund clearance) for XXX investorā¦I am 100% sure whether this is true or false. If PL has definitely entered, with due diligence, in my opinion its a buy call especially with PE of 0.9 at CMP of 8.odd. This Q2 SHP will throw more light on to who has done whatā¦ Based on my observations, There is clear accumulation going on, carefully, without rising the stock priceā¦ The bottom out happened at 7.0ā¦
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Hi RPā¦ Definitely interesting times. Wish to see the SHP for Q2 to see whos accumulating and this can give some direction and some confidence booster. The Delivery has been happening in a very organised basis, in conjunction with the operators who are controlling the price. Its interesting to see that they have managed to keep a Flat 8.1 average, since January 17.
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Lycos Saga by SKR in an investors meetā¦
Initially even I was negative on this stock but later I investigated the company closely on the fundamentals and business frontier and found it to be a good business at undervalued price.
My analysis is as below.
Segment wise Valuation of Lycos Internet
(a) Digital Marketing Segment(Ybrant/Brightcom and subsidaries)
Net Profit = 608.08 CR
EPS = Net profit/ number of shares = 608.08/47.62 = 12.7
Intrinsic value assuming a PE of 7 = 7 * 12.7 = 89 RS
Intrinsic value of Digital Marketing Business of Lycos = 89 RS
(b) Software Development Segment(LGS Global software)
Net Profit = 79.3 CR
EPS = Net profit/ number of shares = 79.3/47.62 = 1.6
Intrinsic value assuming a PE of 7 = 7 * 1.6 = 11.6 RS
Intrinsic value of Software Development Business of Lycos = 11.6 RS
Total valuation = Digital Marketing Business + Software Development Business
= 89 + 11.6
Total valuation = 100.6 RS
Fundamentals from balance sheet:
Liquid cash: 430 CR
Shareholders money in total investment = 82%
Share of Short term debt = 14.5%
Share of Long term debt = 3.5%
For paying RS 250CR ($36.6 million) to Daum the following funds can be used
- Liquid cash for 430 CR can be used
=======================================================================================
Conclusion:
- Its software business alone worth(11.6 RS/share) more the current market price(8.3 RS/share)
- The stock is beaten because of the negative impression around the management
- Force motors stock was also down for a long time because of negativity about management and āporinju veliyathā, the famous value investor, took advantage of this and the stock proved to be a mulitbagger for him in few years.
- Company has good liguid cash and Lions share of business investment coming from share holders
- Strong Software Business from LGS with very respected client base. Strong digital business with cutting edge brightcome technologies and fortune 500 companies and household famous brands as clients.
In conclusion this a business I would like to buy because of huge potential for growth and also huge undervaluation of the business.
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The cash balance on the balance sheet is 58.76Cr. If you are talking about cash from operations that seems to be 243cr. But that seems to be fully consumed with 293crs worth of investments ( 102 crores in subsidiaries and 101 in intangible assets ). There is no free cash whatsoever.
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Hi bheeshmaBheeshma,
Liquid cash is calculated as: Cash in bank + short term loan given(in current assets)
Companies lend the extra money becasue cash is a depereciating asset. By lending the cash they earn the interest and the value of the asset is maintained.
So effectivily the company have 430 CR of liquidity asset as per the latest balance sheet.
I think unless you are fully sure what these āOther Advancesā are - you should avoid considering them as cash until explicitly mentioned. If indeed these āOther Advancesā ( amounting to a sizable 361 crores) are earning the company any interest income then the interest should pop up in the interest income item. As of now i can see only 1.42L as interest income which is minuscule compared to the size of the 361 crores.
The company should make a disclosure as to what these items are in its annual report. Without these disclosures its very risky
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