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

Looks like it will give be a multibagger from here given the encouraging and positive commentary by the management with possible listing of brightcom in NSE

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What is the source of Brighcom NSE listing commentary ? In Concall Management mentioned Brightcom is just a brand not an entity/subsidiary for the question why is Brighcom not listed as Subsidiary in latest financials.

They formed new subsidiary LIL Projects no intimation or intent of which is disclosed to shareholders. Currently no operations as they say but are looking for some new projects to be done from this subsidiary

Why do you need over diversification which even does not contribute to growth and form so many shell companies.

Can you imagine how much money was spent or in other way diverted for all the failed products likeā€¦
Yreach, Lycos TV, Lycos Life, APLY (told they have on boarded a customer few quarters back and now says they kept this in back burner as it requires more investment)
A company ordered to settle in Oct-2014 given time till Mar-2016 could not arrange funds and files for bankruptcy to borrow time to arrange funds and they still dont have fund raised as of June-2017.
On the other hand what is the growth/revenue contributed by the investments they made in this time frame like TV/Life/APLY? None

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Watch out for Q1 SHP for surprisesā€¦

Well said Mr. Srikkanth.

SKR can never get his company listed in US markets, even if he does so, that would be the best for Indian investors. Reason is strong regulator in US and not like a deaf-dumb-blind white elephant called as SEBI. Kind of fraud SKR is doing, in US he would have been behind bars for rest of his life.

And based on shp u shared below, it seems Mr. Vijay too wanna get rid of SKR ASAP before both of them are behind bars.

I think these all data (disposal by Viijay Kancharla) is for pledge shares.
It is not like promoter has started selling the shares.
They might be pledging the shares to get funds.

HOW did you get this data? please share with me.
why do you think this is a fraud company? pleasee give some solid reason.
I think promoter have clarify lot matter about all subject.

regarding brightcom listing I read on moneycontrol ,but I guess u r right it canā€™t be listed as itā€™s not a subsidy yet
My understanding is that itā€™s their one of the genuine cash generating website
On visiting brightcom it feels like an amazing website
One of my friend Previously worked with lycos and he was saying that working environment is very nice and management is supportive but then he left as he got job in Chicago .And he never had any troubles in salary
But I am not sure at employee level how can one judge about the ground reality about the finances
I got a vague idea from him regarding the company and thatā€™s why I invested at Rs 7

These are automated disclosures by Depository showing movement of shares in and out of the depository.

For creating new pledge one doesnā€™t transfer shares on a regular basis. These shares are transferred as a collateral to existing pledge.
There will be 2 scenarios for additional margin call

  1. Share price is plunging. This can be ruled out as shares are transferred even when stock is stable/rising.
  2. Not paying interest on the loan availed. I believe this is the reason as AR16 auditor notes disclose company is not regular in paying its loansā€¦ Why does a company not regular in paying loans and cant service debt declare dividend?

I didnā€™t confuse with the disclosures as i have been tracking these from June-2016. Got confirmation from management that these are transferred as additional collateral to existing pledge in concall (Q3 concall i think)

Source:: NSE
RTA disclosure:: (replaced by Depository Disclosures)

Depositary Disclosures::

SKR Pledging increased from 37.86% in Q3 to 44.31% in Q4 as per SHP. There are no disclosures for thisā€¦
I dont know if increasing pledge is mandated to be disclosed like creation/release

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http://corp.lycos.com/wp-content/uploads/2014/11/Q2-LYCOS-Investor-Conference-call-held-on-17th-Dec-2016.pdf

ConCall Questions:

K. S. Reddy:
Sir, kindly tell me what this 321 crores represents or what other current assets represents?
Y. Srinivas Rao:
It is a format given by the SEBI, so we publish the data as per the format. But we will reply in detail into your mail.

K. S. Reddy:
Yeah, thank you.

Moderator:
Thank you sir.
As of now, no caller with questions sir.

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Does anyone have any update on this? I could not find much on their website.In fact the last the last conf call is dated 2016. Not sure why?

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you will find all t conf call on researchbyte .com . It is audio type. Dowln load and hear all audio. make not of it. Daum issue will be settelinf in near furure. legal procedure is taking longer time. white oak will give loan once report of audit of earning will come to them. this done by E& Yā€“Femous and prestigious auditor. company has posted good result EPS IS NEARLY 2/SHARE.

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Multiple red flags
Hence undervalued

This message was posted by one person on another forum, found it to be valuable and hence posting it here.

Head, Salmon, Last three hours I have been going thru the final order given by the arbitration tribunal. I am now 100% convinced that Ybrant has been right all along and Daum has fooled them. It is very sad that ybrant allowed itself to be fooled by Daum appointed managers of Lycos. The crux of the matter is: 1. The price was 6 times EBIDTA with minimum guaranteed price of 20M 2. The EBIDTA was expected to be 6 M as per the operating plan submitted by Lycos CEO. So the balance amount was 17 M 3. The final ebidta came to 9. So daum claimed 9x6=54-20 = 34 as balance. 4. Ybrant says the original 6 M ebidta was based on the operating plan of Lycos CEO and included 3 M from the Yellowstone contract. 5. Lycos CEO jacked up the profits from Yellowstone contract by drastically reducing expenses and bad quality business for yellowstone. He did this just to jack up the edidta. 6. Because of his actions the ebidta for 2010 shot up abnormally but immediately after that yellowstone cancelled the contract and Lycos fell back to poor earnings. 7. Ybrant argued that the Lycos CEO (a Daum appointee) cheated them and so they will not pay. The refused to pay even the balance 17 M undisputed amount, because if the yellowstone abnormal one time profit is removed, the ebidta was only 3 and so the final amount was only 20 M, which they had already paid. 8. Ofcourse Daum claims that Ybrant knew about the abnormal profits of yellowstone contract , as they were getting regular reports from Lycos but kept quiet because they wanted to show high profits to investors for their IPO in India. They claim that half way thru, the IPO was discarded and Ybrant stopped asking them for sales data. I have tried to put the whole order of 30 pages into 3 sentences. Hope everyone understands. My opinion is that it is a case of (a) Ybrant management trusting a CEO who was a Daum appointee and (b) possibly became greedy and did not think enough about the consequences of hiking profits in short term for the sake of valuation. I hope they have learned their bitter lessons. I hope they forever remember how a successful, most admired Ramalinga Raju lost everything because of UNNECESSARY greed. Please be happy with your success. People will admire you for what you have achieved. You dont have to become another Bill Gates. P.S. I am buying more today

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THANKS . tHIS is a very valuble information. if you can provide detail of 30 pages for my study, it is very helpful for me.

The Chapter 11 case has been dismissed by the judge as the Debtor (Ybrant
Digital/Lycos) has failed to demonstrate that the necessary financing was
available to implement its plan.

I am attaching the press release by the company dated 23-Aug-2017 and the
order by the judge dated 22-Aug-2017.

Press Release by Lycos 23-Aug-2017.pdf (179 KB)

Hi Niraj,

On that forum another person asked for the same. Following was the reply given by the member.

I purchased the judgement of 30 pages from pacermonitor.com They have a 14 day trial during which you dont have to pay any monthly fee. But you have to pay 15 cents per page. You can get it for free at pacer.gov, but you need a usa Crediit card . They will bill your card if you download more than $ 15 worth. Let me see how to send it to you.

Copy of the Order Passed by the Judge on 22-Aug-2017

102-1.pdf (16.7 KB)

102-2.pdf (18.3 KB)

Order.pdf (25.5 KB)

so what happens next? effectively DAUM has won and Lycos has no other option than to pay up, right? i donā€™t think they have provided for the entire amount so there will be some hit to there P&L at the very least. But bigger question is whether without the financing they have the cash to pay up?

Thanks for writing. SKR has few options. 1) to get loan from white oakā€“which is in advanced stage,2) to sell patents which lycos have 3) to sell software divison. Recently Skr has given some indication to sell patenst. 4) to collect cashflo as early as possibleā€“ie. they have 750cr to collect at a time.