It will be great to check the market value quoted and will this be a competition in B2B to Vaibhav?
VGL is reducing its share of B2B business as explained in latest quarter results. So in long term it wont affect much.
stasta20h
www.businessinsider.com 11
Cable stocks plummet as people bail on TV
Walt Disney Co reported a dip in subscribers for its cornerstone sports channel ESPN and rivals produced a mixed batch of earnings on Wednesday.
My views based on the above news and info share by stasta20h:
The subscriber base going down is a problem for cable TV and MSO operators as they will suffer a gradual fall in subscription fees paid by channel viewers and carrier charges collected from integrated content producers and broadcasters. I believe that this viewership decline will be noticed mainly in the less than 35 year old demographic which is more attuned to web for everything. Now let us not forget that VGL is both a web and TV sales player. In fact streaming of TV content also happens in the web simultaneously. So this way, even those migrating to web will have a chance to view the content. The main issue is, TV usually plays a role in branding of-VGL and acquisition of new customers where as only web based customer acquisition is not so easy in the Amazon world! So VGL should try to penetrate as many households as possible in the short-term in order create awareness about its LC website and m-commerce platform. Once they acquire a good many clients through traditional TV channel route, then brand equity may be sustained through social media, targeted digital advertising, word of mouth etc.
Declining cable TV viewership will be a threat in the short-term for VGL but if it does its act of reaching many households quickly it will gain for the long-term and I believe management is already working on that end. Also, pressure on Cable TV network earnings may in the short term make the Cable TV players to levy more carrier charges from free to air shopping channels in order to compensate for fall in subscription charges in the short-term. However over the long-term they will have no choice but to cut the carrier charges or air-time charges for VGL kind of businesses purely because cable guys will start to look as a old-medium to reach few old and senile customers!
In summary, I believe, for VGL the news that you shared should make them to seriously consider about expanding to other developed markets sooner than later, reach out to USA in full (about 25 million Homes pending) and lock in the customers now ( or at least make aware about LC)- so that when everything and everyone become digital and web-based VGL would have built a strong customer-base for web-sales!
sunil agrawal doesnt takes salary ? how do you know it?
I have sent an email to their Company secretary & following was his reply:
"4.Could you please provide Remuneration of MD/Chairman Sunil Agrawal, as I am not able to find the same in the AR & it is good idea to put Remuneration of all top management persons in the AR for reference & change year on year.
CS: He is not getting any remuneration from the Company."
and even you can check in AR also they have not mentioned any salary drawn by Mr Sunil Agrawal… DO you feel its Positive or Negative??
I don’t understand how this is made out to be such a great thing. There are no free lunches. Too litle or too much pay - both are red flags. Both not fair.
As per the reply of Company Secretary to the queries of a shareholder
The promoters have increased stake from 47.15% to 56.4% in this quarter, an investment of 119 cr.
Supreme vote of confidence in the company’s future.
this is due to conversion of GDR held by promoter companies. promoter holding is ~68% including GDRs held by promoters companies which are yet to be converted.
I was checking ARs prior to 2008 to see if Mr Agarwal was taking salary before company went to financial trouble but it looks like Agarwal never took any salary even in 2006/2007 – this is interesting.
DO you feel its Positive that promoter not taking salary or negative?? I feel its positive, as at even 100 Cr Plus profit if he not taking any salary thats shows that he is not after MONEY ONLY (even when it is not even paying dividend till last year)…
In the detailed write up of Prof Sanjay Bakshi I remember having read that the executives of the company travel in economy class and that the company is not indulged in " restructuring ! " debt . Added together lava thee pointers are towards transparancy and sincerity of the promotor-entrepreneur . However I forsee that the Company is continue to be viewed with skepticism by investing community till it delivers and I cannot blame the investors for that caution . Let us wait , see ,and track for atleast 12 months .
Yuan weakening, Dollar strengthening
Weak Yuan will also cause other Asian currencies to slide. US’ expected Fed action on rate hike will keep Dollar strong for sometime to come. VGL buys its merchandise from China, Thailand, Indonesia and Honkong—so, weak Yuan and Asian currencies will reduce its procurement costs. VGL sells its products to US and a strong dollar is a big positive. This points to further gross margin expansion and favorable exchange rate assisted top and bottom line growth. As a value investor I do not give too much attention to macros but in case of VGL dollar strength is important thing to watch after as it earns its revenues in Dollars and investors track the eps and cash flows in INR.
Related news articles:
Have not seen mention of this class action suit on liquidation channel on this thread:
The Liquidation Channel sued over allegedly false discounts
Also see the full court complaint filing here (dated 28th of May) : class action complaint
surprised that the company has not dislcosed this - I am getting worried with sunil agarwal’s ethical standards. I somehow had a feeling that he had changed after his prosecution in 2006. I have written to the company asking for a clarification.
could you please share the details of this past history of sunil agrawal. it would be very helpful.
disc- not invested but tracking
@sta here is what you askd for. It’s just a google search away – http://www.telegraphindia.com/1060828/asp/nation/story_6667229.asp
This can get serious. I am thinking of selling my holding for two reasons:
- A class-action suit can break this company in the short-term because of fines, and later, because of loss of reputation.
- The promoter hasn’t disclosed this to the exchanges. So his integrity is again in question. I hate to say this but there’s an old English expression that says that a leopard never changes its spots. I hope that this is not the case.
You are right - a class action suit has no capped upside and that can be a disaster for the company.
I sold all my stock today at a 15 % loss. I was disturbed that sunil agarwal broke our trust again by not disclosing it - i wrote a mail and called up the CS - there was no response and the CS had no answer for my direct question.
with people like pulak prasad and tata sky’s vikram kaushik on the board, I wonder what they are doing watching over something like this.
I have a huge soft spot for people who go through a tough time and rebound back - like symphony, hawkins, titan but in my book, hiding things is a no- no. I am fine giving a company time for sales growth to happen etc. but hiding material information like this means that there are more cockroaches in the kitchen.
I am happy to change my mind should facts change.