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

Must read for all stock research enthusiasts.
Found an OPEN LETTER with very valid questions to Mr.Reddy on Brightcom FB post comments section. (https://www.facebook.com/BrightcomGroup/photos/a.210897548944628/2558220404212319/?type=3&theater).

FOR URGENT ATTENTION OF MR REDDY CEO BRIGHTCOM GROUP OF COMPANIES HYDERABAD

Mr Suresh Kumar Reddy

CHAIRMAN & MANAGING DIRECTOR

BRIGHTCOM GROUP LIMITED

(FORMERLY Lycos Internet Ltd)

Subject:

Some important questions for answers in a written response and to be also answered at the coming confrenece call about the annual accounts of the company.

Ref. Shereholders queries about the annual report year ending March 2019

Dear Mr. Reddy,

I am a shareholder of the company holding above 400000 shares.

I have following very important questions for you.I will need a written detailed response and also highly appreciate these questions to be answered at the coming conference call about the annual accounts of the company year ending March 2019.Your answering these questions in detail qill quell investors doubts about the financial health and future of the company and may provide some relief to long suffering long term shareholders of the company.

1… Under point 2 of the auditors report to Brightcom board of directors they have mentioned that the total assets of 14 subsidiaries worth 32233961345 rupee that is above 3223 crores 2. We did not audit the financial statements of all the 14 subsidiaries whose financial statements/ consolidated financial statements reflect total assets before elimination of Rs. 32,23,39,61,345/- as at 31.03.2019 and the total revenue of Rs. 21,32,59,06,216/— for the year then ended which are considered in preparation of the Statement. These interim financial statements and other financial information have been prepared by the management whose reports have been furnished to us, and our opinion on the quarterly financial results and the year to date results to the extent that they have been derived from such interim unaudited financial statements is based solely on the report of the management.Question is why these accounts of 14 companies have not been audited by appropriate accountants.

  1. What is exactly the capital work in progress worth 14778 lakh.

  2. What are intangible assets worth 49984 lakhs

  3. What are the details of other intangible assets worth 49984 lakhs

  4. Under financial assets what are the full details of investments worth 22545 lakhs and what return are they giving.

  5. Financial assets under loans worth 16512 lakhs who has these loans been given to and under what terms.

  6. What are other financial assets worth 1374 lakhs

  7. What is the split of trade receivables of 88977 ;lakhs in terms of the duration that they are over due and when does the company expects to receive them? What action company has taken to improve on this front?

  8. Company has been consistently showing high EPS of 9 rupee or so for the last 4-5 years every year yet shareholders have not been paid any decent dividend . Whereas IT industry of India usual standard is paying 30% of eps as dividend.Why is BRIGHTCOM not paying a dividend of say at least 2 to 3 rupee per annum and when do you think that will happen.

  9. When do you think Daum issue will be finally closed? Do you have any timelines that you can tell the shareholders.?

  10. Liabilities of the sold compamy are passed on to the buyer company including loans unless there is an exclusion clause in the purchase agreement. Hence directors of the sold com[pany are no longer responsible for the loans of the company that Brightcom bought. So bank cant sell the assets of the seller company director which banks have kept as security. That uis my simple and very clear understanding. I have big interest as a shareholder of Brightcom but that is the honest and true position.It pays for a company to sort such issues quickly and wisely to the benefit of the company and its shareholders.

Thank you

and kind regards.

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The company has answered some of these questions in the clarification issued recently but not all. Anyone attended the con call?

Source : https://finance.yahoo.com/news/edited-transcript-lycos-nse-earnings-163700925.html
Disclosure : I have not attended thee con-call.

Please see the PDF attached of the above site.
Edited Transcript of LYCOS.pdf (179.4 KB)

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Any update from todays AGM.

Thanks in advance.

Investor update regarding Canara bank debt clearance.
ref: https://www.bseindia.com/xml-data/corpfiling/AttachLive/05367679-54e1-4b63-b5ec-997e7d1084a7.pdf

Bouncing the scrip up. Developments happening in and for the company. Daum settlement coming up, stock rerating to happen soon.

Experienced and Expert Investors: Please advise on the fresh perspectives for this scrip.

There are a couple of interesting announcements by this company
One compares its capabilities with other competitors

ref: https://www.bseindia.com/xml-data/corpfiling/AttachHis/44c90a08-6f95-4ae5-8aed-079447b33639.pdf

Other Investor Presentation: https://www.bseindia.com/xml-data/corpfiling/AttachLive/e0f4f558-5778-4dcc-a099-0f097a6ffb53.pdf

Any views by experts on valuation of the company ?

I AM HERE WITH ATTACHING NEW PRESENTATION BRIGHTCOM GROUP NEW PRESENTATION.pdf (1.2 MB)

Preferential Issue of shares approved by both BSE and NSE


This brings in a total of approx. 30Crores valuing each share at 10Rs

Current trading price of BCG is 4.8 Rs at close of day today

Next in line announcements:

  • Issue of shares for the Preferential Issue & receipt of 31 Crores
  • Axis bank settlement (9 odd crores) — *** DEBT FREE COMPANY***
  • Daum settlement (Agreement everything in place as per latest Investor updates)
  • Release of Pledge( Already pledge % reduced from 67 -> 50%)
  • BDO report on consolidation (BDO is 5th top auditor after the Big4)
  • New verticals(AI & ML) yet to contribute to revenues
  • Line Of Credit from a US Banker based on the receiveables (amount to 500 + crores)
  • NYSE listing along with competitors like TradeDesk etc.,
  • Dividend(as per the Dividend policy put inplace by the company)
  • Promoter buying(??? )

Looks to me a worthwhile company for investing during this troubled corona times

Request experts who have not looked at this company to pls go through company latest press releases and put your valuable views.

[Investor Updates]

Disc: Invested

Hi Folks!,

For those tracking the Ad-Tech and Digital Marketing space, please go through Brightcom Group (BCG) equity research report by Menasa Research which came out yesterday (research uploaded below).

Please also go through investor presentation by the company from the BSE announcements

Brightcom - Research Report.pdf (790.7 KB)

The report details is also covered by Business Digest magazine by the tag ‘Brightcom Group is well poised to grab the opportunities arises out of Covid-19 pandemic’

https://www.businessdigestmagazine.org/index.php/corporate/item/4048-brightcom-group-is-well-poised-to-grab-the-opportunities-arises-out-of-covid-19-pandemic

Good thought that every company need more capital to grow. but in this case all its standalone business means holding company business is stuck since last almost 5 to 6 year and also not growing

Exacly Hitesh, the growth was stagnant for last few years owing to their inability to raise cash due to long litigation with Daum .

New investor presentation from BrightcomGroup

Adtech is what makes of the Internet tick. Ads are the lifeblood of the
internet, the source of funding for just about everything you read, watch
and hear online. We put the tech in Adtech.

Brightcom’s mission is to make it easier for our partners to maximize yield
and gain exposure across video, contextual, display and mobile channels.
Our ofering is based on a strong technological foundation, deep
consumer reach, years of market experience and a winning attitude.

Also you can find a detailing case study on Hyundai(Italy):

Type: Social Ads CPC
•Clicks: 21,923
•Unique Clicks: 98%
•Primary demographic: Ages 18+
•The campaign offered a revolutionary approach to car buying, 
 where you can return the car if not satisfied
•The Campaign began with a broad demographic. We quickly discovered 
 the best response (over50%) came from people ages 17-24, with good 
 response also from ages 45-64
•The relevant audience showed interest in House Music, football, action 
 movies and books

source: BCG - Announcements

Also this stock crossed 52 week :arrow_up: today

Looks like the number of disclosures and Investor Presentations happening with this company suggest it could be transforming and highly undervalued

Disclosure: I invested in this stock and these are my personal views/opinions

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https://www.indiantelevision.com/mam/marketing/mam/digital-marketing-to-see-an-upsurge-in-advertiser-movement-post-covid-200601?amp

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Hi All,

This seems to be a turnaround around story.But any views about the pledge shares.
That is increasing every quarter now stands at 61.89%(Dec quarter last year)

Thanks,
Deb

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Thank you Sandeep for letting me know that.
The shares are in continous upper ckt,I wonder how it can be bought now.is there a way out?

Thanks,
Deb

Oak India investments sold 36 lakh shares yesterday. As per NSE data. The stock has hit lower circuits after continuous UC. Any views on this ?
Been tracking this stock for educational purpose.

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Hi,

The OAK investors is a old one for Brightcom.I find it difficult to understand why some investors will get out in loss(assuming invested at higher levels) when they know company will do good from now onwards and the share is in continuous upper ckt.Cant they wait for a month atleast when they know they will get more returns what they got today?

Might be they know what is cooking,which we dont.so they took the decision to exit.Above is my assumption and I may be wrong.

Thanks,
Deb

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Companies and promoters who destruct significant wealth of retail investors keep coming back to the markets every few years with new names and newer stories to sell. And a newer set of gullible investors lap up the story. Only to tell their kids or grandkids how they got suckered.

Best thing to do is to stay very clear of such stocks.

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