Lycos Internet!!!

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by uppu.narayan, Oct 19, 2015.

  1. uppu.narayan

    uppu.narayan New Member

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    Hi Forum Manager,

    Any thoughts on lycos internet, previous quarter revenues around 498cr and EBITA 154.14cr. I don't feel this stock deserve a price of Rs 26.
    Above financial information from below link
    http://corp.lycos.com/wp-content/uploads/2014/11/Q1-FY-2015-16-INVESTOR-PRESENTATION.pdf

    Recently Michael who started lycos the world first search engine which lost the glory and fame to google during the dot com bust has joined the company as independent director bringing his technical expertise in web and robotics.

    They have recently moved into IOT and started their first fitness band which is still in beta version. There is lot of thing happening like their joint venture with apollo for providing ecommerce solution and slingshot energy for energy usage details to home owners (IOT).

    Any thought on this.



    Regards,
    Narayan
     
  2. Value Research

    Value Research New Member

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    The issue with Lycos is solved and now I believe the share is ready to move up.

    The stock price were beaten down because of a court case Ybrant digital(parent company) was fighting with the rival company DAUM.

    What was the issue - Ybrant(parent company) bought Lycos from Daum with 20 million dollars down payment and rest of the payment would be some X times the revenue. So the pending payment came out to be 36 million dollars.

    Lycos refused to pay this amount on the grounds of manipulation of revenues by DAUM appointed Lycos CEO and hence files a court case.

    They lost the case and court ordered to pay 36 million dollars to DAUM. Ybrant files bankruptcy to get time to file a counter case on DAUM.

    Later bankruptcy court asked Ybrant and Daum to settle the case outside the court and moved Ybrant out of bankruptcy.

    Then the US court appointed a sheriff to get the transaction done.

    But Lycos Contributed only 1.2% to the overall profit and 5.6% to the net asset of Ybrant. So paying 250 Cr (36 million dollars) was a bad deal for Ybrant as well as the investors.

    Finally court ordered Ybrant to hand over the share of Lycos it owned(56%) to DAUM.

    So now the company has been renamed as Brightcom, which is their signature brand.

    This court case was the reason of fear to beat down the share prices to Rs 5-6 and now this issue is solved the share price has a good chance to reach its intrinsic value of 60 Rs – 70 Rs at 10 PE.


    “Comments and other perspectives are welcome”
     
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