Pick of the week, Northgate Technologies which is at 52 Weeks Low, nothing to loose from here.

During 13th Dec 2010,      PICK OF THE WEEK: Northgate Technologies (BSE Code: 590057 )

Northgate Technologies principal business is online advertising services, through which the company aggregates, positions and tracks internet ads for online advertising agencies and other advertisers on websites controlled by third parties or by  themselves (collectively, “publishers”) with the goal of increasing awareness and actions through the Internet in respect  of the advertised products.  They  earn revenues based on the number of Internet-user impressions, leads, sales or other actions that these advertisements generate.

Northgate Technologies key own web properties include  www.globe7.com  (“Globe7”), www.bharatstudent.com (“bharatstudent.com”) and www.ziddu.com (“Ziddu”). Currently, operations are run  from Hyderabad and Mumbai in India, also have business centers in UK and Singapore and server farm in the UK.

bharatstudent.com is ranked No. 3 social networking website in India since last three years (Source: comScore) and is  accessed by more than 4.5 million unique visitors a month i.e. nearly 14% of the  Indian internet user base.  Its file sharing networking portal Ziddu is also ranked among world’s top 400 web portals .  Globe7 provides real-time Internet communications, including  Internet telephone services, rich media streaming and  other services, to users who download Globe7 software from our www.globe7.com website.  Globe7 is a tiny  application integrated with SoftPhone, IM, videos, games, news and other opt-in widgets like live TV, live radio,  astrology, forex, movies, pets, recipes, sports for the entertainment, information and communication purposes of its  users.  We earn revenues through Globe7 by placing advertisements on Globe7 and by charging for some Globe7  services and products. Globe7 targets users around the world in English and other languages. They also host private-label  versions of our Globe7 SoftPhone for third-party customers, branding these Globe7 versions with the customer’s trade  name and earning revenues for ourselves through advertisement placement and revenue-sharing with the customer.  bharatstudent.com, a social networking, social utility and social media web portal designed to connect young Indians  across India and abroad. bharatstudent.com creates an online community with the goal of monetizing community information flows through the provision and advertising of services for the student community.

Ziddu  is a 100% free file hosting & sharing enable portal. Ziddu enables unlimited uploads and downloads and file sharing of photos, videos, audios and documents. It is available in 14 multiple languages.  

Northgate Technologies have recently diversified into commodities trading  business. Started commodities trading effective from  September 20, 2010 through our 51% owned subsidiary Green Fire Agri Commodities Private Limited (“Green Fire”)(which is brought for an amount of Rs. 800.33 Lakhs).

Green Fire is a global commodity investment company and currently has the membership of National Commodity &  Derivatives Exchange Ltd (NCDEX), Multi Commodity Exchange of India Limited (MCX) and National Spot Exchange. We intend to create Green Fire’s own electronic communication network (ECN) for global commodities by  connecting to multiple future, Spot Exchanges, e-auction  Platforms, Trade bots processors and Retailers across the  globe in real time using Global Grid Matrix (GGM), High Frequency Trading (HFT) algorithms .

Northgate Technologies operates a gaming portal - Egglad.com and ad network Axill.com.

This year in March, its subsidiary Social Media India, had launched the JNTU Kakinada University Information System and email service in Hyderabad, providing email to 200,000 students and staff.

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Northgate Technologies Ltd has allotted 1.40 crore equity shares of face value of Rs 10 at Rs 20.50 a share to financial institutional investors following the decision to raise funds through qualified institutional placement. While India Focus Cardinal Fund was allotted 47 lakh shares, Albula Investment Fund Ltd and Cresta Fund Ltd were allotted 48 lakh and 45 lakh, respectively. 

Northgate Technologies primarily focused on online advertising segment from the day one. That is the segment which is profitable and the globe is looking forward to that segment always because it is a growing segment.

Northgate Technologies has new business ideas, and foraying into the same, During FY10 they started into Equity trading through wholly owned subsidy VAR Quant Tech securities and due to delay in necessary approvals they have discontinued this business segment for time being.

The company made a Good turnaround in Q2 FY11 results as against losses for several quarters. As a part of restructing its business it has written off loss making ventures. Now Northgate technologies is primarily focusing on Internet advertisement and commodity trading business.

At around around 15+ Rs, there is nothing to loose from the company and as its New business segments will start earning handsome revenues from Q3 FY11, Northgate Technologies price  will reach Rs.50+.