Northgate Technologies Ltd:Buy/sell/hold,growth prospects and recomendation,news and results,target price and analysis,views and outlook

Scripscan:Northgate Technologies Ltd
cmp:27
Traded in:Nse-bse

Story:Northgate is a leading provider of internet marketing and advertising technology services, combined with a number of unique products (VoIP, social networking) and high-capacity, highly scalable data centres. It is a beneficiary of the strong secular growth in online advertising due to its online ad agency business, online ad serving technology and multi-pronged aggregation strategy. The company''s business model is straightforward: It aggregates internet traffic from various sites and through various means; monetises this traffic with comprehensive, targeted advertising solutions via its in-house developed ad serving engine; and takes advantage of a more cost-effective approach by operating the data centres and telecom connections. Northgate has three primary businesses: 1. Axill, an interactive ad network with a strong presence in the UK and a growing presence in Asia; 2. Globe7, a leading VoIP-based product/community with a significant presence in China; and 3. Bharatstudent.com, one of India''s fastest-growing social networking sites. The story, however, is about more than just what Northgate is currently doing.Using its data centres, Northgate plans to grow, particularly in Asia, via both new company-owned sites and managed hosting arrangements.So on the business front the company looks damn exciting but it should be prudent to note that these company which once attracted investors at 2000rs is reeling at present levels of 25 odd rs.Maybe there are some hidden negatives which we are not aware off.A high risk-high gain bet.