Reliance Growth fund has got 7% stake in this company.

 

Please share more info & your view anout this potential MuntiBagger.

This company would be good only if they have something really unique to offer.

I collected the following info about this company:

 

Northgate Technologies (http://www.northgatetech.com/) is a Hyderabad based company, has mainly two products:

 

1. Globe7 (http://www.globe7.com/) : Globe7 is the world's first (Patent Pending) VoIP powered Internet TV. Globe7 users can make Free International Calls (Partnered through Verizon) accross the globe by Watching Free Videos in Globe7. They already have more than 20 million downloads of this free product.

 

2. Axill - Online Advertising Exchange (http://axill.com/): Northgate has been defining Media advertisement through Axill Inc., a 100% subsidiary which has established itself as one of the largest and ultimate junction for advertisers and publishers. Axill.com currently has got more than 2400 Publishers and over a 1000 Advertisers.

 

Axill patent pending technology enables to deliver Ads in real time to the Globe7 where they can be tracked from end to end to give the best ROI to the advertisers.

 

 

 

The company in their last Board Meeting has already decided for Private Placement of equities to UBS, Macquarie Bank and some other FIIs at the rate of 497/- per share. Reliance Gowth Fund has already got 7% stake in the company in the month of June.

 

MoneyControl.com has published interview with the CEO about their plans.

 

Please share your views about this company/opportunity.

 

This company looks interesting.

 

As Lalit wrote earlier they have mainly two lines of business.

 

Globe7 and Axill, one provides VOIP and other is a online advertising excahnge.

 

Both are in niche segment and has most of their revenues from US.

 

I am not very sure about the prospects of VOIP business, but their on-line advertising business will definitely pick up.

 

In the first quarter of 2006-2007, though the company shows an increased net profit and EPS, the results are not good.

 

Expenditure decreased by 50%,

Hefty other income of 10.82m

Depreciation is reduced by 50%

Provision for tax is only 20% of the earlier quarter.

The sales has also considerably decreased.

 

I could not get any reason for the decrease in sales.

 

There are a lot many plus points about the company.

 

1. The stock price is constantly increasing for last 18 months.150 to 560.

2. MFs and FIIs are constantly acquring stocks with high premiul. Recently some FIIs have taken stake at 497.28 per share, increasing equity from 18 to 23 crores.

3. Though stock option scheme is there the company is very conservative in allotting stock options.Only 6,00,000 shares allotted under stock option so far.

4.The company is having negligible debt.

5.There are few competitors for their product.

6. Business od on-line advertising through internet is defintely to go up.

7.The remunerations paid to directors incluing charman are moderate, not very high like others in the same segment.

 

There are a few areas which requires a little more probing.

 

1. Two of the directors resigned recently due to personal reasons.

2.  Quality of Management, I could not get the qualification and experience of the Chairman and other directors.

 

None the less , the company should be watchedd closely.

 

If Basant can give his opinion about the stock, it can throw more light on the quality of investment.

 

THanx everybody.