Breaking News in Case of Northgate Technologies Ltd: The worst is over for the company in Q1FY10, and the stock should move up from here Vertically. The company is coming up with results probably on 30th (or may be 31st) October, 2009.

The morning call Pyramid Saimira Theatres (PSTL) hits the Upper Circuits:

Phoenix International Ltd hits another buyer freeze. Those who have bought this stock hearding my suggestions earlier, must be laughing their way into banks:

Accumulate Energy Developments Ltd before the declaration of the results:

Please note that one of the companies in the race to buy of www.bharatstudent.com, have completed the due diligence process of putting the bids.

This portal (www.bharatstudent.com) belonged to Northgate Technologies Ltd. It is to be noted that www.bharatstudent.com is the 3rd largest social networking web-site, after www.orkut.com and www.facebook.com. The other two companies who are also in the fray (to buy www.bharatstudent.com), is expected to complete the same (due diligence) within the next 15 days time frame.

Then the bids would be opened by the management of Northgate Technologies Ltd, to seal the deal; with the highest bidder eating the cake and the company getting much needed cash for strengthening its business network or making its profit making ventures more strength.

The bids could be higher than earlier thought of, due to improvement of the current business environment, with www.facebook.com doing well.

Thus, www.bharatstudent.com having almost identical business model as www.facebook.com, would now get good valuations. Hence within the next one month we can look forward for the sale of www.bharatstudent.com. This money would be funneled back to the profitable ventures of the company like:

1. Globe 7 (www.globe7.com)--which is ranked among 1000 websites in the world with more than 58 million downloads and available in 10 different languages. It has the world's largest SIP switch facility at London.

2. Ziddu (www.ziddu.com)--It is the world's largest file sharing portal that allows users to interact with others, make friends and build communities. It is available in 16 languages.

3. AXILL (www.axill.com): Its CPA is an in-house development Internet Advertising Tracking tool with tracks from impression to sale. Axill monetizes its web traffic through banner ads, Pop-ups and Video Ads.

THE COMPANY AFTER SELLING BHARAT STUDENT DOT COM, is expected to show better performance in the coming quarters. In the June, 2009 quarter the company went for a massive restructuring exercise writing off bad debts and selling off loss making entities.

The effects of these positive developments are expected to be seen from Q2FY10. The stock according to the market sources is all set to cross Rs.100, within a very short time. Knowledgeable circles in the market are accumulating Northgate Technologies Ltd, before selling of www.bharatstudent.com. The worst is over for the company and hence buy in bulk. Please remember at stock which was once trading around Rs.1500 is now available at around Rs.36--37..which looks absurd; especially when the restructuring is complete in the last quarter.

Moreover, Sanguine Media Services Ltd trading around Rs.3.99 could be dark horse going forward. The company is expected to come up with Q2FY10, results at the end of this month, probably on 31st, October, 2009. The results are expected to be good sequentially and would further improve going forward. The company’s event management section earlier received contract from ICICI Bank and probably from TVS Motors Ltd. The company is focused on rural media coverage.

According to the market sources the stock could cross Rs.11-12 in the next 3 to 4 months time frame. Since the company has very low equity capital and hence, when it starts hitting upper freezes it is very difficult to buy the scrip from the open market. The book value of the shares of the company is Rs.21.88 (Rs.22 approx) against its current market price of Rs.3.99. This essentially means that if the company gets liquidated today, then all of us (shareholders) would get Rs.21.88 per share—less administrative or other charges---doesn’t it look interesting??!! Its price to book is OLNY at 0.18. Can you imagine that the market cap of a BSE listed company is only Rs.5.63 Cr!!

Hence this absurd price of Rs.3-5, cannot remain long—the aberration would be corrected soon. Just buy for 6 months time frame—I am sure your money would get doubled by that time, as the stock in all probability after Q2FY10, results will start to rally again.

Note: These are the excerpts from the Sunday Report sent to Paid Groups.