Concha
Shares in Concha (LSE: CHA) are up 16% today and, during the course of 2014, have risen by a whopping 2838%. That’s a staggering share price performance and now means that the company is valued at around £82 million by the market.
Of course, Concha has significant long-term potential, with it being focused on investing in the technology and media sectors. Both of these areas can deliver excellent returns and, with Concha having recently undertaken a placing, it now appears to be better placed to make further investments and, in the long run, deliver strong returns on investment.
The downside is that Concha remains loss-making and, with its operations being very high risk in terms of investments in small start-up companies often ending in disappointment, its share price performance in recent months may not be replicated moving forward. In other words, success in its investments appears to be priced in, so unless Concha now starts to deliver, its share price could come under pressure.
Circle Oil
Shares in Circle Oil (LSE: COP) are down 13% today and have been relatively weak since the company’s CEO, Professor Chris Green, announced his intention to stand down a couple of weeks ago. Indeed, his eight year tenure has been successful, with the company now producing around 9,000 bopd and 17 million cf/d of gas just a decade after its listing on the stock market.
Clearly, a lower oil price has hit shares in the company during the course of 2014, with shares in Circle Oil falling by 31% since the turn of the year. Furthermore, earnings are forecast to fall in the current year by 20%, although this fall seems to be adequately priced in by the market, since Circle Oil trades on a price to earnings (P/E) ratio of just 5.2.
And, with the company’s bottom line expected to rise by 7% next year, it could mean that shares in Circle Oil are good value at the moment. Certainly, there is considerable uncertainty, but for long term investors who are not risk averse it could prove to be a profitable buy.
President Energy
Also weaker today are shares in President Energy (LSE: PPC), with them being down over 8% at the time of writing. However, this decline follows upbeat news for the company, with the price it will pay to acquire the 100% ownership of the Puesto Guardian concession now being $5.8 million, down from an actual and contingent sum of $17.9 million.
The reason for the lower price is the immediate cash flow requirements of the seller, with President Energy now making a payment of $800,000 to the seller, with the previously agreed deferred consideration of $1.9 million and a 5% contingent overriding royalty being cancelled. Furthermore, President Energy has completed an initial review of Puesto Guardian, which supports its view that there is considerable potential for significant production moving forward.
As such, shares in President Energy could gain momentum, particularly if Puesto Guardian yields positive results moving forward.
Of course, not all shares move as much as Concha, President Energy or Circle Oil over such a short period of time. Indeed, here at The Motley Fool, we’re in favour of finding stocks that can deliver stunning performance over a longer time period.
