Are These The 3 Best Small Caps For Next Year? Blinkx Plc, Monitise Plc And Lgo Energy PLC

Could these 3 small-caps deliver stunning gains in 2015? Blinkx Plc (LON: BLNX), Monitise Plc (LON: MONI) and Lgo Energy PLC (LON: LGO)

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Blinkx

2014 has been pretty dire for investors in Blinkx (LSE: BLNX). After all, the company has begun a transitional period from focusing almost exclusively on desktop to now concentrating on mobile in regard to future earnings growth. Clearly, this is a major change for the business and it is, therefore, perhaps unsurprising that Blinkx’s bottom line has moved into the red, with its share price falling by 88% this year as a result.

Of course, Blinkx can turn things around and, crucially, it has the cash to do so. However, it could take a lot longer than just one year to do so and, as a result, 2015 could be another disappointing year for investors in the company. As such, it may be worth keeping an eye on Blinkx, but keeping your powder dry for the time being.

Monitise

With a blue-chip client base, major corporations as shareholders, and a superb product, it seems as though Monitise (LSE: MONI) is destined for success. However, what it lacks at the moment is profit and, looking ahead to 2015, it’s unlikely that it will come along before the year is out.

While that’s not a major problem for long term investors, since Blinkx operates in a relatively young industry that has excellent long term potential, it means that the company’s share price may fail to perform well over the next year. Certainly, a fall of 60% (as has been the case this year) may be unlikely, but similarly strong gains may not occur until Monitise can move into the black, which is not likely to happen until 2016 at the earliest.

Lgo Energy

With shares in Lgo Energy (LSE: LGO) having risen by an incredible 515% in 2014, it has bucked the trend in regard to a declining oil price hurting the vast majority of its sector peers. A key reason for this has been continued upbeat updates from its Goudron field in Trinidad, where Lgo Energy has just this week confirmed that oil is flowing better than it had previously expected.

Looking ahead, much of the company’s future potential could now be reflected in its share price and, although its latest updates have been very encouraging, it’s unlikely for them to continue to be positive in perpetuity. As a result, and while Lgo Energy undoubtedly has considerable future potential, it could be worth waiting for a keener share price before buying a slice of it.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK owns shares of Monitise. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Here’s how I’m trying to build up my ISA to earn £5,000 in passive income each month

Millions of Britons use their Stocks and Shares ISAs to build wealth and eventually draw a tax-free passive income. Dr…

Read more »

Investing Articles

2 things that could sink the Lloyds share price in 2025

Christopher Ruane sees some strengths in the bank's business model, but a couple of risks make him fear the Lloyds…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Is it time to boot underperforming Fundsmith Equity out of my Stocks and Shares ISA?

Fundsmith Equity's underperformed the MSCI World index in recent years and Ed Sheldon's wondering if there are better options for…

Read more »

Investing Articles

Greggs shares have slumped 21% in 2025. Time to consider buying?

The famed sausage roll maker's share price has had the stuffing knocked out of it in recent weeks. Should our…

Read more »

Investing Articles

Is it downhill from here for Tesla stock?

Christopher Ruane takes a look under the Tesla bonnet and discusses why he'd buy the stock at the right price…

Read more »

Growth Shares

At a record high, is it time to buy or sell FTSE 100 stocks?

Jon Smith considers both sides of the argument as to whether it really makes sense to buy FTSE 100 shares…

Read more »

Businesswoman calculating finances in an office
Value Shares

This FTSE 100 stock’s down 45% in 4 months and the CEO just bought £99k worth of shares

The CEO of a major FTSE 100 business just bought nearly £100k of shares in the company. Edward Sheldon views…

Read more »

Long-term vs short-term investing concept on a staircase
Investing Articles

Tesco’s share price is down 3% from its one-year high despite a strong Christmas. Should I buy on the dip?

Tesco’s share price is up over the year, but there could still be a lot of value left in it.…

Read more »