Are Nanoco Group PLC, Proteome Sciences plc And Vislink plc Heading For The Big Time?

Will Nanoco Group PLC (LON: NANO), Proteome Sciences plc (LON: PRM) and Vislink plc (LON: VLK) provide great growth potential?

| More on:

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.

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.

When it comes to looking for growth bargains, companies in some sort of technological field often come to mind. Here are three that I think could make nice candidates for the coming years, although they’re not without risk:

Very tiny

Nanoco Group (LSE: NANO) is an intriguing proposition. To quote the company itself, “Nanoco leads the world in the research, development and large-scale manufacture of heavy-metal free quantum dots and semiconductor nanoparticles for use in displays, lighting, solar energy and bio-imaging“.

The company has a patented technology for making these little doodahs on a large scale, and the demand for the LCDs in which they’re used can surely only grow — especially as rules restricting toxic heavy metals are imposed.

Now, Nanoco is not expected to record a profit until July 2016, with forecasts suggesting a P/E of 65 for that year on today’s 109p share price — and there are quite a few shorters out there. I wouldn’t buy right now, but I’ll be examining this year’s results.

Biotech

Proteome Sciences (LSE: PRM) develops protein and peptide markers for clinical use, including the diagnosis of things like Alzheimer’s, stroke and cancer. That’s clearly a technology with great potential, but again we’re looking at a company that’s not yet in profit.

Results for 2014 released in May showed a 9% rise in revenue and told us of “strong underlying growth in biomarker services“. And though the year ended with a post-tax loss of £3.6m, chairman Christopher Pearce said he expects to see “strong growth in revenue and news flow in 2015“. With no profit forecast yet it’s hard to value the 27p shares, but Proteome is worth keeping an eye on.

Watching

Vislink (LSE: VLK), a company that develops advanced video technology for the media, law enforcement and defence markets, has not grown as quickly as some earlier investors had hoped. But at 60p the shares have still trebled in five years and have gained 32% in the past 12 months. After a steady climb since the start of 2015, could we be heading for a golden period?

Vislink recorded its first profit in 2012, and by 2014 it beat expectations with an adjusted operating profit of £7.2m from revenue of £61.9m — and paid a decent dividend too. At the time of the report in May, chairman John Hawkins reckoned that 2014 had been “a transformation year“. And with forecasts putting the shares on a P/E of 12.5 this year, dropping to 11.4 next, there might be a transformation in investors’ rewards, too.

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.

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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

Empty Stocks and Shares ISA? I’d snap up these 3 stocks to start with!

Sumayya Mansoor explains how she would start to build wealth from scratch with an empty Stocks and Shares ISA and…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

7.7% yield and going cheap! Why is this unknown FTSE 250 stock flying?

It's no household name, but there's one FTSE 250 stock with a high dividend yield and booming profits that looks…

Read more »

Photo of a man going through financial problems
Investing Articles

I’d stop staring at the Nvidia share price and buy this FTSE 100 stock instead

This writer reckons there is a smarter way to invest in Nvidia today without taking on stock-specific risk. Here is…

Read more »

Young lady working from home office during coronavirus pandemic.
Top Stocks

5 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Young Asian man drinking coffee at home and looking at his phone
Dividend Shares

These 3 FTSE 250 stocks offer me the highest dividend yields, but should I buy?

Jon Smith considers FTSE 250 shares with a very high yield, but questions whether the income is going to be…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Is FTSE 100 takeover target DS Smith a great buy?

A mega-merger between FTSE 100 giants DS Smith and Mondi has the City abuzz. But is there any value in…

Read more »

Young Black man sat in front of laptop while wearing headphones
Investing Articles

The WPP share price dips as profits fall. Here’s why it could be a top dividend buy

I'm starting to think the WPP share price undervalues the stock, especially if the long-term dividend outlook comes good.

Read more »

Black father and two young daughters dancing at home
Investing Articles

A £3K investment buys me 632 shares in 2 stocks for a second income!

This Fool explains how a second income is possible through dividend-paying stocks and details two picks that could help her.

Read more »