Are Aminex plc, Premier Oil PLC And Oxford BioMedica plc Set For Strong Recoveries?

Aminex plc (LON: AEX), Premier Oil PLC (LON: PMO) and Oxford BioMedica plc (LON: OXB) are down, but they’re far from out!

| 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.

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.

Beefed up

Up until yesterday, shares in Aminex (LSE: AEX) were down 28% over 12 months, echoing the slump among smaller oil and gas explorers. But a morning spike today of 18% has lifted the shares to 1.45p, after the company reported first gas from its Kiliwani North field in Tanzania.

Production from the field, in which Aminex should have a 51.75% stake after a recent partial disposal, is expected to reach a production level of around 4,000 to 5,000 barrels of oil equivalent per day gross over the next 90 to 100 days — and Aminex expects to receive $10m to $15m per year from the Tanzania Petroleum Development Corporation for it.

Cheap assets

I’d hoped I was close to the bottom when I bought Premier Oil (LSE: PMO) shares at 99p back in September, but the subsequent fall to just 19p reinforced the lesson that no matter how far a share has fallen, there’s still another possible 100% to go. But since then, Premier pulled off what I think was a bit of a coup in snapping up E.ON’s North Sea assets for $120m — it should be cash generative, and will surely be seen as a bargain price in a few years’ time.

Premier shares have more than double since that 19p low, to 44p today (I’m only 55% down, whoopee!) and I see it as a risky but good prospect. The big downer is the company’s net debt, which stood at more than $2.2bn at 31 December. But unlike some others, Premier does not seem to be facing any prospect of its lenders pulling the plug — in fact, they have agreed to loosen Premier’s fianancial covenants until mid-2017, while the company is focusing on debt reduction.

My timing stank, but I’m happy to hold.

Pharma prospects

Oxford Biomedica (LSE: OXB) shareholders won’t be too chuffed when they look back on the 57% price drop they’ve suffered over the past 12 months, but they can perhaps take a little heart today from seeing a 5.7% rise to 5.55p — perhaps in anticipation of full-year results due on 28 April.

The company specializes in gene therapy and cell-based medicine, which is surely the future for many of today’s health problems and is likely to be a field which generates lots of tasty profits. But the problem, as with any other new technology still in the startup “blue sky” days (and I’m minded of fuel cell research, which has been touted for years but is still in its infancy) is that we really don’t know when the big commercial breakthroughs will come and who will profit from them.

Oxford Biomedica is still in the cash-burn phase, has no forecasts for profits yet, and launched a new share placing to generate needed working capital as recently as February — and we really don’t know how much further dilution there’ll be before we see those first profits. There are definite possibilities here, but it’s unquantifiable right now and is not one for me.

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

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Just released: Share Advisor’s latest ‘Hold’ recommendation [PREMIUM PICKS]

In our Share Advisor newsletter service, we provide buy, sell, and hold guidance for our universe of recommendations.

Read more »