Are Today’s Movers Eclectic Bar Group PLC, Xcite Energy Limited And Trans-Siberian Gold plc Worth Buying?

Should you buy or avoid these 3 big movers? Eclectic Bar Group PLC (LON: BAR), Xcite Energy Limited (LON: XEL) and Trans-Siberian Gold plc (LON: TSG)

| 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.

The beginning of the pier

Shares in bar owner Eclectic Bar (LSE: BAR) have risen by around 31% today after a resumption of trading following suspension. That was due to a pending announcement that the company has agreed to purchase The Brighton Marine Palace & Pier Company for £18m in cash, after which time it plans to rename itself The Brighton Pier Group.

Clearly, the deal seems to have been well-received by the market and comes not long after Eclectic Bar reported an upbeat set of first half results. They showed that it had made a profit of £300k after making a loss in the comparable period and with the acquisition of Brighton Pier set to substantially improve the company’s cash flow, further acquisitions cannot be ruled out.

While Eclectic Bar trades on a price to earnings (P/E) ratio of 35.8, the acquisition could prove to be a game changer for the business. As such, it could be worth a closer look for less risk averse investors – especially since its management team has a good track record with other successful businesses such as Pizza Express.

Ticking clock

Also moving higher today are shares in Xcite Energy (LSE: XEL). They have risen by around 6% at the time of writing, even though there has been no significant news flow released by the company. Of course, Xcite Energy has caused the market a degree of concern of late since it is due to make a major debt repayment in June.

With the company not yet having been able to find a suitable partner for its lucrative Bentley Field in the North Sea, the clock is ticking and it would be unsurprising for Xcite Energy’s share price to remain volatile in the near term.

Of course, Xcite Energy has been able to increase the net present value of the Bentley Field and has also reduced the costs of production. While this represents significant progress for the company, its future remains highly uncertain and although its shares are up today, it may be prudent to await further news on its long term outlook before buying a slice of the business.

Gold look up

Meanwhile, Trans-Siberian Gold (LSE: TSG) is up by around 17% today despite no news having been released by the company. The Russia-focused gold miner has benefitted from an upturn in the outlook for gold this year, with the price of the precious metal benefiting from slower than expected interest rate rises in the US. This has the effect of making non-interest producing assets such as gold more attractive and with the Federal Reserve being more doveish than expected, further price rises cannot be ruled out.

As a result, shares in Trans-Siberian Gold could continue to rise. However, it remains a relatively high risk play and therefore for risk averse investors, a number of the larger and better diversified gold miners may be more prudent purchases at the present time.

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 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

The National Grid share price nosedived 21% in 2 days! Is it time to take advantage?

The National Grid share price tumbled after the company surprised shareholders by revealing plans to raise more money via a…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Dividend Shares

How I’d try to ironclad my second income before interest rates fall

Jon Smith explains a couple of tactics he's looking to implement in his dividend portfolio to try and protect his…

Read more »

Investing Articles

The FTSE 100 still looks cheap to me. But don’t just take my word for it!

The FTSE 100 (INDEXFTSE:UKX) has increased 7.5% since the start of 2024. But I think there’s evidence to suggest that…

Read more »

Investing Articles

What should the Vodafone share price be? Here are 3 possible answers

Our writer uses a number of popular financial measures to come up with an estimate of a fair value for…

Read more »

Investing Articles

Here’s how much I’d have if I’d bought 1,000 shares in this FTSE 100 defence stock 5 years ago

I could have made a pretty penny investing in this leading FTSE 100 defence stock. Now I’m looking at a…

Read more »

Investing Articles

1 potential millionaire-maker UK stock I’d like to buy for the long haul

For long-term investors, here’s 1 UK stock to consider buying right now with the potential to help power a growth…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

These cheap UK shares look way too good to ignore right now

With the UK stock market reaching new highs recently, this Fool plans to grab these two remaining cheap shares before…

Read more »

Young Woman Drives Car With Dog in Back Seat
Investing Articles

This unloved UK stock could rise 120%, according to a City broker

Some City analysts reckon a once-popular UK stock can recover from its massive recent decline and go on to more…

Read more »