Why Are Lonmin Plc, Oxford BioMedica plc & Bango plc Among Today’s Biggest Gainers?

Should you buy or sell these 3 major gainers? Lonmin Plc (LON: LMI), Oxford BioMedica plc (LON: OXB) and Bango plc (LON: BGO)

| 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.

Shares in Lonmin (LSE: LMI) have soared by over 5% today after the mining company announced the appointment of a new CFO. Barrie van der Merwe will take over on 17 May and the market seems to have welcomed this prompt decision by the company following the resignation of Simon Scott.

Clearly, this is a time of major change for Lonmin as it seeks to implement an updated strategy in response to exceptionally difficult trading conditions. As part of this, it is restructuring its business and also seeking to cut costs; both of which are likely to have a positive impact on Lonmin’s bottom line over the medium to long term. And with Lonmin having the capital through which to effect its new plan following last year’s fundraising, its future seems to be brighter than it was just a handful of months ago.

This increased confidence plus a more stable commodity price environment has led to a rise in Lonmin’s share price of 99% since the turn of the year. This rapid increase could continue, although Lonmin remains a relatively high risk play and may only be of interest to less risk averse investors.

Also rising today are shares in Oxford BioMedica (LSE: OXB), with them being up over 11% despite no significant news flow having been released by the company today. In fact, the gene therapy specialist has not released an update since 7 March when it announced a new and expanded collaboration with Immune Design Corp. Since then its shares have fallen by around 6% but looking ahead, the company has clear potential to deliver profitability.

The challenge for investors, though, is that profitability may still be a long way off. And in the meantime Oxford BioMedica is in a cash burn phase which could require further fundraisings following its £8.1m placing in February. As such, and while Oxford BioMedica has a bright long term future in a very appealing space, it may only be worth a closer look for less risk averse investors.

Meanwhile, shares in mobile payments company Bango (LSE: BGO) have risen by 12% today despite a lack of news flow. Despite this, its shares have still fallen by 60% since the turn of the year even though Bango’s full-year results have showed that it is making progress. For example, it experienced significant growth in end user spend, with the company also doubling the rate of spending through the Bango payment platform. And with a stable cost base, it seems to be well-positioned to move towards profitability.

Of course, the market seems to be somewhat downbeat on Bango’s prospects judging by its recent share price fall. While today’s upward movement could indicate a change in sentiment, it may be prudent to await confirmation of this over the medium term before piling in.

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

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 »

Investing Articles

Investing £5 a day could help me build a second income of £329 a month!

This Fool explains how £5 a day, or one less takeaway coffee, could help her build a monthly second income…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

2 FTSE income stocks investors should consider buying in April

Income stocks are a great way to build wealth. Our writer details two picks she believes investors should consider snapping…

Read more »

Investing Articles

What might the 5-year price chart tell us about BT shares?

Christopher Ruane considers what clues the long-term performance of BT shares might offer him about business performance and whether to…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

Dividend yields of nearly 10%! I’d buy both these bargain FTSE 100 shares

Our writer highlights a pair of income shares from the flagship FTSE 100 index that each yield nearly 10% and…

Read more »