MENU

Are Blinkx Plc, Roxi Petroleum plc & Dart Group PLC 3 Of The Best Small-Cap Stocks?

Online advertising company Blinkx (LSE: BLNX) has released upbeat news today with its RhythmOne advertising unit signing a deal with DataXu, which is a marketing analytics business.

While no financial details have been provided, the partnership will integrate Blinkx’s programmatic platform, RhythmMax, into DataXu’s Demand Side Platform. This should provide a differentiated offering to advertisers and appears to be further evidence that Blinkx is slowly putting into place the steps required to move into profitability.

Of course, this is not expected to take place in either the current year or next year. As such, it could be argued that there is little reason to buy Blinkx right now, since the most obvious positive catalyst would be a return to a black bottom line.

However, news flow for Blinkx continues to be upbeat and it appears to have a strategy that is sound, relatively simple and could prove to be highly successful. As such, and with a sound balance sheet and price to book value (P/B) ratio of only 0.65, Blinkx appears to be worth buying now ahead of potentially improved financial performance and rising investor sentiment in the long run.

Similarly, Jet2.com operator Dart Group (LSE: DTG) also appears to be worth buying at the present time. It has been a star performer in the last five years, with its earnings increasing at a double-digit rate in each year and allowing the company to increase dividends per share from 1.2p in 2011 to 3.5p in the current year. That is a growth rate of 23% per annum and, with Dart still paying out less than 10% of earnings as a dividend, further rises in the company’s shareholder payouts could lie ahead.

Clearly, Dart is enjoying a purple patch at the present time and in the current year its bottom line is due to rise by 15%. This is twice the market rate of growth and, with Dart’s shares trading on a price to earnings (P/E) ratio of just 13.1, they could continue the rise which has seen them increase in value by a third in the last six months.

Meanwhile, with the oil price fall having dampened investor sentiment in the industry, shares in Roxi Petroleum (LSE: RXP) have fallen by 51% in the last year. While hugely disappointing, the company continues to make encouraging progress, as highlighted by a recent update on its flagship BNG asset.

In fact, Roxi Petroleum’s high hopes for well 143 in Kazakhstan appear to be well-founded, with oil flowing from two intervals and two further intervals having also been identified. While news flow in the short run could prove to be somewhat uncertain, Roxi Petroleum’s P/B ratio of 1.3 indicates that there is significant growth potential on offer during the medium to long term. And, with an appealing asset base, it could prove to be a sound, albeit volatile, investment at the present time.

Of course, there are a number of other small-cap stocks that could be worth buying right now and, with that in mind, the analysts at The Motley Fool have written a free and without obligation guide called 1 Top Small-Cap Stock From The Motley Fool.

The company in question may have flown under your investment radar until now, but could help you to build a great income from your investments and retire early, pay off the mortgage, or simply enjoy a more abundant lifestyle.

Click here to find out all about it - it's completely free and comes without any obligation.

Peter Stephens owns shares of Dart Group. 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.