Shares in software company Fusionex (LSE: FXI) have risen by 10% today after the company released a very upbeat trading statement. It said that the company has made significant progress in securing new client mandates for its big data analytics platform, GIANT, as well as broadening its geographical reach – especially in the Asia Pacific region.
Furthermore, demand for its GIANT solution remains high, with a combination of a sound market position in Asia as well as further investment in R&D aiding its long term outlook. And, crucially for investors, it expects full year results to be ahead of market expectations, which is perhaps the key reason for its double-digit share price rise today.
Such are Fusionex’s growth prospects that it has also announced a placing which has been oversubscribed and has raised £14m to be used for growth opportunities. And, with the company’s bottom line forecast to rise at a double-digit rate in each of the next two years, its shares could continue the momentum which has seen them rise by 32% in the last year.
Meanwhile, Sirius Minerals (LSE: SXX) continues to await the final decision from the North York Moors National Park Authority regarding its proposed potash mine. Clearly, the company has huge long term potential to become a major supplier of polyhalite and it has vast growth potential due to the positive results which have been found in crop studies recently undertaken.
However, before it reaches that status there are a number of hoops for the company to jump through, one of which is obtaining the required approvals for the mine to go ahead. Then there is the issue of financing. With resources companies having taken such a large hit in recent months the appetite among investors for early-stage mining plays may be somewhat smaller than it was a year or two ago. So, while Sirius Minerals certainly has the potential to soar, relatively high risks remain and less risk averse investors may wish to wait until there is greater clarity regarding its long term future.
The last three months have been hugely disappointing for investors in Trinidad-based oil producer LGO Energy (LSE: LGO). Its shares have lost 68% of their value in that time, with a key reason for this being a placing of £1m to be used to speed up the development of its Goudron sandstone programme.
Clearly, the falling oil price has hurt investor sentiment in LGO, but it remains a very appealing long term play. For example, its first sandstone well exceeded management’s expectations and a further drilling programme is now being planned in the current year. In addition, LGO’s financial performance is on the up and its Goudron field could prove to be highly profitable over the medium to long term. So, while its shares are likely to remain volatile and further placings could realistically lie ahead, it has the potential to reverse its share price falls in 2016 and beyond.
