Is It Time To Buy OptiBiotix Health PLC & Centamin plc After Today’s News?

Shares in OptiBiotix Health (LSE: OPTI) jumped by more than 5% in early trade this morning after the company revealed more detail from last year’s positive clinical study for its cholesterol-reducing capsules.

The study of 50 volunteers was conducted over 12 weeks and showed that those taking OptiBiotix’s capsules saw a 7.2% reduction in so-called bad cholesterol, with the female element of the test group seeing a 12.4% reduction. Among those aged between 50 and 55, there was a 15% reduction in bad cholesterol. Those volunteers with exceptionally high levels of cholesterol saw their levels reduced by an impressive 36.7%. As previously indicated, no safety, compliance or the tolerance issues were reported by volunteers.

The positive clinical data for OptiBiotix’s cholesterol-reducing capsules has been available for some time and as a result, investors have flocked to its shares over the past year. Shares in the company are up 150% over the last 12 months.

But over the long-term OptiBiotix’s shares could yield even greater returns. With an ageing global population and considering the limitations of existing products such as statins, the commercial potential for OptiBiotix’s cholesterol-reducing capsules could be huge. 

The size of the statins market is expected to reach $12.2 billion by 2018 and even if OptiBiotix can only capture a tiny percentage of this market the company shares could be worth multiples of the current price.

A leading gold producer 

Centamin (LSE: CEY) is also on the rise this morning after the company announced that gold production at its flagship Sukari mine in Egypt had increased by 6.5% during the first quarter to a record 125,268 ounces. This increase means the company is now well on its way to hitting its targeted production of 470,000 ounces this year. What’s more, Centamin announced that it has been implementing improvements at its Sukari mine, which should reduce per-ounce production costs. Management has previously said that it’s targeting cash operating costs of $680 per ounce and all-in sustaining costs of $900 per ounce.

It’s easy to see why Centamin’s shares are heading higher today. The upbeat production announcement is just the latest in a series of positive updates from the company, which has consistently under-promised and over-delivered. 

Indeed, even in a harsh operating environment over the past five years, Centamin has increased gold production and remained profitable while many of its peers have struggled to keep their heads above water. Cash costs have been reduced and at the end of 2015 the company remained debt-free and unhedged with cash, bullion on hand, gold sales receivable and available-for-sale financial assets of $230.7m, up around 50% year-on-year.

That being said, Centamin’s outlook remains dependent on the gold price, although the price of gold seems to have stabilised this year. 

If you believe the price of gold is set to head higher, Centamin could be the way to play it. The company’s shares currently trade at a forward P/E of 15.4 and support a dividend yield of 2.2%.

Your own research? 

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Rupert Hargreaves 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.