These three shares are among today’s major movers, but does this mean Foolish investors should buy, sell or just watch them at the present time?
Shares in asset and energy support services company Lakehouse (LSE: LAKE) have fallen by around 7% today after it released a somewhat mixed trading update. Its Regeneration division continues to create challenges for the business, with Lakehouse now anticipating that there will be further writedowns during the current financial year as it seeks to close out issues with contract settlements. This is expected to have an adverse impact of £4m on its full-year results.
However, Lakehouse is also experiencing strong underling trading elsewhere in its business and today announced a £37m contract win from Scottish Power to install domestic smart meters across Scotland, Wales and North West England. And with Lakehouse expected to return to double-digit bottom-line growth next year, its shares trade on a price-to-earnings growth (PEG) ratio of just 0.4. This indicates that while investor sentiment may be weak at the moment, there’s good value on offer for long-term investors.
Despite releasing no significant news today, shares in Hornby (LSE: HRN) have risen by 7%. However, they’re still down by 67% year-to-date as the financial strength of the hobby products producer has been called into question by some investors. However, with Hornby having undertaken a successful placing to raise £8m in recent weeks, its balance sheet is now much stronger than it was previously and this lowers its risk profile considerably.
Furthermore, the placing should allow Hornby to execute its new business strategy. This includes a major cost reduction plan as well as a more focused product range. While Hornby intends to keep its main brands, it will also streamline its European operating model and seek to exit unprofitable concessions. Although this strategy seems sound and could work, Hornby continues to offer a very uncertain outlook and therefore it may be prudent to await evidence of a successful turnaround before buying it.
Proton Power Systems
Rising by 86% today is Clean Tech total power solution provider Proton Power Systems (LSE: PPS). It has today announced a major restructuring due to it seeing major growth ahead in the Clean Tech market, with its business set to be split into three segments. These are Stationary business, Mobile business and Maritime business, with Proton expecting to deliver year-on-year revenue streams as the commercialisation of its core technology is now realised.
Furthermore, Proton is on track to increase its sales by 250% this year and due to it seeing proof that the fuel cell technology it offers is commercially attractive to customers, Proton’s long-term outlook is now much more positive. Certainly, it remains a relatively high-risk play, but with clean energy becoming more in-demand and Proton now having a clear structure through which to take advantage of this, now could be a good time for less risk-averse investors to buy it.
But is this an even better buy?
Despite this, it may be a good idea to take a closer look at this 1 Top Small-Cap Stock From The Motley Fool.
The company in question could make a real impact on your bottom line in 2016 and beyond. And in time, it could help you retire early, pay off your mortgage, or simply enjoy a more abundant lifestyle.
Click here to find out all about it – doing so is completely free and comes without any obligation.
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.