A key reason for Blinkx’s larger loss last year was its restructuring. This included a number of one-off costs such as a goodwill impairment of over $50m, although Blinkx has been able to reduce its annualised operating costs by over $40m. And with it having a debt-free balance sheet and $78m in cash, Blinkx seems to be well-placed to move forward with its wholesale restructuring.

Looking ahead, Blinkx is confident of delivering profitability in the current financial year. If it’s able to do so then its share price is likely to rise significantly as investor sentiment will most probably improve dramatically. However, while the company’s strategy seems to be sound and core operations now account for over 70% of operations, it may be prudent to await evidence of profitability before piling-in.

Risky but rewarding?

Also rising significantly today are shares in Oxford BioMedica (LSE: OXB). They’re up by around 9%, with the gene and cell therapy group announcing details of the appointment of a sole corporate broker today. Of course, Oxford BioMedica’s shares have traded higher since the recent release of data from two clinical studies that demonstrated dose-dependent gene expression with the company’s LentiVector delivery platform.

Clearly, this is excellent news for the company and investor sentiment has been firmer since its release. And with the company’s results showing that it has a sound strategy in terms of broadening its partnerships and investing in its facilities and headcount, Oxford BioMedica could deliver improved share price performance following its 48% decline in the last year. However, with it expected to be lossmaking in each of the next two years and therefore requiring significant amounts of cash, there may be better options available elsewhere for risk-averse investors.

One to watch

Meanwhile, shares in Intelligent Energy (LSE: IEH) have slumped by around 7% after it announced that it has agreed the terms of a £30m gross fundraising through the issue of convertible loan notes. The full amount has been secured from the company’s largest shareholder Meditor, with Intelligent Energy permitted to seek additional qualifying investors to subscribe for up to a maximum of £15m of the convertible loan notes.

If Meditor’s convertible loan notes are converted then it will give the company a stake of between 58.9% and 72.2% in Intelligent Energy. As such, this will require shareholder approval since it would give rise to certain obligations under the takeover code.

With Intelligent Energy’s future relatively uncertain and investor sentiment being rather weak, there seem to be better risk/reward opportunities available elsewhere. Certainly, Intelligent Energy’s restructuring could improve the company’s long-term outlook, but for now it appears to be a stock to watch rather than buy.

The post Should you buy Blinkx plc, Oxford BioMedica plc and Intelligent Energy Holding plc after today’s updates? appeared first on The Motley Fool UK.

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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.

Mining recovery

After a five-year share price slide of 57%, will Rio Tinto (LSE: RIO) recover? It surely will, and the only real question is when — but if you’re investing in an ISA for several years then the timing really shouldn’t bother you too much. The commodities price slump has led to a bit of a collapse in earnings per share (EPS) for the mining giant in the last couple of years, and there’s a further 50% drop forecast for the current year to December 2016.

But the prices of aluminium, copper, iron, gold are picking up again, and along with that should come an upturn in Rio’s fortunes. In fact, since 20 January, the share price has already gone up 26%, to 1,990p. And the City’s analysts have a recovery in EPS pencilled in for 2017 and they’re putting out a strong ‘buy’ consensus on the stock.

When Rio revealed full-year results in February, we heard that its progressive dividend policy is to be curtailed and that the payout should drop by nearly half in 2016. But that would still yield around 4.5%, and it is surely in the best long-term interests of shareholders as the firm continues to cut its costs. Yes, I see Rio as an attractive ISA buy now.

Minerals punt

There’s something a good bit riskier, but possibly very lucrative, in the shape of Sirius Minerals (LSE: SXX), the company at the heart of the York Potash Project. The shares tend to spike up on good news before falling back again, but they’re up 55% over 12 months to 14.7p today, and could well have a lot further to go.

On 17 March we saw the Definitive Feasibility Study, which valued its polyhalite potash development at a net present value of $15bn, rising to $27bn by the time production commences (although that’s not expected until 2021). With the deposits being of such high quality, and with fertilizer in such great demand, it should be a high-margin business too, with cash margins estimated at 70-85%.

So why is Sirius only valued at around £300m? The thing is, oodles of cash will be needed for developing the project before any profits can be made, and there’s a great deal of uncertainty over how much will find its way into the pockets of those who provide the capital and how much will be left for existing shareholders. But if you don’t mind the risk, I think things are looking good.

Too late?

You might think I’m a day late introducing Intelligent Energy (LSE: IEH) as a last-minute ISA candidate, with its shares having spiked up 65% on the day to 16p. But what’s happened? The company develops fuel cell technology, and there are sure to be some big profits for the winners in the field, and today we heard news that should boost Intelligent Energy’s prospects of getting to that magic profitability point.

The company is still in discussions to secure the funding it needs, and though there’s no certainty they will conclude successfully, it seems optimistic, saying it hopes to finalize something shortly. Perhaps more importantly, the board intends to restructure the company to focus on the best market opportunities, which apparently means mainly its “class leading and power dense sub 1W to 20kW air cooled fuel cell technologies which are targeted towards small to medium-sized, highly distributed applications to power a range of off-grid devices“.

Analysts are forecasting first profits in 2017, making Intelligent Energy definitely one to watch.

The post 3 Last-Minute ISA Picks: Rio Tinto plc, Sirius Minerals PLC, Intelligent Energy Holding PLC? appeared first on The Motley Fool UK.

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Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has recommended Rio Tinto. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Clearly, Premier Foods’ share price is highly volatile at the present time and partly because of this, it remains a relatively high-risk play. Furthermore, Premier Foods continues to have a highly leveraged balance sheet and with the prospect of interest rate rises eventually ahead, its profitability could come under a degree of pressure.

However, with Premier Foods trading on a price-to-earnings (P/E) ratio of just 5.6, it appears to have a sufficiently wide margin of safety to merit investment at the present time. While earnings growth of just 3% is forecast in each of the next two years, Premier Foods has a number of highly appealing brands and could deliver improved performance in the long run.

Too many questions for now

Also falling by more than 10% today are shares in CPP Group (LSE: CPP). The international assistance business released its full-year results for 2015 today. But this week has arguably been overshadowed by the requisition made by Schroder Investment Management (acting on behalf of clients who hold more than 5% of CPP Group’s shares), where it called for the replacement of CPP Group’s CEO, Chairman and two other Non-Executive Directors.

According to the company, if the requisition is successful then it will likely have a detrimental impact on the future strategy and performance of the business. And with the FCA stating that CPP Group must demonstrate that management practices and shareholder influence of the past no longer exist, it may be prudent to watch rather than buy CPP Group at the present time. That’s despite the company delivering a substantial improvement in profitability in 2015 versus the prior year, as well as a clear focus on new income generation and growth ambitions.

Wait and see

Meanwhile, shares in Intelligent Energy (LSE: IEH) have fallen by around 80% today after the energy technology company released a disappointing update. It stated that due to recent and unexpected developments in the discussions with various parties, Intelligent Energy will be unable to complete a funding process, in sufficient quanta, by the end of the current quarter. While this is disappointing, more worrying for the company’s shareholders is the fact that Intelligent Energy also states that there’s no certainty an appropriate funding plan can be implemented at all.

Clearly, this news has been negatively received by the market. While Intelligent Energy may still have a bright long-term future, the sheer volatility of its shares at the moment and the lack of clarity regarding its funding position mean that it may be prudent to await more news before considering the purchase of a slice of the company.

The post Should You Avoid Today’s Double-Digit Fallers Premier Foods Plc, CPP Group Plc And Intelligent Energy Holding PLC? appeared first on The Motley Fool UK.

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Peter Stephens owns shares of Premier Foods. 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.

Looking ahead, Premier Oil’s purchase of the aforementioned assets could prove to be a shrewd move. Certainly, North Sea operating costs are apparently higher than in many other regions of the world and this can make it a relatively uncompetitive region while oil prices are so low. However, it also offers stability and high quality assets and so remains an appealing place from which to produce.

Furthermore, the assets are being purchased from existing cash flow and the fact that Premier Oil is embarking on an acquisition strategy shows that it is thinking about the long run, rather than the short term. This viewpoint is crucial while oil prices are low since it should enable companies such as Premier Oil to become stronger relative to their peers in the coming years. And with Premier Oil having a more stable financial outlook than for many of its peers, it could prove to be a strong buy (post suspension) for less risk-averse, long term investors.

Also posting a significant share price fall in the last year is Petra Diamonds (LSE: PDL). Its shares have slumped by 59% in the last year and a key reason for this is a deterioration in the company’s financial performance. In fact, net profit fell on a per share basis by 32% in the last financial year and this trend is due to continue in the current financial year with a fall of 14% being pencilled in.

While such negative growth rates are disappointing, Petra Diamonds trades on a price to earnings (P/E) ratio of just 11.8 which appears to take into account the expected challenges which lie ahead for the business. These include the prospect of further falls in the price of diamonds, as well as the uncertainty which comes with the company’s ambitious expansion plans. In addition, the company’s financial standing remains in question after its lenders agreed to relax borrowing covenants last year. But with Petra set to increase production over the medium term, it could prove to be a strong, albeit risky, buy.

Meanwhile, shares in intellectual property specialist Intelligent Energy (LSE: IEH) have also fallen dramatically over the last year and are now down by 73%. In fact, they have fallen by 50% since the turn of the year even though the company has released positive news flow regarding its acquisition of the energy management arm of GTL, which provides energy to telecoms towers across India.

The £85m deal is now set to go through since India’s competition commission has cleared it. It has the potential to boost Intelligent Energy’s distributed power and energy division and also provide it with a customer base through which to sell its fuel cell technology. Despite this, investor sentiment in Intelligent Energy appears to be on the decline and therefore, it may be prudent to watch, rather than buy, the company right now since it could move lower.

The post Can Premier Oil PLC, Petra Diamonds Limited & Intelligent Energy Holding PLC Go Any Lower? appeared first on The Motley Fool UK.

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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.

As such, it would be of little surprise for them to come under further pressure in the short run from further negative news flow surrounding the Volkswagen diesel scandal. That’s because platinum is a key component in catalysts for diesel cars and, with it gradually emerging that more and more diesel cars are running software which may allow them to ‘fake’ emissions tests, the market is betting that demand for diesel vehicles could wane. As such, the price of platinum is falling and this is causing the outlook for Lonmin to deteriorate.

However, Lonmin could be a sound buy at the present time. Whilst further share price falls are a real threat, the reality is that diesel cars are here to stay. Perhaps some consumers may switch to petrol or even electric cars in the wake of the scandal, but diesels are likely to remain popular among taxi companies, haulage businesses and high mileage individuals over the coming years. So the recent fall in platinum and in Lonmin’s share price may present a buying opportunity – especially since Lonmin trades on a price to book value (P/B) ratio of just 0.05.

Similarly, shares in oil exploration company Falklands Oil & Gas (LSE: FOGL) have fallen by 15% in the last three months on fears surrounding the outlook for the oil price. Certainly, further falls could be just around the corner, but in the coming years it is more likely than not that the oil price will be at a higher level.

That’s because the world economy remains in a strong position and, while Chinese growth may level off to 6% or 7% per annum, that is still many times greater than the growth prospects for the developed world. As a consequence, demand for oil is likely to pick up and, with Falklands Oil & Gas having already enjoyed considerable success at two of the four wells which form part of its 2015 drilling programme, it appears to be in an excellent position to deliver upbeat news flow. With its shares trading on a P/B ratio of 0.6, they seem to be very cheap at the present time, too.

Meanwhile, shares in energy technology company Intelligent Energy (LSE: IEH) have soared by as much as 10% today after it announced an £85m deal to acquire the energy management business of GTL, which is a provider of energy to over 27,400 telecom towers in India. The deal is a positive step for the company, since it provides it with a managed customer base to which it can deploy its fuel cell technology.

Despite this, Intelligent Energy remains a loss-making business but, with the acquisition expected to generate £120m per year in additional revenue and EBITDA margins of around 15%, it could be a major step forward towards profitability for the business. While it remains a relatively risky investment, it would not be a major surprise for its shares to continue their upward trajectory.

The post Should You Buy Shares in Lonmin Plc, Falkland Oil And Gas Limited And Intelligent Energy Holding PLC? appeared first on The Motley Fool UK.

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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.

Intelligent Energy: The Right Tech Name For You?

“British firm Intelligent Energy has claimed a breakthrough in building smartphones that run for a week on a single cartridge,” The Telegraph reported after the market closed on Friday, news of which pushed the stock higher today. “Intelligent Energy has the technological know-how to power your iPhone for a week without recharging.“

What you are buying: The shares of this fuel cell business were listed at 340p in July 2014. Following a 30% rise at one point today, they traded in the region of 114p for an implied market cap of £210m. They have changed hands in the 67p-291p range over the last 12 months. They were priced at 106p at 10.45 BST. 

Opportunity: A top-down approach suggests that Intelligent Energy could be the right tech name for your portfolio, particularly if you believe that hydrogen fuel cells will replace fossil fuels in the automotive industry over the long term. As a matter of fact, many companies have delivered big statements in recent years, yet their so-called value propositions have often miserably failed to live up with expectations. 

Financials: Its financial position doesn’t look too bad. Some 40% of its market value is represented by cash and cash-like items. For the six months to the end of March it had net cash of £58m, and reported negative operating cash flow in the region of £27m on revenue of about the same amount. It’s possible that Intelligent Energy will need more funds to finance its development, given that the run-rate for R&D and operating costs is about £45m annually, although revenue growth is expected to outpace the growth of its cost base. It has options, however, and dilution risk seem to be already priced into its equity valuation. 

My take: The group is unlikely to be in the black for a couple of years at least, but its operating earnings could surprise if its healthy pipeline delivers (that’s a big “if”, of course!) Elsewhere, trading multiples do not provide much help at present, so its shares remain a risky bet — but if you are invested, you’d do well to retain exposure to IEH for the long term at its current valuation. 

San Leon Energy Is a Takeover Target

“The board of San Leon notes the takeover speculation regarding San Leon in yesterday’s press. The board of San Leon confirms that it has received an approach from a possible offeror, that may or may not lead to an offer being made for San Leon,” the group said today.

Its price-to-book value points to a bargain trade, but other trading metrics send mixed signals. 

There have been a few positive news on the operational side earlier this year, yet the stock is down about 40% to 60p in 2015, a level that is not far off its one-year low of 48p.  Exploration costs are meaningful, and so are administrative expenses, its annual results show. 

I doubt the market is willing to take the risk of betting on its stock if the company doesn’t attract new partners or new funding, which suggests that management may accept a lowly offer below 100p a share. That is implicit in San Leon’s share price movement today, I’d say. 

Considering all this, I would give it a pass.

The post Should You Buy San Leon Energy Plc & Intelligent Energy PLC As They Surge Today? appeared first on The Motley Fool UK.

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Alessandro Pasetti 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.