As such, there could be a recovery opportunity on offer for long-term investors. The stock now appears to be cheap, has improving financial prospects and offers a high income return. Of course, it’s not the only share with a disappointing recent performance. Could a smaller stock which released results on Wednesday also offer recovery potential?

Improving prospects?

The stock in question is Hargreaves Services (LSE: HSP). The diversified business which delivers services to the industrial and property sectors reported that trading for the first half of its financial year has been satisfactory. It expects revenue and underlying operating profit to show growth versus the same period of the previous year, with it experiencing improved trading within its UK businesses. It remains on track to meet guidance for the full year.

The company’s net debt declined to £28.6m from £30.8m in May 2018. Further sales of legacy assets are due in the second half of the year.

In the last six months, the Hargreaves Services share price has declined by around 10%. This means that it now trades on a price-to-earnings (P/E) ratio of around 14. While there could be recovery potential ahead as a result of its improving financial outlook, the stock appears to be relatively risky and lacks a wide margin of safety compared to other mid and small-cap opportunities. As such, it may lack relative appeal at the present time.

Return potential

In contrast, the Aviva share price appears to be exceptionally cheap following its recent share price fall. It trades on a P/E ratio of 6.9 using the company’s current year earnings forecast. And with net profit due to rise by 9% next year, it seems to be delivering on its strategy. It is, of course, building for the long term, with significant acquisition activity planned at the same time as it is aiming to use excess capital to reduce overall leverage.

From an income perspective, Aviva may be one of the best opportunities in the FTSE 100 at the present time. The stock has a yield of 7.3%, and is due to raise dividends by 12% in 2019. Further growth could be ahead due to its increasingly generous stance on dividend payments as a proportion of net profit, while a rising bottom line could act as a catalyst over the medium term.

Although there are a number of FTSE 100 stocks which could offer long-term investment appeal at the present time, Aviva’s mix of growth and income potential could make it a strong performer in the coming years. After a tough period, it appears to have significant recovery potential in my opinion.

The post Have £1k to invest? Why I think FTSE 100-member Aviva could soar after its share price fall appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Aviva. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, on some occasions, a company’s share price may have fallen for a good reason. 88 Energy (LSE: 88E) may be one such example, with the stock’s market valuation having declined by 64% in less than four months. The company has endured a disappointing period, with its outlook relatively uncertain.

Challenging prospects

As with any oil and gas exploration company, 88 Energy has required significant sums of investment in order to make progress with its strategy. It recently launched a rights issue as it seeks to boost its financial resources ahead of further exploration activities. One of the problems facing the company, though, is the challenge of turning its potential into revenue and profitability. Flow tests have generally been disappointing, with the accessibility of potential reserves a key issue for the business.

Investors, it seems, are becoming increasingly uncertain about the company’s prospects. Alongside the recent downturn in the wider resources industry, this could mean that the 88 Energy share price remains weak in the near term. Investors seem to be increasingly ‘risk-off’, which could push them towards larger, more diversified and financially-stable businesses in the FTSE 350.

Clearly, the stock has the potential to recover. But given the challenges it has faced, it may only prove to be of interest to less risk-averse investors. Even though its rewards could be high, the near-term risks facing the business continue to be significant.

Improving outlook

As mentioned, some share price falls can create more appealing investment opportunities. One company that could offer an improving share price outlook is Hargreaves Services (LSE: HSP). The diversified company, which provides services to the industrial and property sectors, released a trading update on Tuesday to coincide with its AGM.

The business is on track to deliver on its revised expectations. It has completed the sale of Brockwell Energy, with the net funds of £15m from the deal having been applied to reduce short-term overdraft borrowings. In the current year, it’s forecast to post an improvement in earnings, with a price-to-earnings (P/E) ratio of 13.5 suggesting that it could offer good value for money.

Clearly, the fall in Hargreaves Services’ share price of around 8% in the last year is relatively disappointing. The company has experienced a turbulent period, with one of its customers, Wolf Minerals, having ceased trading. The company, though, appears to be performing relatively well and has the potential to deliver a stronger financial performance in future.

While potentially risky and volatile, the stock could offer a margin of safety. Therefore, for less risk-averse investors who are seeking a possible turnaround stock, it may be of interest over an extended time period.

The post Think the 88 Energy share price is a bargain? Read this now appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Looking ahead though, there could be scope for a successful recovery. As a result, now could be a good time to buy the stock alongside another potential turnaround play.

Challenging trading conditions

The last five years have been exceptionally difficult for UK retail shares. Consumer confidence has come under intense pressure at times, with it generally being negative during the period. The industry has also seen a continued switch away from traditional forms of retailing, with consumers preferring to shop online and in convenience stores. Companies that have been unable to innovate and adapt their business models have generally performed poorly versus their nimbler peers.

Morrisons has also been negatively impacted by increasing competition within the retail sector. The growth of budget retailers such as Aldi and Lidl has caused shoppers to leave major supermarkets, with their increasingly price-conscious outlook at least partly caused by inflation being above wage growth. And with Brexit causing the prospects for the UK economy to worsen, stocks operating mostly in the UK have been hit hard.

Turnaround potential

Now though, Morrisons seems to be on the road to recovery. It’s being helped to some degree by a fall in inflation in recent months, with consumer disposable incomes being under less pressure than they were last year, in real terms. However, it’s also put in place what seems to be a solid strategy that focuses on ramping-up its growth prospects, while improving its balance sheet strength.

For example, the company has expanded online through a deal with Amazon, while an agreement with McColl’s means that the company now has its products in a wide range of convenience stores. Such agreements do not eat up large amounts of capital and yet provide the company with access to growth areas which are much stronger than the traditional supermarket space.

With its bottom line due to rise by 8-9% per annum over the next two years, its shares could generate stronger performance than the FTSE 100 over the medium term.

Improving outlook

Also offering turnaround potential after a difficult period is industrial, energy and property services company Hargreaves Services (LSE: HSP). It reported an encouraging pre-close trading update on Friday which showed its performance during the year has been satisfactory. It expects to report results that are in line with expectations and has made further progress with its disposal programme.

Looking ahead, Hargreaves Services is forecast to post a rise in earnings of 40% in the 2019 financial year. This puts its shares on a price-to-earnings growth (PEG) ratio of 0.4, which suggests they could offer good value for money.

Clearly, Hargreaves Services has endured a challenging period in its recent past. However, with it seeking to restructure its operations and improve its financial standing, it could be worth a closer look for less risk averse investors. A dividend yield of 2.6% is anticipated this year by the market, with an improving income outlook having the potential to boost investor sentiment in the stock – especially since dividends are due to be covered 2.5 times by profit this year.

The post Why has the Morrisons share price underperformed the FTSE 100? appeared first on The Twelfth Magpie.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Peter Stephens owns shares of Morrisons. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended McColl's Retail. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

A turnaround opportunity

Property and energy group Hargreaves Services (LSE: HSP) is midway through a transformation that should see it move out of the coal industry and become a property and renewable energy group.

Although the gradual decline of the group’s coal mining and distribution business has been painful, it’s become apparent that the company owns a lot of valuable land, equipment and coal stockpiles.

Many of these assets have now been sold, while the land is being channelled into alternative energy, industrial and residential developments. Management expects to generate £35m of value from land assets by 2021 — a significant amount for a £115m firm.

Alongside this, the group has continuing operations in the transport and construction sectors, as well as a specialist coal trading operation in Germany, where the industrial market for coal is much stronger.

Available at a 20% discount

Hargreaves published its interim results today. Revenue fell by 12% to £150.3m due to lower levels of asset sales, but underlying operating profit rose by nearly 10% to £2.3m. The group’s underlying earnings per share rose from 0.3p to 2.7p, supporting guidance for full-year earnings of 5.4p per share.

A fall in debt helped to lift the group’s net asset value from 406p to 423p per share. Based on the current share price of 350p, this suggests the group’s shares could climb by at least 20% as value is gradually realised from its assets.

Having followed this stock for several years, I’m comfortable with the company’s projected figures. The group’s guidance to date has been very accurate. Another attraction is that chief executive Gordon Banham owns an 8% stake in the company, so his interests should be closely aligned with those of shareholders.

Trading on a 2018/19 forecast P/E of 15 and with a 2% yield, I continue to rate this stock as a value buy.

This could sail away

Shipping services group Braemar Shipping Services (LSE: BMS) has faced difficult conditions over the last few years. Downturns in both the oil and shipping sectors caused demand for its broking and technical services to slump.

However, both oil and shipping appear to be turning a corner. Braemar has also cut costs and made several acquisitions which will increase the range of financial services it can offer.

Trading has been stable and full-year profits are expected to rise modestly this year. Brokers covering the stock have turned increasingly positive — forecasts for 2018 earnings have risen from 19.6p per share in February 2017, to 21.4p per share today.

This increase hasn’t yet been matched by the share price, which is currently slightly lower than it was a year ago. In my view, this could be a buying opportunity.

Like Hargreaves Services, Braemar has a strong balance sheet with very little debt. I can see no danger of financial distress, and the company’s cash flow has allowed it to continue paying a dividend, albeit reduced.

These shares currently trade on a forecast P/E of 11.5 with a prospective yield of 5.9%. I rate the stock as a buy, and may add more to my personal holding.

The post 2 small-cap dividend stocks I’d buy with £2,000 today appeared first on The Twelfth Magpie.

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Roland Head owns shares of Hargreaves Services and Braemar Shipping Services. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Today I’m going to look at two turnaround stocks from my own portfolio. Both have recently published results. One has already performed very well, while the other has disappointed so far.

This asset play has come good

Hargreaves Services (LSE: HSP) has its roots in the coal business. The group used to mine, trade and transport coal for big UK coal consumers like power stations and steelworks. Unfortunately, most of the group’s one-time customers have closed down, or will do soon.

Over the last couple of years, Hargreaves has gone through a complex and painful restructuring to exit the UK coal business. I’ve built a holding through this period because I thought the stock’s valuation didn’t reflect the underlying value of the group’s property portfolio and other surplus assets.

Chief executive Gordon Banham — who has a 7.77% shareholding — has diversified the business and started to realise value from these assets. Today’s full-year results give a good idea of progress so far, and the potential for further gains.

Underlying pre-tax profit from continuing business rose from £3m to £7.7m last year. Underlying earnings rose from 5.6p to 17.9p per share, while the total dividend was increased from 2.3p to 7.2p per share. Net debt remains modest, at £15.7m.

These results put Hargreaves’ stock on a trailing P/E of 20 with a dividend yield of 1.9%. Clearly that isn’t cheap. So why invest?

This is the opportunity

Hargreaves recently secured planning permission for a large housing development near Edinburgh. It also has a number of other sites with development potential.

According to today’s results, the firm’s property portfolio has a current market value of £49.4m. When combined with the group’s other assets, this gives a net asset value per share of 491p. That’s 29% more than the current share price of 380p.

I plan to continue holding but will keep the position under review. I think Hargreaves’ long-term growth prospects are limited. Much of its value lies in liquidating its surplus assets. So the stock may continue to trade at a discount. I may decide to sell later this year to reinvest the cash in stocks with more growth potential.

I’m still confident

One stock which investors can buy at a big discount to its book value is Barclays (LSE: BARC). This bank has performed poorly this year, losing 6% of its market value while most rivals have made gains. At today’s price of 210p, the shares trade at a 26% discount to their tangible net asset value of 284p.

There’s no doubt that Barclays’ turnaround has taken longer than expected. But I think it has also suffered from poor market sentiment and the underlying performance of the bank is improving. I think the stock remains attractive as a value investment.

The group’s recent half-year results were clouded by some exceptional costs relating to the partial sale of its African business. But excluding these, adjusted earnings rose by 18% to 7.1p per share during the first half of the year.

The bank now trades on a forecast P/E of 11.4 for 2017, falling to 9.5 in 2018. In my view, continued progress should lead to decent gains for shareholders from current levels. I continue to hold.

The post Why I might sell this turnaround stock and buy Barclays plc instead appeared first on The Twelfth Magpie.

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Roland Head owns shares of Barclays and Hargreaves Services. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Encouraging progress

The company in question is Hargreaves Services (LSE: HSP). The diversified property, energy and infrastructure specialist has released encouraging half-year results. They show progress being made towards its three strategic goals.

For example, earnings within the continuing Distribution & Services operations business are set to be within the target range previously set. Furthermore, the company is making progress in creating and delivering the targeted £35m-£50m uplift in value from the Property & Energy portfolio. And with cash realisation from legacy assets also continuing, it appears as though the business is in the process of recording improved financial performance.

Growth potential

Of course, Hargreaves Services remains a relatively risky stock to own. Its profitability has slumped to near-zero in the period, which shows just how large its turnaround project will be. Making it more difficult is the diversified nature of the business. This means there are many risks facing the business, while restructuring and reorganising is likely to take longer and be more complicated than for a pureplay operation.

However, Hargreaves Services is expected to deliver a stunning turnaround. In the current year, its earnings are forecast to double and then rise by a further 43% next year. Despite this rapid rate of growth, its shares trade on a price-to-book (P/B) ratio of just 0.67. This indicates they could rise by 50% and still only trade at NAV, which would be a realistic valuation given the company’s uncertain outlook.

Sector peer

Of course, Hargreaves Services is not the only company in its sector to experience difficult trading conditions. Builders merchant Travis Perkins (LSE: TPK) is expected to report a 1% fall in earnings in 2017, as uncertainty surrounding the outlook for the UK economy starts to impact on its performance.

While this may be the case in 2017, the company’s bottom line is forecast to return to growth of 9% next year. This puts it on a price-to-earnings growth (PEG) ratio of only 1.3, which indicates that it offers a relatively wide margin of safety.

Clearly, Brexit talks could prove to be negative for the economy and cause investor sentiment to come under pressure. In such a situation, Hargreaves Services and Travis Perkins could see their share prices fall. However, the extent of this may be limited due to their low valuations. For long-term investors, now could be the right time to buy both stocks, with Hargreaves Services seeming to have the more enticing risk/reward ratio.

The post This small-cap stock could rise 50% by 2019 appeared first on The Twelfth Magpie.

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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, a wide margin of safety may be required when investing in Hargreaves Services. Its shares currently have a price-to-earnings growth (PEG) ratio of only 0.3, therefore they appear to offer growth at a very reasonable price. While they may remain volatile as the effects of Brexit become apparent, for long-term investors Hargreaves Services appears to be a bargain.

Share price slump

Also reporting today was Clarkson (LSE: CKN). The integrated shipping services provider’s shares have slumped by 17% as it experienced a difficult trading period since its AGM. The ClarkSea index has fallen by a further 10% since the AGM, so that its average level for the first six months of 2016 was 30% lower than for the first half of 2015.

This deterioration in freight rates is due to higher uncertainty regarding the global economic outlook as well as the continuing imbalance between supply and demand in shipping and offshore. Clearly, Clarkson’s outlook is somewhat downbeat and this is reflected in its expected rise in earnings of just 2% this year. However, due to significantly better performance expected for next year, Clarkson has a PEG ratio of 0.7 and this indicates that for less risk-averse investors it could be a sound long-term buy.

Earnings rise

RM’s (LSE: RM) update has boosted its share price by over 4% today. The education software and services company recorded an increase in adjusted earnings of 5.2% in its first half, with strong revenue growth in its Results division partially offsetting reductions in its Resources and Education segments. As such, results were in line with expectations even though the UK education market remains somewhat subdued.

This operating environment is reflected in RM’s forecasts. It’s expected to report a fall in earnings of 5% this year, followed by a rise of just 2% next year. While disappointing, RM’s price-to-earnings (P/E) ratio of 7.6 indicates that it has a sufficiently wide margin of safety to merit purchase right now. Certainly, share price volatility may be high, but profitability for RM’s investors may be impressive in the coming years.

Strong pipeline

Meanwhile, Kier Group (LSE: KIE) also reported today. The property and construction services group is trading in line with management’s expectations since the release of its interim results in March. Looking ahead, it faces an uncertain outlook due in part to the potential impact from Brexit on UK construction. However, Kier believes the breadth of its business activities and strong order book provide both visibility and resilience.

For example, Kier Group’s Property division has a pipeline of projects totalling over £1bn, while its Residential division’s mixed tenure business has a pipeline of over £600m. Due to Kier trading on a forward P/E ratio of only 8.8, it seems to have a sufficiently wide margin of safety to make it an appealing long-term buy. Furthermore, its yield of 6.2% is likely to have huge appeal if interest rates fall over the coming months.

The post Are Clarkson plc, RM plc, Hargreaves Services plc and Kier Group plc buys after today’s updates? appeared first on The Twelfth Magpie.

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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.

Hargreaves Services’ core operations will now comprise coal distribution, specialist earthworks and infrastructure services, industrial services and transport and logistics services. And with Hargreaves Services controlling around 18,500 acres of property across the UK, it plans to create significant medium-term value and cash generation from the development of projects within its property portfolio.

Clearly, Hargreaves Services has experienced a difficult period in recent years, but today’s announcement seems to have been well-received by the market and could indicate the start of an improved period for the business. However, it may be prudent to wait for evidence of improving financial performance before buying a slice of the business – especially since Hargreaves Services trading remains mixed.

Sticking to the timetable

Also reporting today was transport company Stagecoach (LSE: SGC), with its trading statement showing that it’s on target to meet full-year expectations. Although like-for-like (LFL) sales growth of 4.6% was recorded in the company’s Virgin Rail Group alongside LFL growth of 2.5% for Stagecoach’s UK rail segment, it has warned of a challenging future for the division.

That’s because the overall industry rate of revenue growth has slowed in recent months and looking ahead, Stagecoach sees further deterioration over the medium term. It expects weakening consumer confidence, terrorism concerns, sustained lower fuel prices, the related effects of car and air competition as well as slower UK GDP growth to have a negative impact on the industry.

Clearly, this paints a downbeat picture of the company’s outlook. However, Stagecoach continues to offer a fairly wide margin of safety so its risk/reward ratio remains appealing. For example, it trades on a price-to-earnings (P/E) ratio of just 9.2 and with it yielding 4.7%, remains an enticing income and value play for the long term.

Stake sale

Meanwhile, shares in Mortgage Advice Bureau (LSE: MAB1) have slumped by 11% today after it announced that a group of major shareholders is planning to sell a 15% stake in the financial advisory business. With this including a number of senior directors including the Chief Executive, the market has reacted negatively to the news.

With Mortgage Advice Bureau forecast to increase its bottom line by 12% in the current year and by a further 19% next year, investor sentiment could improve over the medium term. And with Mortgage Advice Bureau having a price-to-earnings-growth (PEG) ratio of just 0.9, it seems to offer good value for money. However, with the outlook for the UK housing market being relatively uncertain, it may be prudent to look elsewhere at the present time – especially while investor sentiment in the company is apparently coming under pressure.

The post Don’t invest in Stagecoach Group plc, Hargreaves Services plc and Mortgage Advice Bureau (Holdings) plc until you’ve read this appeared first on The Twelfth Magpie.

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

A look behind the scenes

However, the volatility can mask what’s actually going on behind the scenes, and although most UK shares are off of their highs right now, there are some that are stuck in a downtrend. Sometimes this can be caused by sector-based worries such as a housing bubble getting ready to pop – I think there are general worries in this area currently.

At the same time there are fears that have become reality. We’ve seen plenty of evidence of this following the collapse of the oil and gas price. This has been widely reported in the media, however there have been fewer reports of the negative sentiment in the wider commodity sector. It only takes a quick flick to the databank section in Shares Magazine to see that gold is outperforming and most non-precious metals are headed in the other direction.

It’s hardly surprising then when you turn to the chart below you see that the shares of BHP Billiton (LSE: BLT) and Hargreaves Services (LSE: HSP) have collapsed over the last 12 months due to their exposure to these under-pressure commodities. Meanwhile shares in Bovis Homes (LSE: BVS) and Galliford Try (LSE: GFRD) have simply declined due to the general worries in the sector and market volatility rather than any concrete evidence of a downturn.

Dividend risers vs dividend cutters

If the pressure of falling earnings on the company share price wasn’t enough, investors should be aware that a sensible board will also need to keep their eye on the dividend payout.

Sadly, it’s often the case that investors can be suckered into shares, which to the untrained eye can look like they have a market-beating yield.

We’ve seen evidence of this recently with both BHP Billiton and Hargreaves Services. Before the interim results announcements in February, both shares looked set to yield in excess of 10%. However, both management teams announced that they were cutting the dividend: by a whopping 74% at BHP and 84% at Hargreaves.

Conversely, as earnings increase, in addition to the usual accompanying share price rise, management is also afforded the opportunity of increasing the dividend payout.

We’ve seen this of late with both Bovis and Galliford Try. Both management teams were confident enough to raise the dividend (by 14% at Bovis and 18% for Galliford) and this places the shares on a forward yield of 5% and 6%, respectively, according to data from Stockopedia.

And despite the uncertainty in the housing sector at the moment, most companies that I see presenting from my trading desk are indicating that the current environment is sustainable given the low interest rates and structural shortage of housing generally. This gives me confidence that the dividends are also sustainable and should rise further in the future along with the company share price.

The post Why I Prefer Dividend Growers Galliford Try plc & Bovis Homes Group plc To Dividend Cutters BHP Billiton plc & Hargreaves Services plc appeared first on The Twelfth Magpie.

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As a result, Hargreaves Services will reduce its exposure to the thermal coal market over the next couple of years, which it believes will generate improved cash flow from the unwinding of stock and plant positions. It will also continue to restructure and believes that while the short term will be challenging, the business has a relatively bright long-term future.

With Hargreaves Services expected to remain profitable during the short-to-medium term, its sustainability as a business doesn’t appear to be in doubt. However, with major changes afoot, declining profitability and reduced dividends, there may be better options in which to invest elsewhere.

Struggles ahead

Also struggling in recent months has been mobile payment solutions provider Monitise (LSE: MONI). It continues to struggle to turn a profit and this puts it in a much riskier position than Hargreaves Services. For example, it’s forecast to post a pre-tax loss of £27m in the current year and while this would represent an improvement on last year’s performance, it still leaves the company’s financial standing under increasing pressure.

Looking ahead, Monitise appears to be some way off generating a black bottom line. Although its product and idea is sound and has proved to be popular among major blue-chip customers, the investment community seems to be losing patience with the company’s profit outlook. This is evidenced by Monitise’s share price fall of 91% in the last year. Although it’s likely to still exist in a year, it seems prudent to avoid buying Monitise until it’s in an improved position regarding profitability.

Ch-ch-ch-changes

Meanwhile, online advertising company Blinkx (LSE: BLNX) is also struggling to turn a red bottom line into a black one as it transforms itself. Its recent update showed that losses in the first six months rose to $79m from $11m in the comparable period from the previous year. However, this included a $60m non-cash exceptional charge for exiting certain non-core businesses which, alongside a $1m restructuring programme, are gradually changing Blinkx’s business model and focus.

While the company has considerable potential to deliver improved financial performance, it appears to be a stock to watch rather than buy at the present time. Owing to its relatively large cash pile and sound balance sheet, Blinkx is very likely to still exist in one year. However until it’s profitable, investor sentiment may remain weak and cause its share price to come under further pressure following its 30% fall in the last year.

The post Will Hargreaves Services plc, Monitise Plc And Blinkx Plc Still Exist In 1 Year? appeared first on The Twelfth Magpie.

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