Looking ahead, the price of oil seems likely to remain relatively low in the short-to-medium term. Certainly, there’s potential for it to rise in the long run as demand from emerging economies increases and supply stabilises. However, in the short run things could get worse before they get better for Plexus and its share price could come under a degree of pressure.

With Plexus forecast to post losses in both the current year and next year, its outlook is rather downbeat. And with there being a number of other oil and gas companies that are profitable and offering good value for money, there appear to be better options available elsewhere.

Gold standard

While Plexus’s share price has been falling this year, shares in Highland Gold (LSE: HGM) have soared by around 60%. A key reason for this is the rising price of gold, with a changing stance from the US Federal Reserve being a key reason for this.

While the Fed had previously been expected to raise US interest rates up to four times this year, it’s now expected to do so just once or maybe twice. This means that non-interest-producing assets such as gold should hold greater appeal and as such, its price has strengthened.

Clearly, Highland Gold’s share price is highly dependent on the price of gold and with uncertainty surrounding the global economy being high, it would be of little surprise for the precious metal to continue to rise. Therefore, against this backdrop and with Highland Gold expected to increase its earnings by 47% next year and its shares trading on a price-to-earnings-growth (PEG) ratio of only 0.1, it seems to offer a very enticing risk/reward ratio.

Risky but rewarding

Meanwhile, shares in 88 Energy (LSE: 88E) have soared in 2016. They’ve risen by 348% year-to-date after the company reported a major discovery in Alaska, with that boosting investor sentiment in the stock due to the potential for significant production in future. And with news flow since then being positive in terms of 88 Energy announcing an increase to the independent resource estimate at the Icewine project, it’s little wonder its shares have been in demand – as evidenced by the oversubscribed share placing a few weeks ago.

While the potential rewards of investing in 88 Energy are considerable, it remains a relatively risky stock. Certainly, it has had positive news flow in recent months but this can change quickly and with 88 Energy likely to require further fundraising, it may only be of interest to less risk-averse investors.

The post Are 88 Energy Ltd, Highland Gold Mining Ltd and Plexus Holdings plc too risky to buy? appeared first on The Twelfth Magpie.

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• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
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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.

Shares in financial services company Atlas Mara (LSE: ATMA) have risen by around 15% today after it confirmed it has had discussions with a consortium of investors regarding the potential acquisition of Barclays’ stake in Barclays Africa. Barclays’ 62% stake is set to be reduced as part of a new strategy by the bank’s new management team and with Atlas Mara’s management supporting the exploration of a potential combination between the two companies, a deal could be on the cards.

This could be a sound move for Atlas Mara, since the company — which which was co-founded by former Barclays’ CEO Bob Diamond — is intent on building up its sub-Saharan presence, and a combination with Barclays Africa could have a positive impact on accelerating that process. Clearly, there is no guarantee that any combination will be effected, but the potential for it could lead to further gains in Atlas Mara’s share price in the short run. And with Africa offering significant long term growth potential within the financial services space, the company could be worth a closer look for less risk averse investors.

Upbeat

Also among the major movers today is Plexus (LSE: POS), with the oil and gas engineering services company raising $5m through a subscription deal with Russian oil and gas equipment maker LLC Gusar. This will involve Plexus issuing 6.8m shares at 52.05p per share, and at the same time as the subscription, Plexus, Gusar and Konar have also entered into a commercial agreement under which Plexus will work with them to finalise an additional licence agreement to enter Russia’s larger and more active surface land and platform production well-head equipment markets.

Clearly, the market is upbeat about today’s news, with Plexus’s shares moving 8% higher. The subscription agreement should enable Plexus to fast-track its entry into Russia’s large and important oil and gas production sector and further diversifies its revenues away from its traditional North Sea jack-up exploration market. As such, it could have a positive impact on Plexus’x future share price performance and for long term investors who can live with above average risk, Plexus could prove to be a sound buy.

Volatile

Meanwhile, shares in Redt Energy (LSE: RED) have slumped by 15% today despite it reporting a €700k profit for the 2015 financial year. This is a significant improvement on last year’s €2.2m loss and was largely due to a rise in revenue from €5.6m in 2014 to €11.1m in 2015, with it successfully shifting towards a pure play energy storage business.

However, the market seems to have reacted negatively to Redt Energy’s decision to take the commercialisation of its energy storage system step-by-step, and to try and avoid falling into the trap of selling a product that is not market-ready. As such, the company’s profitability growth may be slower than many investors had anticipated, although Redt continues to believe that there is latent demand for a storage system that performs reliably and economically. As such, it could be worth a closer look for less risk averse investors, although its shares may remain volatile in the short run.

The post Why Atlas Mara Ltd, Plexus Holdings plc and Redt Energy plc are among today’s top movers! appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Peter Stephens owns shares of Barclays. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.