Of course, French Connection’s near-term outlook is rather disappointing. It is expected to report a loss for its financial year just ended, while a further loss is forecast for the current year. However, investors may be feeling positive about French Connection’s price to book (P/B) ratio of just 0.9, which indicates that an upward rerating could be on the horizon. And with a cost reduction and store closure programme apparently on-track, margins at the company could be due for an improvement.

However, with there being a number of other retailers that are highly profitable and that trade on appealing valuations at the present time, it may be prudent to watch rather than buy French Connection right now.

Also rising sharply today is digital audio platform Audioboom (LSE: BOOM). Its shares are up by around 7%, and this week has been a rather positive one for the business, with it having been selected by Google to be a content provider for its Google Play application in the US. Audioboom was the only non-US partner chosen among ten others and this bodes well for its long term profit potential.

Clearly, Audioboom is a relatively high-risk business, being relatively small, and therefore it may only be of interest to less risk-averse investors. However, with Audioboom set to move into the potentially lucrative Indian market via a partnership with film company Eros, it could be a stock to watch in 2016.

Shares in W Resources (LSE: WRES) have also been among the major movers today, falling by around 5%. That’s despite the company releasing a positive update with regard to its mineral resource estimate at its La Parilla project in Spain. In fact, the total resources estimate for La Parilla has increased to 51m tonnes, which represents a rise of 16% in tungsten trioxide and a 29% increase in tin. Importantly, the quality of the resource definition has also increased, which is clearly positive news for the company’s investors.

With W Resources forecast to post a pretax profit in 2016 following five years of losses, investor sentiment in the company could begin to improve. Certainly, it remains a relatively high risk mining play and with there being many other profitable stocks within the same space offering low valuations, W Resources may have standalone appeal to less risk averse investors, but it could be worth looking elsewhere due to the relative attraction of its peers.

The post Should You Buy These 3 Major Movers? French Connection Group, W Resources PLC And Audioboom Group PLC 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.

Nonetheless, there are some bargains on AIM that could yield lucrative returns for investors, although singling out these opportunities is tough. W Resources (LSE: WRES), Xtract Resources (LSE: XTR) and Victoria Oil & Gas (LSE: VOG) all look as if they have bright futures, but if you had to pick just one, which should you choose? 

W Resources is a tungsten production, exploration and development company that owns four mines in Spain and Portugal, two of which are being fast-tracked to begin production within the next two years. W Resources is targeting production from the La Parrilla Mine in Spain during 2016, and production from the Régua mine in Portugal during 2017. The company received development approval for its La Parrilla mine earlier this week, so management is confident of hitting the target for initial production next year. When in production, La Parrilla and Régua are expected to have some of the lowest production costs for tungsten in the world. Furthermore, W Resources is targeting revenue of $90m per annum by 2018. 

Xtract Resources has the potential to become one of the world’s premier small-cap gold producers. The company has made staggering progress over the past year improving its prospects, and during September the company acquired the Fair Bride gold project, jacking up Xtract’s resource base to over 1m ounces of gold. However, Xtract’s key advantage is the fact that the company’s cost of production is around $650 per ounce of gold, making it one of the world’s lowest cost gold producers. Gold production is expected to double over the next year and the company recently received a boost from its Chepica Gold and Copper Mine in Chile, which reported revenue growth of 153% to $448k and profit growth of 186% to $150k for the third quarter. 

Victoria Oil & Gas has made solid progress on its strategic goals this year. The company’s gas sales nearly tripled year-on-year over the nine months to the end of September, and gas production doubled during the third quarter. Also, Victoria is planning more drilling activity during 2016, which should see gas production and sales increase further. During the third quarter, group gas production reached an all-time high of 15.2m standard cubic feet per day. And Victoria is cash-rich, which is rare for such a small player in the world of oil and gas. At the end of the third quarter the company had $12.8m of cash, down from $14.2m as reported at the end of the second quarter, but the company reduced debt by $2.4m during the period. In other words, cash generated for the three months to the end of September was around $1m. 

Overall, as Victoria is the only company in this piece that’s cash-rich and generating cash, it looks as if Victoria is the AIM champion that should take a place in your portfolio. 

The post Which AIM Champion Deserves A Place In Your Portfolio? W Resources PLC, Xtract Resources PLC Or Victoria Oil & Gas plc? 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?

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.