29th October 2015
Helal Miah, investment research analyst at The Share Centre, tips four stocks for brave investors to potentially to get their fangs into this Halloween…
This spookily small oil and gas exploration firm operates in Colombia, so any technical or natural disasters could significantly haunt the share price.
The region is politically unstable and the company has felt the wrath of the recent plunge in oil prices.
However, investors should appreciate that the company has made significant progress in terms of its exploration in recent years, turning projects into productive assets.
We recommend Amerisur Resources as a ‘buy’ chiefly for its exploration prospects and rapid increase in productive capacity. However, this is a stock not for the faint hearted due to the higher level of risk associated with it.
AIM listed group Iomart is one of the UK’s leading providers of cloud computing services in an industry that is expected to grow terrifyingly rapidly, as companies and consumers generate more data and become comfortable with having that data located offsite.
The company’s shares have staged a good recovery since disappointing results last year, cementing our belief that the long term prospects have not fundamentally changed.
We therefore recommend Iomart as a ‘buy’ for fearless investors looking for capital growth and willing to accept a higher level of risk. This business is operationally geared, meaning it can take more business for relatively little cost.
Optimal Payments is an online payment software specialist with products used in 200 countries by businesses and consumers.
The company, which is currently listed on the forbidding AIM market, has seen a continuation in the strong trading it experienced last year, with both the Neteller and Netbanx products performing well.
Furthermore, the group believes that the integration of the recently acquired Skrill business is going well, alongside the two other recent acquisitions, GMA and Meritus. Potential growth for this company is huge due to the significant opportunity for the group’s products in the US and around the world.
As a result, we believe Optimal Payments is a company to get your claws into but don’t be fooled, this is a company for investors with a balanced portfolio.
This is a gold miner whose principal operations are in Mali, a country with significant levels of political instability. The past tensions have impacted confidence in the company’s share price, but operations on the ground remain largely unaffected. Along with the political risks, Randgold Resources has been spooked by the decline in the price of gold.
However, investors should acknowledge that the company has been fairly consistent in increasing production, producing record amounts of gold each quarter. This is a well-run, low cost producer that finances exploration and expansion from cash flows rather than debt.
We therefore recommend Randgold Resources as a ‘buy’ for investors willing to take on a high level of risk for a play on gold. Be warned, this is an investment idea for those who don’t scare easily.