Are These The 3 Best Small Caps For Next Year? Blinkx Plc, Monitise Plc And Lgo Energy PLC

Could these 3 small-caps deliver stunning gains in 2015? Blinkx Plc (LON: BLNX), Monitise Plc (LON: MONI) and Lgo Energy PLC (LON: LGO)

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Blinkx

2014 has been pretty dire for investors in Blinkx (LSE: BLNX). After all, the company has begun a transitional period from focusing almost exclusively on desktop to now concentrating on mobile in regard to future earnings growth. Clearly, this is a major change for the business and it is, therefore, perhaps unsurprising that Blinkx’s bottom line has moved into the red, with its share price falling by 88% this year as a result.

Of course, Blinkx can turn things around and, crucially, it has the cash to do so. However, it could take a lot longer than just one year to do so and, as a result, 2015 could be another disappointing year for investors in the company. As such, it may be worth keeping an eye on Blinkx, but keeping your powder dry for the time being.

Monitise

With a blue-chip client base, major corporations as shareholders, and a superb product, it seems as though Monitise (LSE: MONI) is destined for success. However, what it lacks at the moment is profit and, looking ahead to 2015, it’s unlikely that it will come along before the year is out.

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While that’s not a major problem for long term investors, since Blinkx operates in a relatively young industry that has excellent long term potential, it means that the company’s share price may fail to perform well over the next year. Certainly, a fall of 60% (as has been the case this year) may be unlikely, but similarly strong gains may not occur until Monitise can move into the black, which is not likely to happen until 2016 at the earliest.

Lgo Energy

With shares in Lgo Energy (LSE: LGO) having risen by an incredible 515% in 2014, it has bucked the trend in regard to a declining oil price hurting the vast majority of its sector peers. A key reason for this has been continued upbeat updates from its Goudron field in Trinidad, where Lgo Energy has just this week confirmed that oil is flowing better than it had previously expected.

Looking ahead, much of the company’s future potential could now be reflected in its share price and, although its latest updates have been very encouraging, it’s unlikely for them to continue to be positive in perpetuity. As a result, and while Lgo Energy undoubtedly has considerable future potential, it could be worth waiting for a keener share price before buying a slice of it.

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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.

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