Should You Buy easyJet plc, Seaenergy PLC & Monitise Plc Today?

Royston Wild looks at the investment potential of easyJet plc (LON: EZJ), Seaenergy PLC (LON: SEA) and Monitise Plc (LON: MONI).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Today I am running the rule over three Friday movers.

Still soaring

Budget flyer easyJet (LSE: EZJ) has endured a torrid time in recent weeks, the stock losing 11% of its value since the start of the year. But the business was recently dealing 5% higher in Friday trade after releasing a fresh batch of bubbly passenger data.

The Luton airline advised that passenger numbers advanced 9.8% in February, to 4.93m, underlining the steady acceleration in traveller totals in recent months. On a 12-month rolling basis passenger demand advanced 7.5% through February.

With sales of budget tickets expected to keep on rising, and easyJet boosting the number of routes it operates to meet this demand, I reckon earnings at the firm should keep on flying higher.

This view is shared by the City, and the company is expected to enjoy a 7% earnings rise in the year to September 2016 alone, resulting in an exceptional P/E rating of 10 times. And a projected 59.7p per share dividend — yielding a substantial 4% — should attract the attention of savvy income hunters.

Plumbing new depths

Oil services play SeaEnergy (LSE: SEA) has also dominated the headlines in end-of-week trade, with the release of a bearish trading update sending its share value plunging 52% lower from Thursday’s close.

SeaEnergy reported that “trading conditions within the oil and gas industry have deteriorated further since the start of the year“, meaning that many projects due in the early part of 2016 have been booted to later in the year or possibly beyond.

Furthermore, the business advised that it is still “generating losses at current activity levels” despite rampant cost-cutting and divestments. Consequently SeaEnergy plans to assets like its ‘R2S Visual Asset Management’ division to continue trading beyond May without the need for additional funding.

Considering the poor state of SeaEnergy’s balance sheet, not to mention the remoteness of a sudden upturn in the oil and gas market, I believe shrewd stock pickers should resist the urge to go bargain hunting at the struggling services provider.

A tech terror

Payment processing specialists Monitise (LSE: MONI) has seen its share price gallop 36% higher in Friday trade, taking total gains since the start of March to 55%.  Even so, that still leaves it down 85% down since this time last year.

Monitise announced today that it was in early-stage discussions to hive off its Markco Media division. The business snapped up the operator of sites such as MyVoucherCodes.co.uk for a potential £55m just a couple of years ago.

Still, the news comes as relief to investors following the tech play disastrous trading update last month. Monitise advised that revenues slumped by a 21% between July and December, to £33.4m, while the impact of massive write-downs caused pre-tax operating losses to quadruple to £211.6m.

But the City is not expecting Monitise to turn a profit in the years to June 2016 or 2017, a huge disappointment for a firm with hot growth prospects just a few years ago.

With the business failing in its efforts to switch to a cloud-based model, and industry heavyweights like Apple and Google increasing their footprint in the mobile payments space, I do not expect things to improve at Monitise any time soon.

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.

Royston Wild 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.

More on Investing Articles

Person holding magnifying glass over important document, reading the small print
Investing Articles

Just released: our top 3 small-cap stocks to consider buying in October [PREMIUM PICKS]

Small-cap shares tend to be more volatile than larger companies, so we suggest investors should look to build up a…

Read more »

Investing Articles

How I’d use an empty Stocks and Shares ISA to aim for a £1,000 monthly passive income

Here's how using a Stocks and Shares ISA really could help those of us who plan to invest for an…

Read more »

Investing Articles

This FTSE stock is up 20% and set for its best day ever! Time to buy?

This Fool takes a look at the half-year results from Burberry (LON:BRBY) to see if the struggling FTSE stock might…

Read more »

Investing Articles

This latest FTSE 100 dip could be an unmissable opportunity to pick up cut-price stocks

The FTSE 100 has pulled back with the government’s policy choices creating some negative sentiment. But this gives us a…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

As the WH Smith share price falls 4% on annual results, is it still worth considering?

WH Smith took a hit after this morning’s results left shareholders unimpressed. With the share price down 4%, Mark Hartley…

Read more »

Investing Articles

The Aviva share price just jumped 4.5% but still yields 7.02%! Time to buy?

A positive set of results has put fresh life into the Aviva share price. Harvey Jones says it offers bags…

Read more »

Investing Articles

Can a €500m buyback kickstart the Vodafone share price?

The Vodafone share price has been a loser for investors in recent years, and the dividend has been cut. We…

Read more »

Frustrated young white male looking disconsolate while sat on his sofa holding a beer
Growth Shares

3 mistakes I now avoid when choosing which growth stocks to buy

Jon Smith runs through some of the lessons he's learnt the hard way over the years about what to look…

Read more »