Monitise
2014 has been terribly up and down for investors in Monitise (LSE: MONI). While there have been continued rumours surrounding the potential for a bid approach from IBM, Monitise has had to contend with the uncertainty surrounding a major shareholder (and customer), Visa. As a result, shares in the mobile payments company are down 51% this year (and 2% today).
Clearly, Monitise has considerable future potential. The company’s technology has been embraced by numerous banks and it is set to deliver a profit in 2016, which could be the catalyst that the market is waiting for. Until then, Monitise’s share price remains highly dependent upon sentiment, with further news surrounding IBM and Visa likely to have a major impact on its share price.
Risk-seeking investors may wish to buy in now, since the market could begin looking ahead to 2016 as soon as next year and, with bid potential on offer, Monitise could turn the tables on its disappointing share price performance in future months.
Dart Group
Jet2.com operator, Dart Group (LSE: DTG), has seen its share price hit today by the Supreme Court’s rejection of its appeal regarding compensation payouts to passengers resulting from technical defects. As a result, Dart Group’s share price has fallen by 15% today, with further short term falls very much on the cards.
The decision means that Dart Group may have to make compensation payouts to passengers when there is a technical defect with an aeroplane, and means that the company could pay out £3 million to £5 million per year moving forward. It has also meant that Dart Group has made a provision of £17 million, with market sentiment declining significantly and sending shares lower as a result.
Still, with Dart Group trading on a price to earnings (P/E) ratio of just 10.3 and being expected to deliver double-digit earnings growth next year, it could be worth buying right now.
Aveva
After releasing a profit warning in September, shares in Aveva (LSE: AVV) have fallen by almost a third and are down 4% today. Indeed, sentiment in the engineering software provider has sunk to a relatively low level and this weakness could continue over the near-term, as the market remains unconvinced about the company’s future.
In its September trading update, Aveva cited the phasing of EPC rental renewals and weak demand from South America and Asia (excluding China) as key reasons for lower than expected top and bottom line numbers. Furthermore, sales force reorganisation is expected to hit the bottom line in the current year, as are negative currency impacts.
However, these challenges could prove to be temporary in nature. As such, the medium to long term future of Aveva could be brighter than currently realised by the market and, with earnings set to grow by 13% next year (and Aveva having a price to earnings growth ratio of 1.3), recent share price falls could prove to be a strong buying opportunity.