Ryanair, DDD Group and Highlands Natural Resources

“The blue-chip index remained in the doldrums in early afternoon trading with miners and energy stocks clustered near the bottom of the board as metal and oil prices dropped. Sentiment was also constrained by Prime Minister David Cameron and Chancellor George Osborne warning that the UK faces a recession if the country leaves the EU,” says AJ Bell Investment Director Russ Mould.

“Ryanair has fired the opening salvo in a cut-price ticket war to lure passengers who may be reluctant fliers following terror attacks and cancellations due to air traffic control strikes. Ryanair has thrown down the gauntlet and, given its clout in key markets, it seems inevitable that its budget airline rivals will have to respond. Ryanair’s passenger numbers rose by 18% in the year to March and it cut average fares by 1% as it passed on fuel savings. It expects to cut average fares by 7% this year in a bid to maintain its market share.

“Imaging and 3D solutions company DDD Group’s shares plummeted after revenues tumbled and it revealed plans to delist from AIM. DDD is shifting its focus to the gamecasting and video conferencing markets as well as launching a new app which simplifies ‘selfies’ and makes them interactive. But revenues from the 3D TV market were lower due to the transition of the use of its TriDef 3D conversion technology from HDTVs to UHD/4K TVs.

“The cost of being on AIM has now become excessive for the size of the business and cancellation will cut out a significant expense and increase the chance of potential dividends in the future.

“Investors rushed to Highlands Natural Resources after it signed a licence agreement for the use of its re-fracking technology with US pressure-pumping provider Calfrac Well Services. Highlands bought a 75% interest in Diversion Technologies’ DT Ultravert re-fracking technology a year ago. Well stimulation or fracking is a $50 billion per year industry and DT Ultravert has the potential to transform and significantly reduce the costs associated with unconventional exploration and production.”

These articles are for information purposes only and are not a personal recommendation or advice.