Pantheon Resources(LSE: PANR) was up as much as 5% at one point today, and has risen around 40% so far this year its rally seems unstoppable.
Elsewhere, Seeing Machines (LSE: SEE) is up 10%, following anannouncement that its received its first order for its new fleet product.
Here I investigate whether it would make any sense to buy either stock, while taking into account the possibility of investing in another tiny company,MXC Capital(LSE:MXCP), which is up close to 4% so far today, and has already doubled invalue this year.
Pantheon (Market Cap 39m)
Oil and gas explorer Pantheon is one of the most discussed companies in manyshare forums but for no apparent reason.Based on its trailing financials, it did not generate any revenues between 2012 and 2014, while its cash-burn rate from operations is about 20,000 a day, according to my calculations.
As far as the top-line is concerned, things wont be any different for a couple of years at least, Id argue. If anything, Pantheon may need more capital for heavy investment.Trading volumes have risen significantly since the end of 2014, and have supported the rise in its share price , which is at least encouraging.
Pantheonhas a 50% working interest in several projects within Tyler and Polk, in East Texas and management is now engaged in a marketing push.Jay Cheatham, CEO, will be making a series of presentations to investment analysts, media and institutional investors during the course of the upcoming week, the groupnotedon Monday.
MXC Capital (Market Cap 69m)
An investment and advisory firm, its share price in the year-to-date has risen over 100%.
Trading volumes are thin (1.5 million shares are traded), and the shares change hands at3.5p, or 26.3% below their 52-week high of 4.75p as of 11 May.The good newsis that MXC raised gross proceeds of 12m from a placing in early May. The bad news, though, is that if you had invested in it three years ago, youd have lost 94% of your capital.
Its fair to say that MXC is a name to keep on the radar, but I doubt Id invest in it until the company reports meaningful updates about its financial performance. The way it looks now, it could well be a money pit it generated no revenue between 2013 and 2014, while its cash-burn rate from operations is at least 1m a year, based on trailing financials.
Seeing Machines (Market Cap42m)
At 4.65p a share, where Seeing Machines currently trades, its value has halved since the shares climbed to a record high of about 9.1p in January 2014.
Todaysannouncementis not a game-changer, butit allowed some investors to take profit.As opposed to Pantheon and MXC, Seeing Machines generates revenues (AUD11m and AUD17m in 2013 and 2014, respectively), but its at that stage of maturity where it has toreach a critical mass to be profitable at operating level.
As it grows, it cash-burn rate will continue to rise for some time, which points to dilution risk, so Id keep an eye on break-even projections.One element I certainly like is that on several projects it has teamed up with top-tier players in the aerospace and mining sectors.
In a news release this morning, Seeing Machines reported that it is
currently engaged in a successful research collaboration with Boeing Research & Technology Australia (BR&T-A), providing the eye tracking technology that monitors and measures a pilots situational awareness. The jointly developed solution was recently installed in a Boeing Flight Services 737 Flight Simulator at the Brisbane International Airport
adding that it continues to work withCaterpillarthrough the agreed phases of their global alliance agreement.
Frankly, I need to see more impressive statements, and if I were to add equity risk to my portfolio, I’d want to know exactly what is the level of risk involved: hence, I’d opt instead for a terrificgrowth and value play, whose market cap is about 10 timesthose ofPantheon Resources, MXC Capital and Seeing Machines.
This company, whosename is disclosedin this brand new report,has a strong balance sheet and easy access to fresh funding, all of which has help its shares record a +9% performance in less than 4 weeks.
Its rally isn’t over! If you want to learn more, consider that our report iscompletely freefor a limited amount of time.To get your copy right now, click here right away!