BacanoraMinerals (LSE: BCN) is up 16% today at the time of writing, and it doesnt look like its rally is going to end any time soon.Elsewhere, Creston (LSE: CRE) whose stock was up 4% in early trade also drew myattention today. Heres why.
BacanoraMinerals
The board of Bacanora has noted the sharp increase in the companys share price during trading in Canada last night, Bacanorasaid today.The board is not aware of any reason for the price movement (and) will continue to work towards delivering value for all shareholders.
Its shares rose 46% toCAD2.05 yesterday on the other side of the Atlantic, and the rally continued today in London.
Canada-based Bacanora, alithium and borates development company focused on Mexico,released on Fridayan update on its upcoming milestones, which relate to its on-going transition from an exploration to a mine development company.
On the face of it, the statement didnt seem to add much to the investment case, but could the imbalance between supply and demand in lithium be behind the rally?
Or shouldTeslas development plan be praised?
If you are keen to invest in Bacanora, I suggest youread this, while also considering thatMolycorp, a flagship US-based rareearthsminer, is reportedlyabout to go belly-up
Creston
Creston, a marketing firm with a market cap of 75m, announced astrategic investmentand unaudited full-yearresultstoday. The deal, according to which Creston will take a 27% stake in 18 Feet & Rising, gives the buyer access to such clients such asAllianz, Cuprinol, Kopparberg, Nandos, and House of Fraser.
Creston said that 50% per cent of the 1 million cash payment for the shareholding will be invested in the business to help accelerate its future growth, which valued the targets equity at 3.7m, or about 1.4x the value of 18 Feet & Risings trailing revenue, which stood at 2.7m at the end of 2014.
Crestons unaudited full-year results for the year ended 31 March 2015 show that like-for-likerevenues rose 2% to 76.6m, a growth rate in line with that of its core operating income. The group proposed a full-year dividend of 4.20p per share (2014: 3.90p per share), for adividend yield in the region of 3%,while reporting a net cash position of 8.3m (2014: 7.5m).
Digital and online revenue up 7 per cent in absolute terms representing 55 per cent (2014: 53 per cent) of group revenue, Creston noted, adding that it spent1.8m buying back its own stock at an average price of 111p per share.
Based on its forward trading multiples, its shares do not look expensive right now, although Creston has to work hard to become a more profitable entity at operating level, in my view.Creston trades at 132p, and is flat year to date, but has risen 14% since early February and 40% over the last two years.
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Alessandro Pasetti has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.