2 of 2017’s biggest share price movers: Sirius Minerals PLC and Carillion plc

These 2 share prices have been among the largest mid-cap movers so far this year: Sirius Minerals PLC (LON:SXX) (SXX.L) and Carillion plc (LON:CLLN) (CLLN.L)

Carillion plc
Carillion plc

This year has been a relatively interesting one for many investors. For some, such as investors in Sirius Minerals PLC (LON:SXX) (SXX.L), it has been positive. The mining sector company has recorded share price growth of over 50% so far this year. However, for other investors, such as those in Carillion plc (LON:CLLN) (CLLN.L), it has been a poor year. Its shares are down over 75% since the start of the year.

Carillion has performed relatively poorly this year because of a disappointing update released recently. It constituted a profit warning, a suspension of dividends for this year, a major review of the business and the resignation of the company’s CEO.

Although since then there has been positive news regarding the winning of a couple of new contracts, overall investor sentiment has been relatively downbeat. In my view, more volatility could be ahead for the company’s share price, since its future appears to be relatively uncertain. Although there may be a sound underlying business still in existence, Carillion is a stock I’m watching rather than buying just now.

In contrast, the Sirius Minerals share price has performed exceptionally well so far this year. I’m optimistic about the long term prospects for the company and even after its significant share price rise it may offer good value for money in my opinion according to its various projections and forecasts for the long run.

In the short run, I feel more volatility could be ahead. However, I was encouraged by the recent update which said the project is on time and on budget. In a resources sector which I’m bullish about, I think Sirius Minerals could offer investment appeal for the long run. Although risky due to a lack of production and a single site, I think it could perform relatively well in future.

About Robert Stephens 3883 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email [email protected] or use one of the other contact methods available on the 'Contact Us' page