Companies bandy the word “transformational” too much, perhaps, but when the share price rises more than 1,100% in a year, it’s not hyperbole.
That’s the story of Echo Energy Plc (LON:ECHO), the best performing stock on the London stock market in 2017.
READ: Echo Energy to follow a strong Latin American beat after Bolivian intro
Born out of the ashes of Independent Resources, with key executives from Sound Energy, the company has not hung about, pursuing its strategy of acquiring assets in central and south America.
It has “two fantastic opportunities” in Huayco and Rio Salado in Bolivia, and more recently completed the “transformational” acquisition of assets in Argentina.
Close, but no cigar
Beaten into second place was another company Proactive Investors has followed closely: Greatland Gold plc (LON:GGP).
The shares rose an astonishing 960%, with take-off really occurring in October once exploration results from its assets in Australia started rolling in.
The third biggest riser was Sealand Capital Galaxy Ltd (LON:SCGL), an investment company engaged in the investment and acquisition of information technology and social media businesses in the Asia-Pacific region.
The shares started defying gravity in late July when the company acquired a majority stake in Rightyoo, a mobile games developer and distributor based in the People’s Republic of China.
The full list of the top 10 risers
1. Echo Energy +1,106%
2. Greatland Gold +959%
3. Sealand Capital +820%
4. Vela Technologies +750%
5. Wey Education +739%
6. Trinity Exploration +707%
7. Online Blockchain +613%
8. Zoo Digital +517%
9. Thor Mining +500%
10. Serica Energy +474%
Information provided by Thomson Datastream
No chief executive ever uses the word “transformational” when the share price loses more than 99% of its value in a single year, but in most cases such a severe loss leaves the company a very different beast to the one it was at the beginning of the year.
Take Kin Group Plc (LON:KIN), which started the year as a “digital wellness provider” and ended it as a cash shell after a financial restructuring.
The company has until February to invest that money, otherwise trading in the company’s shares will be suspended.
Kin terrible year
The company formerly known as Intelligent Energy was another that ended the year as a shell company; it actually changed its name to Lb-shell PLC (LON:LBP).
Unlike Kin Group, however, it plans to wind down operations and delist, having sold off its main operating subsidiary.
The shares were down 97% on the year, which was also the amount Torotrak’s shares had lost before trading in the shares was suspended earlier this month after the administrators were called in.
For sale
Torotrak plc (LON:TRK) is a developer and supplier of emissions reduction and fuel efficiency technology for vehicles. Having been unable to secure funding to continue in business it looks like it might have to sell off its technology, intellectual property and other assets.
The biggest name casualty of the year, however, was undoubtedly Carillion PLC (LON:CLLN), the former FTSE 350 company that lost 93% of its value.
A series of profit warnings and a mountain of debt left the engineering contractor fighting for survival.
READ: Analysts think Carillion's most likely route to survival is through a debt for equity swap
The market capitalisation of the company is now a mere £73mln; unfortunately, any company that buys it also has to take on about £1.1bn of debt and some onerous pension obligations.
The shares have levelled out this month so at least it has avoided the dreaded “dead cat bounce”, which is like the “vote of confidence” from the board for a football manager.
The full list of the top 10 fallers
1. Kin Group -99%
2. Lb-Shell -97%
3. Torotrak -97%
4. Monreal -96%
5. Challenger Acquisitions -95%
6. Flowgroup -94%
7. Churchill Mining -93%
8. Rm2 International -93%
9. The People’s Operator -93%
10. Carillion -93%