TERN & Falcon Oil (FOG): Should you buy these 2 AIM stocks now?

Highlights

  • Tern reported a loss of £718,465 in its H1 2021 results, compared to a profit of £142,474 in H1 2020.
  • Falcon reported resumption of operations at its Kyalla 117 N2-1H ST2 well in the Beetaloo Sub-Basin.

AIM stocks are usually smaller cap stocks with the possibility of offering investors high growth. Investors looking for high quality stocks in the AIM market can have interesting investment options, like Tern PLC (LON: TERN) and Falcon Oil and Gas Ltd (LON: FOG), which are buzzing today.

Let us take a closer look at these 2 FTSE AIM All-Share stocks performance:

  1. Tern Plc (LON: TERN)

Tern is an investment company focused on companies involved in the internet of things (IoT). The company reported a loss of £718,465 in its interim unaudited H1 2021 results today, compared to a profit of £142,474 in H1 2020. The loss was due to higher costs, however the company expects to have a better H2 2021 performance.

Tern also stated the company its H1 2021 principal portfolio companies’ turnover rose by 75 per cent, compared to 62 per cent in H1 2020.

Image description: Tern’s stock performance

(Image Source: Refinitiv)

Tern’s shares were trading at GBX 17.75, down by 6.58 per cent on Tuesday at 08:44 AM BST. The FTSE AIM All-Share index was trading at 1,281.48, down by 0.33 per cent.

The company has a market cap of £66.81 million, and its one-year return to shareholders stands at 134.70 per cent as of 14 September.

  1. Falcon Oil and Gas Ltd (LON: FOG)

Falcon Oil and Gas is an international oil and gas company. Falcon resumed operations at Kyalla 117 N2-1H ST2 well in the Beetaloo Sub-Basin located in the northern territory of Australia. Comprehend

The resumption of operation follows Kyalla 117 N2-1H ST2’s intermittent production due to downhole flow restrictions. Once the restriction issues are fixed now, the company expects to carry out a longer production test in order to identify longer term performance of the Kyalla 117 N2-1H ST2 well.

Image description: Falcon Oil and Gas’ stock performance

(Image Source: Refinitiv)

Falcon’s shares were trading at GBX 8.85, up by 7.27 per cent on Tuesday at 08:48 AM BST. The FTSE AIM All-Share index was trading at 1,281.48, down by 0.33 per cent.

The company has a market cap of £81 million, and its one-year return to shareholders stands at 7.09 per cent as of 14 September.

Bottom Line

AIM stocks generally are in the growth phase of their businesses, mostly in innovative tech related sectors apart from others.

Tern seems to be well placed as IoT technology is only expected to grow even further in the coming years. Oil and gas related stocks like Falcon are dependent on oil price and supply-demand trends. Oil prices are going to be impacted by another hurricane in the US after Hurricane Ida and may also get impacted with US inflation data set to be reported later today.

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