If you’d invested in: Hostelworld and Lonmin

If only…

Dublin-based Hostelworld Group (LSE: HSW) provides an online platform for young travellers to book rooms in hostels and other budget accommodation around the world. Bookings slipped by 1% in 2016, revenue fell by 4% and earnings rose by just 1% – but the group’s growing cash pile still led to a special dividend of €0.105 per share. The share price has risen by over 100% in the last year.

Be glad you didn’t…

South African platinum producer Lonmin (LSE: LMI), which was spun off from the colonial conglomerate Lonrho in 1998, has lurched from crisis to crisis in recent years. It has endured years of violent labour disputes that have hampered production, and is saddled with crippling debt. The company last reported a profit in 2013. Shareholders have seen the value of their investment all but wiped out – since its peak in 2007, the price has fallen by 99.98%. And anyone brave enough to buy in the last year has lost almost 60%.


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