About the AIM market

Whatā€™s your viewpoint on the stocks in this market? Do you take a bet and put a few Ā£Ā£ in just in case the company does end up producing & being profitable? Or do you not pay attention to the stocks listed there?

Discuss

2 Likes

This is just a personal point. I have had losses in the beginning around 5k by investing in aim companies. These companies are not regulated and sometimes their finances ie accounts are not accurately reported. I think you need a solid foundation with blue chip stocks, indexes before taking a dive here. Risk and reward but more people I know lose money on here than make it. There are obviously some great investors that do well but that comes with a lot of time and experience.

2 Likes

LSE AIM listed companies have to meet a range of requirements, just like listings on the main market. However, the requirements are not as onerous and it costs less money to list on AIM.

Info on this is available from the LSE here.

The companies need to have their accounts audited and published, lots of info at the site above. Section 19 of the AIM rules contains the following:

An AIM company must publish annual audited accounts which must be sent to its
shareholders without delay and in any event not later than six months after the end of the
financial year to which they relate.

An AIM company incorporated in an EEA country must prepare and present these
accounts in accordance with International Accounting Standards. Where, at the end of
the relevant financial period, such company is not a parent company, it may prepare and
present such accounts either in accordance with International Accounting Standards or
in accordance with the accounting and company legislation and regulations that are
applicable to that company due to its country of incorporation.

1 Like

Agree but even if accounting practices are in place, some small companies know how to manipulate these. It is usually harder witb bigger stocks as they have so many analysts covering it.

https://www.ii.co.uk/analysis-commentary/best-aim-stocks-2019-whos-1700-so-far-ii510030

A good article here.

For example, I bought in on GAN on Monday and by close on Tuesday my investment was up 9.33%. Definitely one to watch :blush:

GAN (GAN) fundamentals

GAN plc (formerly GameAccount Network plc) is a leading B2B supplier of Internet gambling enterprise software-as-a-service solutions to the US land-based casino Industry. GAN is listed on the ESM Market of the Irish Stock Exchange and the AIM Market of the London Stock Exchange. The Company has developed an Internet gambling enterprise software system, GameSTACK, which it licenses principally to land-based US casino operators as a turnkey technology solution for regulated real-money Internet gambling encompassing Internet gaming & Internet sports betting and/or virtual Simulated Gaming. GAN has fourteen casino operators as clients of Simulated Gaming coast-to-coast across the US and Internationally; two clients of real money Regulated Gambling in New Jersey; one client of real money Regulated Gambling in Pennsylvania and ten clients of real money Regulated Gambling in Europe.

2 Likes

Thatā€™s completely untrue. They are regulated and have to publish their audited accounts.

The problem with AIM shares is that they are generally more volatile because large funds and institutions usually donā€™t hold them so price changes can be exaggerated.

I donā€™t mind an aim share in small quantities. Iā€™ve had some big losses and gains on AIM.

4 Likes

I wanted to rephrase what I havs said. They are regulated but not scrutinised in the same way blue chip stocks are. A perfect example of this was quindell many years ago. Just because your regulated doesnā€™t mean you canā€™t use clever accounting practices.

Yes there is less focus from the regulators. I suppose if funds are holding millions of pension pots in a Ftse 100 you can understand why they are scrutinised more than a company with a MCap of less than Ā£1m

2 Likes

Itā€™s incredibly volatile in my experience. The key one thatā€™s sapped the most energy is Sirius Petroleum. Been following that one for 4 years, but some people have been following for a decade waiting for results. Roll on 2020. :crossed_fingers:

1 Like

I bought Ā£5 worth of shares to test my ā€œgut feelingā€. The Ā£1.50 it is worth showed that I was right to question my gut feelings lol

Wow, thatā€™s crazy. Which company was it?

Actually not sirius petroleum, sirius minerals. I wanted to buy them but just knew they wouldnā€™t deliver so to fight the urge I bought Ā£5 worth!

1 Like

Oh Minerals thatā€™s completely different company about fertilizer. No relation to the oil other than the first word. :smile:

SRSP still suspended but itā€™ll be worth 10p - 20p a share on return. :crossed_fingers:

Iā€™ve got only a million shares, but know through friends of friends that have 100s of millions shares.

Just need BP or such to buy it to take the assets. :money_mouth_face:

I like a good oil company. Iā€™m heavily invested in GKP Gulf Keystone Petroleum. Bucket loads of cash, paid their first divi this year. I understand oilers but need an interpreter when reading a mining RNS.

2 Likes

SXX is not listed on AIM but the main market. Details here.

I know. I was thinking about Sirius Petroleum when I replied above.

Looking good, glad I bought :blush:

1 Like

Iā€™m going to be investing in a company called Bacanora. They update regularly and I really think lithium for cars will be a big thing in the future as we get closer to more electric in automobiles. I also have shares in a oil investment company called Reabold who have alot of assets in multiple oil companies. Iā€™d rather be invested in them than solely in one company and wait like a lemon for them to produce anything with their drill :unamused:

2 Likes

Thereā€™s a threads on them, couple of us are quite bullish:

3 Likes

Leon agree with Codf Bacanora looks like a great company at its my only lithium play, Iā€™m continuing to build a position there. Most of my portfolio now is EV related as this will be the decade the industry really grows.
Iā€™ve got positions in Tesla but also NIO which isnā€™t available on here yet but hold through my other broker :relieved: check out the NIO thread on freetrade. My other play is a Nickel project by a company called GIGA metals on the TSX exchange but yet again hold through other broker as not available on freetrade, also check out that thread but here is the website link. https://www.gigametals.com/ This could take about 5 years to show real value but good price to build a position. With EVā€™s if you want a longer range you need more Nickel in the battery so Lithium and Nickel exposure great plus Indonesia have a Nickel export ban now for 2 years so watch the Nickel price slowly rise. Finally check Blink charging out thread also on freetrade which I hold through other broker yet again. Good luck with your investments :+1:t2:

2 Likes