Why would anyone āinvestā in AIM companies? What is the attraction and draw here? Question for new to investing people and more seasoned ones.
First of all almost every AIM company is plagued by Biblical proportion of disasters, oh boy they have explanation scrolls ready for you to explain their cash burn and underachievement of promised results. Probably could post them in Hebrew too 
2 Every director of AIM company gets a fat salary. Plus everyone on a board of directors get generous reward too. A lot of times it is bigger than working for a company with longer track record and listed on LSE. This is a huge red flag. I donāt mind rewarding people for their work, but most companies on AIM are fighting survival, rather than prosperity game. Big salary is a drain on financials.
3 NO dividends.
4 Name changing. One year it is xyz mining, next year the name and ticker symbol gets a plastic surgery. It is renamed to ABC mining (resources, exploration)- use your imagination. In general renaming a company cost money. It is OK for some sort of big shot company, but for a company that barely scraps by on envelopes and A4 paperā¦? The only reason for this renaming game is to gain new āinvestorsā or shall we sayā¦ a bit uneducated people in investing gameā¦
5 When you google names of directors, a lot of times you will find career ādirectorshipā. Nothing wrong with that, but why would anyone change jobs too often? Schizophrenia? Poor results? Got fired? Milked the company to the death and started another one? Oh, these past companies that someone was a director there do not exist anymore? Red flag.
6 Constant placements of their shares. Money needed there, money needed hereā¦ Zero results, but oh boy AIM companies love to dilute shareholder.
7 Share consolidation. That one is awesome! When company is about to go under just because of share price - 0.000001- use your imagination- something is not even funny, they come up with a rescue plan- a few zeroes get slashed and share is back to trading with less zeroesā¦ So director can almost be proud pointing at āincreasedā price. That usually does not last very long- director, the family needs to eat, so just wait for another dilution.
I probably could continue on and onā¦
Personally for me the draw was inexperience as an investor, then some sort of hypnosis state when I started seeing that overnight the share can go up 10-100X. Unfortunately it is very poor risk management. What about being on receiving side and watching how Ā£1000 invested becomes Ā£100- Ā£10- Ā£1?
So my advice is stay with companies that are worth your hard earned money. For example Coca Cola might not make a lot of money as per increase in appreciation, but at least you will get dividends and sleep more soundly.