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Aim shares suggestions wanted
Charles James
Posted: 20 May 2015 05:38:17(UTC)
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I have just started following these aim shares below. I would like to know anyone's thoughts on which is best bet to survive and outperform in next five years. I picked COG as it seems to have best prospects selling dementia and drug abuse apps and now expanding to USA. some of others seemed to cheap to be true but I didn't buy. In last week mo powered has been up a lot as have two others...
If you have any thoughts on any of these companies - like stay away or buy would like to hear it...many thanks!

+0.35 (10.29%) 1.00 £0.02 £0.04 +£0.02 +150.00% +£0.00 0.00%
Stilo International Plc STL 3.25 -0.25 (-7.14%) 1.00 £0.03 £0.03 +£0.01 +20.37% -£0.00 0.00%
Scientific Digital... SDI 12.00 +1.00 (9.09%) 1.00 £0.07 £0.12 +£0.05 +62.16% +£0.01 0.00%
Frontier IP Group Plc FIPP 19.50 +0.12 (0.64%) 1.00 £0.20 £0.19 -£0.01 -2.51% +£0.00 0.00%
Outsourcery PLC OUT 21.75 +0.25 (1.16%) 1.00 £0.20 £0.22 +£0.02 +8.75% +£0.00 0.00%
Cambridge Cognition... COG 80.00 +2.50 (3.23%) 1.00 £0.80 £0.80 0.00 +0.00% +£0.02 0.00%
Digital Globe Services... DGS 48.00 -2.00 (-4.00%) 1.00 £0.51 £0.48 -£0.03 -5.88% -£0.02 0.00%
Nasstar Plc NASA 8.25 -0.25 (-2.94%) 1.00 £0.08 £0.08 -£0.00 -2.25% -£0.00 0.00%
Wandisco PLC WAND 300.45 +7.95 (2.72%) 1.00 £2.64 £3.00 +£0.36 +13.81% +£0.08 0.00%
IP Group Plc IPO 210.10 0.00 (0.00%) 1.00 £2.10 £2.10 +£0.00 +0.05% 0.00 0.00%
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Thrugelmir on 23/05/2015(UTC)
JGRH
Posted: 24 May 2015 10:07:58(UTC)
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Interesting discussion.

Don't know any of the ones that you have highlighted but have just started a v small AIM portfolio of my own so pleased that you have brought these ones up.

Does tend to be something of a binary play, so I am limiting my exposure at this stage to 1k per company and am also following specialists like Gervais Williams to see where they're putting their money.

So far have bought into Internetq, STM Group, International Greetings, Restore. I am doing OK, but they are ultra-long term plays so not much point analysing daily.

Good luck!
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Charles James on 24/05/2015(UTC)
Charles James
Posted: 24 May 2015 12:32:48(UTC)
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Will look into Gervais Williams for ideas that is the kind of suggestion I was hoping to get...much appreciated!

Internetq is a good find... like it...there were two things that it made me think of - one was that it has this streaming service similar to rhapsody/spotify and akazoo seems to have recently gone into the U.S. Market. The second was that it is one of these app platforms or mobile app advertising platform providers that I haven't really understood well yet. I was invested in perion networks (which also I think provides some kind of app advertising platform but perhaps very different from Internetq and it is on Nasdaq). It went into some confusing merger and despite reading all the sec filings I couldn't understand it despite it looking cheap...
But this company looks very good to me at this price re growing revenues and profits and I like the angle that it has this akazoo asset which would be something big in its own right.
A company that I am interested in real networks rnwk has a 45pc share of rhapsody/napster which will now be competing with akazoo it seems...but I have to say on these numbers Internetq looks a much safer bet as it is actually profitable whereas rnwk is losing a lot (but has cash to burn for a while).

I am going to just focus mainly on tech so the others would be for me outside what I can manage...good luck to you also!
Alan Selwood
Posted: 24 May 2015 12:49:35(UTC)
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Worth looking at the list of AIM shares mentioned by John Lee in the FT from time to time.

His portfolio companies (check each one yourself to confirm whether it is on AIM) that he has mentioned relatively recently include:
Air Partner, Anpario, BBA Aviation, Charles Taylor, Christie Group, Clarkson, Concurrent Technologies, Connect Group, James Fisher & Sons, Grafton Group Units, HML Holdings, James Halstead, Lk'n Store Group, McColl's Retail Group, Northbridge Industrial, PZ Cussons, Phoenix Group Holdings, Quarto Group Inc, Town Centre Securities, Treatt, VP, Vianet Group.

Some other thoughts (listed without advice to buy, sell or hold):
Advanced Medical Solutions, Asos, Avanti, Circassia, Clinigen, CVS Group, Dart Group, Globo, GW Pharmaceuticals, Hutchison China Meditech, Inland Homes, M P Evans, Majestic Wine, Mulberry Group, Nichols, Parkmead Group, Redcentric, Regenersis, Renew Hldgs, Restore, RM2 Intl, RWS Hldgs, Staffline Group, Stanley Gibbons, Telford Homes, F W Thorpe, Young & Co Brewery.

Disclosure: I may hold some of the above shares.

A list of AIM 100 shares can be found here:
http://www.digitallook.com/index/FTSE_AIM_100
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Charles James on 24/05/2015(UTC)
Charles James
Posted: 24 May 2015 13:36:56(UTC)
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Hi Alan,

That is a tip with top timing, as I only just subscribed to the ft this year...am getting the online edition and haven't seen John Lee's stock column before but will look into that -sounds useful. I was wondering where all the stock advice in the online edition was because I haven't come across any of it (specific stock advice I mean) despite searching all the sections (apart from lex which I guess I don't need so haven't paid for). But now I have a name I can ask them where it is located....although I am really looking more for micro cap under 200 million cap which they won't cover anyway...but worth a look either way.

My iPad does ask me every single time if I want to use the ft browser app or want to just read it on the browser but enough of the moaning...

I think I would have been totally put off by a list of 100 aim shares a while back but having read about quite a few of them recently I think I should be in a position to go through that now...

Thanks for the information.
Charles James
Posted: 24 May 2015 14:25:43(UTC)
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Having reviewed all those stocks I listed at the top again after a few days...(in fact mo powered had dropped off the list) I think only COG would I really invest in at current price but might invest in the others if there is some more news (or I get more information here about why their product is unique etc) as most of them are losing money currently...
But this Internetq is nice and has great figures the at a glance revs and ebitda tells an apparently very good story plus it has a few different revenue streams
http://www.internetq.com/investors
...so thanks for this one JGRH and if you come across any further AIM small tech like this that would appreciate if you post it here if you can manage it
I guess main risk is if some large tech company comes along and does the same thing cheaper or somehow obviates them but I guess it may be easier to buy a company like this and it does have the music streaming so wouldn't be totally wiped out
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JGRH on 25/05/2015(UTC)
Graham D-C
Posted: 25 May 2015 11:23:50(UTC)
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The following are my top Aim company pics. OPG: India based private electricity generating company Prelims 2/6. SPL building a new sea port close to the open sea on India's west coast close to Mumbai, first stage operational end of year.full handling capacity 8.5m tons. STCM -cement manufacturer Kazakhstan, Strong Eps and dividends forecast for FY 2015 and 2016. DYOR
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Charles James on 25/05/2015(UTC)
Charles James
Posted: 25 May 2015 16:05:59(UTC)
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Thanks for these which I have had a look at. None of them are really tech related so not exactly my thing but was interested to have a look.

Opg seems interesting re India power generation as am sure that must be a growing business it seemed they had a cap of 330, book value of 130 revs of 90 mill and ebitda of 16 mill and reporting earnings on July 2nd...if they have some great plan to grow strongly over the next few years would be interesting but I couldn't see that on brief look..if you happen to know anything that makes you think why that could happen would be great to know...would need something compelling as otherwise would figure why not go with UK based operation where you don't have the corruption risks etc

Spl Skil ports when I searched on google finance the website link didn't work made think of all those Chinese companies that i invested in that disappeared...but then at LSE their website DOES work it is just google finance has a faulty link...
At Google finance they say they have 18 mill cap
At lse website they say see the Skil ports site for latest reports...but can't see an annual report for 2014 only one covering 2013 which is really essential for knowing how this port building is going etc...they write recently in some brief updates they have about a loan of around 40 million which is enough to complete the port building...need to know correct to within the last few months what is income and balance sheet details before could look at it...may be interesting but no enough current info..if you have any would be interested to know...
http://www.londonstockex...y=GG00B53M7D91GGGBXASQ1

Stcm cement Kazakhstan -would like more of product/brand moat to invest in rather than cement plus even if it has great assets am not sure I could rely on them with them being in Kazakhstan ...but good luck with it could be great...

I know this posting and reading takes quite a but of time...but if you are so inclined should be interested why you would prefer these over for example internetq...I just feel like with tech you are getting the potential growth which you are getting from the Indian power market but you are not taking on the same risk (I think) since the operations are in the UK ....
Anyway interested to hear your thoughts if you get around to it...
I know for me my problem used to be it hard to find the stocks like internetq or similar that seems quite good investments...anyway good luck with these
Alan Selwood
Posted: 25 May 2015 21:26:53(UTC)
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As a general comment about AIM stocks, I do feel that the potential high-flyers are rare, and it is far from easy to pick a high proportion of winners without also suffering steep losses on losers.

In the longer term, you may find that some of the more sedate looking AIM stocks will achieve more than the average of brilliant and catastrophic.

John Lee seems to me to be pretty good at profiting from careful selection of AIM stocks, and generally looks to buy them when they are deeply into the Value category. Many AIM shares currently seem too expensively rated to fit in with what he has decided in the past on many occasions.

Companies that seem to have done well long-term so far include:
James Fisher, Clarkson, Christie Group, CVS Group, Stanley Gibbons, James Halstead, Town Centre Securities. None of these are in the high-tech whizz category that posters on this thread seem to favour!
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Charles James on 26/05/2015(UTC)
Charles James
Posted: 26 May 2015 02:43:10(UTC)
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Clarkson is a very good company I like it...but I find there can be too many companies to look at it if I don't pick a primary sector and I find tech seems to do better for me and I think in theory tech can grow faster than other business...all it takes is them to create a popular app for example and it can be enough to have a big effect...

But I am getting some interesting info here on this board...have remembered another UK aim stock that is worth taking a look...it is kind of a sedate not too much of the gee whizz air about it...it is a serious company run by serious people ha ha..a solid UK run company ..so if you like Clarkson this could be something you might appreciate Alan! (As both seem to be well run UK companies) Company's name is scisys...

If anyone has analysis in it would be nice to hear it. It is a UK tech consulting company that does projects in various areas that have included or have covered creating a government ecloud and space software. Seems they are UK and German based with low debt and small cap of 24 mill.
My main question is do they own any of IP to the tech they create for clients as if they do could be valuable...but I couldn't see from their reports and didn't get an reply to this question from their email...
Personally though I think this could long term be a big winner...but any info or thoughts on it would be appreciated...

http://www.scisys.co.uk/who-we-are/investors.html
Charles James
Posted: 26 May 2015 03:23:45(UTC)
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This has spurred me to check up on how scisys is doing recently

As at End of 2014
revenue of 40 mill
Net income 2 mill
Assets of 36mill minus 8 goodwill to be safe - 28 mill
Note they own a property could look more into pricing of that/ plus goodwill (which I just cut out to save time and to be cautious)
Liabilities of 15.5 call it 16 of which only 5 is debt so total 11
28-11 is 17 mill 'book' in quotes as may not be the correct term i guess that is total equity
Cap is 24
They have strong order book positive outlook per recent statements with sterling as question/problem

So summary is ..
buying a cap that is 70pc backed by assets
Only paying 24cap minus 17 book which is 7 mill for a company making NI of 2 mill a year and operating profit of 3

Per strategic guidance they will grow revs through acquisitions etc by 30pc by 2018 so anyway price should increase by that over next three years plus will improve margins they plan

But from my point of view I would be hoping for more as if they own any if the ip in these projects could be valuable and if they do any proprietary app developments then could also have great effect on their value...although on brief look at the annual report that was not a plan just planning to expand their existing model...

To me it seems cheap since should be reliable over the long term...but have the chance to get stronger growth than is expected/planned if for example their acquistion strategy outperforms and they end up going in exciting new directions rather than more just the consulting model...

DYOR I may have made mistakes in these rough figures as this actually looks cheaper than when I last looked at it but the price is still the same...
Charles James
Posted: 26 May 2015 03:31:39(UTC)
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Yes I made a mistake in the 'book value'
Is 28 mill in assets having taken off goodwill (to be cautious) then liabilities of approx 16 mill is book value of 12 mill only not 17 so you buying campany with cap of 24mill 50pc of which is book value

hence only paying 12 mill for a company that is making net income of 2 mill or operating profit of 3 mill

Still seems like quite good value if there is going to be ongoing growth
Alan Selwood
Posted: 26 May 2015 07:14:48(UTC)
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Worth also studying companies held by Giles Hargreave.

Annoyingly these days, it seems very difficult to get full portfolio breakdowns of various funds rather than '10 biggest holdings' and major buys and sells.
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Charles James on 26/05/2015(UTC)
Charles James
Posted: 27 May 2015 06:35:42(UTC)
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Since I was earlier saying Internetq was looking interesting will also share a stockpedia article I found..

I had wondered what the 50 million in intangibles were on the balance sheet and had just taken them it of the book value with the goodwill...
However I now find some analysis at stockopedia here saying this may be affecting the profit and loss statement...
So these wonderful rising revenues and profits need to be looked at carefully..which is beyond me as I don't know how to find out those details and make a reliable conclusion...so back to square one on this...
It is written here at stockopedia
http://www.stockopedia.c...tq-xlm-gls-83305/#.dpuf
I don't know how reliable that site is DYOR

InternetQ (LON:INTQ)
This is an interesting company. It's Greek, so that makes me nervous, as creative accounting seems to be popular there. The usual problems are profits that never turn into cash, and the places to look for the evidence are excessive debtors, and capitalised intangibles on the Balance Sheet. The cashflow statement is also very often most revealing.

As I reported here on 8 Apr 2014, the figures look bad to me - the company's profit has been created entirely by capitalising costs into intangibles. So as I previously reported, "for 2013 InternetQ reports EBITDA of E14.4m. However, it has capitalised E13.8m of costs into intangible assets. So reversing out the capitalised costs, in cash terms it was barely above breakeven, at only E0.6m!"

Anyway, the company has issued a very strong Q1 trading statement today, which is great if you believe their P&L figures (which I don't, for the above reasons).

I'll keep it under review, and if & when profits turn into cashflow, then I might consider a purchase. There's no sign of that yet though. It really does pay to be sceptical of all companies on AIM, and highly sceptical of overseas companies on AIM, because it's a more or less unregulated market effectively. Hence that arguably attracts low quality companies, and crooks. However, there are also several hundred excellent companies on AIM. Our job is to sort the good ones from the bad ones.

The share price has come down quite a bit from April's high of about 400p, and it remains to be seen whether today's positive trading update can reverse that trend.

- See more at: http://www.stockopedia.c...ntq-xlm-gls-83305/#.dpuf
Alan Selwood
Posted: 27 May 2015 08:33:01(UTC)
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Thinking aloud:

My impression with AIM stocks is that the really valuable ones are those where (a) they qualify for IHT exemption and (b) the people running it have a fairly large ownership of the shares and want the company to stay on AIM so that they can plan their own IHT more effectively! If they have moved to AIM from the main market and hold significant shareholdings and don't sell them, to me that could be a sign that you are on to a good thing if the ROCE [Return on Capital Employed] and Profit Margins are also high and stable, they have no debts but keep having net cash, and also pay a modest dividend.

I would certainly avoid AIM stocks from overseas companies, especially Russian/Chinese and minerals/oil/energy ones.
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Charles James on 27/05/2015(UTC)
Charles James
Posted: 27 May 2015 09:19:44(UTC)
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Hmmm this is good now I think there is some progress being made again ...I now know the class of shares I think have a good chance of being less risky and possibly great long term investments.

I searched for a list but find there isn't a definitive list and came across one company saying there may be around 700 companies that qualified for IHT out of 1100 on aim at that time.

That is quite a lot...too many to research...so I am thinking if I could just get a list of companies that have moved from the main market to aim then I could take a look them and see if the owners retained their interests in the company as there may not be so many of these since the rules changed in 2013 or so...this would be a good start...

Unfortunately, I only found one vague article from 2013 pointing out the tax benefits but no list of any companies that had done this...

Does anyone know know where a list of companies going from the main market to aim could be found?

If I can find one or two good micro cap stocks from all the time I am putting into this will have been worthwhile...will see where this leads...
Andrew James
Posted: 27 May 2015 17:33:44(UTC)
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I am not aware of a definitive list of companies that have moved back to AIM from the main market - and in any event I would be very careful with using this as a main selection tool, as the switch could be for reasons other than the IHT (and stamp duty) exemption. You would also miss out on a number of very decent companies that have started life on AIM, or moved up to that market, rather than down.

You might find the Investor's Champion website (you have to register, but it is free) of interest, as there is a specific section that lists companies for which IHT relief is available. Generally, I think that it is a useful source of information on AIM companies. I would agree with previous comments as to companies to avoid. Personally, i normally avoid any AIM stock that is not paying a regular dividend and - like many others - I currently view Chinese AIM stocks in particular as uninvestable. The track record is just shocking. Good luck.
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Charles James on 28/05/2015(UTC)
CUEBALL
Posted: 27 May 2015 18:44:05(UTC)
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Forget dreaming... just buy Marlborough micro cap and let giles'y do the (informed ) graft
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Charles James on 28/05/2015(UTC)
James Markstone
Posted: 20 July 2015 19:57:04(UTC)
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Have a look at Neil Woodford's picks - that should give some ideas. He regularly discusses on his blog page.
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Charles James on 23/07/2015(UTC)
Charles James
Posted: 23 July 2015 13:09:18(UTC)
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Thanks James ...

By way of an update to this the top stock whose name was missing from this list was mopowered -only its figures appeared when I pasted it but not the name. That has gone about 250 pc stilo and sdi also nicely up I think but the others just following the market so flat basically ...but I didn't actually buy those three as mopwoered was too much of a gamble and still not sure why it went up (no substantial info could be just hope) stilo and sdi seem to be good British companies (if remember correctly) but not much of an edge.

I went for Cambridge cognition COG with does tests for Alzheimer's and drugs via apps- own some research expanding into the USA...seems solid best tiny cap of 5 mill I think.

I particularly like FIPP frontier IP. They have a tiny cap about 12 mill based in Scotland and own IP in university spin outs stakes ranging from 1pc to about 30pc...have the feeling they are reliable and conservative in spending with fingers in a lot of pies that could turn out to be good...per reports seem to be on reasonable salaries and an experienced team...so I like them a lot (lots of disclosure great website etc)...but hard to buy the stock...hopefully not enough people pay attention to this so it won't have a material effect either way...I also like IP group...so just those three out of the list was I able to get clarity they seem like good opportunities,,,.
Unfortunately so far -it is the potential black hole or unknown of mopowered that is reorienting that is going places with stilo and sdi - they don't or didn't seem quite as certain to me...
Will see what happens after a few years...

+0.35 (10.29%) 1.00 £0.02 £0.04 +£0.02 +150.00% +£0.00 0.00%
Stilo International Plc STL 3.25 -0.25 (-7.14%) 1.00 £0.03 £0.03 +£0.01 +20.37% -£0.00 0.00%
Scientific Digital... SDI 12.00 +1.00 (9.09%) 1.00 £0.07 £0.12 +£0.05 +62.16% +£0.01 0.00%
Frontier IP Group Plc FIPP 19.50 +0.12 (0.64%) 1.00 £0.20 £0.19 -£0.01 -2.51% +£0.00 0.00%
Outsourcery PLC OUT 21.75 +0.25 (1.16%) 1.00 £0.20 £0.22 +£0.02 +8.75% +£0.00 0.00%
Cambridge Cognition... COG 80.00 +2.50 (3.23%) 1.00 £0.80 £0.80 0.00 +0.00% +£0.02 0.00%
Digital Globe Services... DGS 48.00 -2.00 (-4.00%) 1.00 £0.51 £0.48 -£0.03 -5.88% -£0.02 0.00%
Nasstar Plc NASA 8.25 -0.25 (-2.94%) 1.00 £0.08 £0.08 -£0.00 -2.25% -£0.00 0.00%
Wandisco PLC WAND 300.45 +7.95 (2.72%) 1.00 £2.64 £3.00 +£0.36 +13.81% +£0.08 0.00%
IP Group Plc IPO 210.10 0.00 (0.00%) 1.00 £2.10 £2.10 +£0.00 +0.05% 0.00 0.00%
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