Safe AIM Stocks 3 – AIM 100 2016

AIM 100

Last week we looked at AIM IHT planning from the bottom-up, using magazine articles and asset manager reports. Today we look at the AIM 100 for 2016.

AIM 100 FOR 2016

Two weeks ago we started to look at the AIM 100 for 2016, as the 2016 article was still behind the Investors Chronicle pay wall.

Last week we took the opposite approach, using magazine articles and asset manager reports to build up a list of 44 AIM stocks that qualify for BPR.

Today we’re going to look at the AIM 100 for 2016 – it’s out from behind the pay wall – to find some more candidates.

The IC started off by pointing out that the AIM 100 has outperformed over the past 12 months.

It’s true, but I wouldn’t read too much in to such a short period, and during one of the most difficult years for investing during my lifetime.

AIM 100 outperformance

1 TO 10

Asos – already included (bottom-up)

GW Pharmaceuticals – already excluded (second listing on Nasdaq)

Abcam – already included

Hutchison China Meditech – Maybe (loss-making, expensive)

Dart (airlines / holidays) – Maybe

James Halstead – already included

Breedon Aggregates – Maybe

Fevertree Drinks – Maybe (expensive, takeover risk)

New River Retail – already excluded (property)

Plus500 – CFD broker – probably doesn’t qualify

So just four new Maybes from the first ten stocks.

 

11 TO 20

Clinigen – Pharma – Maybe (loss-making, expensive)

EMIS – already included

Mulberry – already included

4D Pharma – Maybe (loss-making, expensive)

Vinacapital Vietnam fund – excluded (investment fund, moved to main market)

Secure Trust Bank – excluded (bank)

BooHoo – online retail – Maybe

Redde – accident services provider – Maybe

CVS Group – already included

Nichols – already included

So another four new Maybes from this group of ten.

 

21 TO 30

Burford Capital – excluded – I’m taking a low-risk approach here, in case funding litigation falls foul of the “no investments” rule.

Summit Germany – excluded – German property investment

RWS Holdings – already included

Impellam – recruitment – Maybe

Gamma Communications – already included

Safecharge international – digital payments – Maybe

Advanced Medical Solutions – already included

Patisserie Holdings – Patisserie Valerie cake shops – Maybe

Staffline Group – already included

First Derivatives – excluded – data analysis and trading software

Only three from this group, taking us up to 11 Maybes from the first 30 stocks.

 

31 TO 40

Conviviality – Bargain Booze retailer – Maybe (expensive)

Sirius Minerals – excluded (mining)

Young & Co’s Brewery – already included

Polar Capital – excluded (asset management)

Smart Metering systems – already included

GB Group – already included

Amerisur Resources – excluded (oil exploration)

Sirius Real Estate – excluded (German commercial property)

Scapa – already included

Fyffes – already included

Only one from this group, which brings us up to 12 Maybes from the first 40 stocks.

 

41 TO 50

PurpleBricks – hybrid estate agency – Maybe (loss-making expensive)

Pinewood – studios – Maybe (takeover / main listing?)

Restore – already included

Majestic Wine – already included

Johnson Service Group – textile Services – Maybe

Redcentric – IT managed services – Maybe

Applegreen – petrol forecourt retailer – excluded – too much activity in Ireland

Iomart – data centres and cloud – Maybe

Victoria – carpets and flooring consolidator – Maybe

Oakley Capital Investments – excluded (private equity)

A bumper crop of six from ten this time, taking us to 18 from 50 overall.

 

51 TO 60

OPG power ventures – excluded (energy generation in India)

FW Thorpe – already included

Pantheon Resources – excluded (oil and gas production)

Telford Homes – already includes

Telit Communications – internet of things – Maybe

Vinaland – excluded (Vietnam Real Estate)

Brooks Macdonald – excluded (Wealth management)

Renew – already included

Benchmark – animal health – Maybe (loss-making, expensive)

Manx Telecom – already included

Only two from this set, taking us to 20 from 60 overall – 1 in 3.

 

61 TO 70

Gemfields – excluded (emerald miner)

Alliance Pharma – already included

Powerflute Oyj – packaging and paper – Maybe

Vernalis – biotech – Maybe (loss-making, expensive)

Verseon Corp – biotech – Maybe (loss-making, expensive)

Pan African Resources – excluded (gold miner)

Camellia – excluded (conglomerate, including financial services)

M&C Saatchi – already included

Vertu motors – car dealership – Maybe

Numis – excluded (broker, corporate adviser)

Another four this time, although two are loss-making. We have 24 from 70.

 

71 TO 80

Highland Gold – excluded (gold miner)

Accesso – e-ticketing – Maybe

SafeStyle – Windows and Doors – Maybe

Gooch & Housego – already included

MP Evans – already excluded

Curtis Banks – excluded (SIPP provider)

Craneware – excluded (hospital software, mainly in US)

Eco Animal Health – animal medicine – Maybe

Arbuthnot Banking – excluded (banking)

Faroe petrolum – excluded (oil explorer)

Only three this time. We are at 27 from 80.

 

81 TO 90

Epwin – home improvement products – Maybe

Pacific Alliance China Land – excluded (Chinese property)

Idox – workflow software – Maybe

Xeros Technology – hi-tech washing machines – Maybe (loss-making, expensive)

Central Asia Metals – excluded (miner)

Mortgage Advice Bureau – mortgage broker – Maybe

KBC Advanced Technologies – excluded (taken over)

Inland Homes – excluded (housebuilder, but also trades land)

Personal Group – employee benefits packages – Maybe

Alternative Networks – already included

We picked up five from this section, so we are at 32 from 90.

 

91 TO 100

Blanco Technology – excluded (data erasure, but mostly in US)

Sinclair Pharma – plastic surgery – Maybe (loss-making, expensive)

Next Fifteen Communications – already included

LXB Retail Properties – excluded (property, in liquidation)

SQS Software Quality Systems – excluded (software testing, loss-making, has dual listings)

RM2 international – exlcuded (super pallets, Luexbourg based)

Avanti Communications – satellites – Maybe (loss-making, expensive)

Park – gift cards and vouchers – Maybe

Conygar – excluded (commercial property)

Matchtech – recruitment – Maybe

We’ve added another 4, to bring the final tally to 32 from 100.

 

CONCLUSIONS

AIM 100 2016 1 to 12

AIM 100 2016 13 to 26

AIM 100 2016 27 to 36

I’ve listed the stocks above in order of market cap, including the ineligible ones that we didn’t cover last week.

  • Of the 32 that are eligible, the average (mean) market cap is £350M, and the median is £273M, which is fine.
  • The average (mean) PE is 53 and the median is 33 – so these stocks are even more expensive than the ones we looked at last week.
  • However, 10 of the 32 stocks are loss-making, and so are unlikely to make it into the final portfolio.
  • This should bring the average PE down a little.

Next week we’ll look at combining the two lists and filtering them down from the current 80 stocks to the target of 50.

 

Until next time.

This article was written by Mike Rawson  http://the7circles.uk/safe-aim-stocks-3-aim-100-2016/

 

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