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.
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.
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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