AIM for Growth

Big data is becoming increasingly prevalent in everyday lives. It’s influencing all aspects of life, with an increasing reliance on technology such as smartphones and the growing usage of the internet of things (IoT) such as Amazon’s smart speaker Alexa. This has caused large inflows of big data that companies can use to their advantage, presenting a variety of investment opportunities. BIG DATA INDUSTRY  According to the International Data Corporation (IDC), worldwide revenues generated from big data are forecasted to increase by 12% from 2018, reaching $189.1 billion in 2019. Furthermore, looking specifically at the software and services sector, big data market revenues are projected to rise from $42 billion in 2018 to $103 billion by 2027. Positive forecasted growth is reflected by the amount of high performing companies that populate this sector in the FTSE AIM All-Share. Geographically, the United Kingdom will become the third-largest generator of big data ana...

In this blog I look at different funds, providing insight for personal investors. The advantage of funds is that they allow retail investors to pool investments so that they can spread risks by having access to a wider portfolio than they otherwise would be able to by themselves. GLOBAL TECHNOLOGY This blog will focus on funds specifically targeted at the Global technology market, with an emphasis on US technology companies such as Microsoft, Facebook and Alphabet (Google). For private investors in the UK, it can be expensive to invest abroad with higher costs such as currency exchange costs. However, by focusing on the UK in isolation limits your geographical asset allocation. This could increase investment risk but also decrease the potential investment opportunities on offer from foreign markets such as the US. FUNDS Three funds that look of interest are Polar Capital Global Technology, Janus Henderson Tech, and AXA Global Tech. I will look at each of the funds' equity ...

In March I invested in the challenger law firm Keystone Law. Though performance has only seen a slight upturn with a 6% increase since my investment, I still believe that the AIM stock has a bright future going forward. The company historically has done very well, with a rise of 174% since it first listed on the AIM market back in late 2017 and now has a market cap of £163 million.  DISRUPTIVE MODEL Keystone Law as referenced are situated in the legal services sector but offers a different approach to other law firms, using ‘technology and modern working practices’ to disrupt the industry. The firm's business model relies on self-employed lawyers who work from their own offices but are supported by Keystone Law's head office, allowing them to focus on value-adding and revenue-generating legal services. In return, Keystone Law charge 25% on fees generated. The company is underpinned by solid valuation metrics, with an operating margin of 11% and a return o...

A stock that I have been following for a while now is growth AIM small-cap stock Bioventix, who specialise in sheep antibodies and currently has a market cap of £191 million. The shares currently trade at over £38, which appears expensive at first glance. However, the company has performed extremely well over the last 3 and a half years since 2016, producing a return of 197% for investors. To better understand the stock’s investment potential, investors need to look deeper into the company, researching areas such as its current business model and current financial situation. This will provide a clearer understanding as to whether the stock will provide future returns.  BIOTECHNOLOGY The firm operates in the biotechnology space, specialising in antibodies produced from sheep for use in diagnostic applications, for example, in the testing of drugs of abuse. Some of its top clients include Siemens and Philips, which supply testing machines to hospitals.  The...

When investing in the UK market I normally focus my research on FSTE AIM stocks as I think this is where greater growth can be found as the FTSE 100 is very well covered in comparison to small and mid-cap stocks. This means that the market has priced in future growth for the relevant companies.  However, the FTSE 100 does offer a variety of companies that can provide a good source of steady growth to mitigate risk in your portfolio against smaller, higher-risk growth stocks. A FTSE 100 giant that I think will do well over the long term is Experian, providing a steady stream of growth to support an investor’s portfolio.  WHAT THEY DO? Experian is a global information servicing company, supplying global services to over a billion people. They are most famous for their credit checks business, currently one of the top three credit checking agencies globally, but they also offer a variety of information processing services.   From an investment perspective, th...