AIM for Growth

Transport is integral to our everyday lives as it allows us to get to work, visit friends and explore new places. As a result, it presents an interesting sector full of attractive investment opportunities. In this article, I look at how the electric vehicle (EV) market is driving transition in the automotive industry, presenting a new source of growth as fossil fuel vehicles are phased out as we move towards a low-carbon economy. Key geographical players currently dominate the EV market include German BMW and Volkswagen, US-based Tesla, BYD in China and Japanese Nissan. These companies are making progressive developments with Tesla launching earlier this year its Model Y, an electric seven passenger vehicle and more recently its Cybertruck. With global supply chains, these companies can efficiently tap into the global EV market. Nissan for example have pushed their Nissan Leaf into the Indonesia market last year, with the Philippines market in the pipeline for later this year.

In today’s blog I look at the investment case for Smith and Nephew, a FTSE 100 pharmaceutical giant with a market cap of £14,730 million. Since 2015 the stock has returned over 90% and continues to look attractive going forward. It may not provide the super growth that AIM stocks could potential deliver, but it does provide diversification for your portfolio to balance out risk of investing in small- and mid-cap companies. DEMAND The company has three sectors that it specialises in which are orthopaedics, sports medicine and advanced wound treatment. For example, this includes equipment used in operations for knee replacements and rotator cuff repair. The demand for these business sectors should continue to grow regardless of UK economic conditions, as healthcare is of increasing importance. This is supported by the global trend which can be seen in developing countries such as the US, Smith and Nephew’s highest market by revenue, are moving towards an aging popul