Aimzine is a FREE online magazine for investors and everyone involved with AIM companies. If you are not already registered to read Aimzine please click HERE

The Aim market has been in a long decline since July 2007, but the positive price action seen during April has indicated that things really are changing. During the month to date 59 Aim-listed companies have seen their shares double in price whilst only 5 have seen their prices halve. As reported elsewhere our list of 25 companies previously featured in Aimzine have seen an average increase of 17.8% in the month.

It has been very noticeable to market watchers that Aim’s short-term traders are back in action. These people will pick up shares in companies that are rising quickly and sell them a matter of days and sometimes hours later. With some very strong moves in the market they have been able to make some good profits. Whether you approve or disapprove of the short-termers the increased liquidity is welcomed.

Some of the shares which have made substantial gains have more than doubled without any news being issued to the market. Several companies, such as Northacre (NTA) and CSS Stellar (CSS), have been forced to issue statements to say that they were unaware of any reason for the movement in their share price. In our view, the reason for many of these huge rises is simply that the shares have been sold down to ridiculously low levels and that buyers are gradually returning to the market. Take, for example, paper maker Inveresk(IVS) whose shares had fallen from 18 pence two years ago down to 0.75 pence at the beginning of April 2009. During the last two weeks of April the shares have risen by 250% to 2.625 pence and yet there has been no news released by the Company.

Takeover Activity

April has also seen an increase in the number of companies in takeover talks. We were particularly interested to see that AIM-listed Renewable Energy Generation (RWE.L) disclosed that it was ‘in discussions regarding a possible offer for the entire issued share capital of the Company’.

Alex Race who writes Aimzine’s ‘Lean towards Green’ articles commented: ‘Whilst the renewable energy sector of AIM has remained relatively dormant in the area of mergers and acquisitions, this could well be set to change. As mentioned in the introductory article to the ‘Lean Towards Green’ series, many AIM listed renewables companies have spend their formative years haemorrhaging money, not endearing themselves to potential acquirers. Now matured, some of these companies are increasing revenue and starting to make a profit. If their market capitalisation figures do not start resembling the underlying value, such companies could start being viewed as attractive targets in an increasingly competitive market.’  Read this month’s article in the 'Lean towards Green’ series here.

New Head 

One man who will be very pleased with the improving market performance is Marcus Stuttard, who has just been appointed by the London Stock Exchange as the new Head of AIM.  Marcus was previously Deputy Head of AIM and brings 15 years experience at the London Stock Exchange to the role.

Marcus Stuttard takes over this role from Martin Graham who stepped down from the Exchange last week after five years during which he led AIM through a period of major growth and international success. Going forward Marcus will be responsible for the overall strategy of AIM and its continued development as a global growth market. 

During the month to date 59

Aim-listed companies have

seen their shares double in

price whilst only 5 have seen

their prices halve

Impressive April

During April (up to the 29th) the Aim All Share index has increased by a stellar 14.0%, strongly out-performing the FTSE 100 index but slightly lagging the FTSE 250 which showed a gain of 15.4%. As I write this article on 30 April all of these indices are showing yet further strong gains bringing April to an impressive close. 

However, the gains in these indices are put in the shade by the truly astounding performance of the FTSE Small Cap index which has shown a 28.5% gain in April – Small certainly was beautiful this month.

Discuss this article on Aimzine Social

RETURN TO AIMZINE NEWSLETTER HOME | May 2009