looking for an investment on AIM, any recommendations?

Answer 1

How much risk are you prepared to take? What follows is only a suggestion, not a recommendation.

I have about half my portfolio in IndigoVision (IND.L) so I have aa vested interested. For goodness sake don't do anything based on what I say here but check it out yourself.

The shares are currently between £8 and £8.50 each. Not long ago someone bought 100,000 shares at £10 so they had some confidence in the company.

The company is at the interesting stage where turnover is almost doubling each year. This will obviously not last long but the market is huge. They have a highly sophisticated digital CCTV system operating over IP. Some of their customers are impressive. For example, they covered the Athens Olympics, two Winter Olympics, some G8 conferences, various airports (Luton is fully on their system) and are now selling to railways.

Why isn't everyone piling in? Well they have only just moved into profit so the published figures do not look brilliant. They are increasing the sales force so some expenses are rising.

And there is always the risk that someone else will develop a better system.

Look on the Motley Fool and even ADVFN. There are some reasonably sensible discussion boards about this company. Then start using your favourite search engine to research it properly.

Answer 2

Aim stocks are notoriously risky. The advantage is you pay no inheritance tax on them.

I was speaking to a trader from the US who dabbles in these kind of "penny stocks" and the way she trades them is pretty amazing. She as a piece of software that ploughs through all these kind of stocks with the parameters she has set. The parameters are set to look for small cap stocks that are due a move. For obvious reasons I am not going to post her parameters on a public website.

From the 20 stocks that are thrown up from her "system" she then technically breaks down the charts to whittle the stocks down to 5. She then bungs $500 on each stock. She is an active professional trader and calls them "lottery" tickets. She knows that 3 out of 5 are going to wipe out her $500, she knows that one will break even and then the last one will be the meal ticket.

I trade techincally and don't look at company fundamentals...hence I rarely touch stock. However, what you find with AIM stocks is that once they get on a run they generally keep going. If say for example you are on a tech stock and Microsoft takes a hit, or something happens in that Tech sector, your AIM Stock is very vunerable to huge moves against you. You actually see a 2000% return wiped out in 24 hours !! Don't believe me ??? IT HAPPENS. The returns on these stocks can be crazy, but they are very prone to huge moves on little or no news.

Answer 3

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/ed075

Answer 4

How about Manchester City Football Club?
Now the Thai deals going pear-shaped, they'll be looking for another mug -billionaire to fund some more wayward spending on the transfer market.

Answer 5

Buying shares on AIM is like horse racing - if you don't know anything about horses (Companies), you will loose your shirt :-)

If you are serious, you need to do your own research ...

Me ? I would put my money in a Stocks&Shares ISA and buy an Index Tracker.