Is AIM a spent force?

Wednesday, 11th March 2009 13:03 - by GedW

I hardly think so, but offers up tremendous value instead. I am sticking my neck out here by suggesting we should see some very positive recovery in 18 months time. This presents the savvy, non risk-averse, long-term investor with a golden opportunity to sift through those Alternative Investment Market (AIM) stocks that have been unfairly bashed and battered in the current recession. What to look for? o Companies that have maintained turnover and which, pre-recession, had rising turnover. o Companies with large loans are not to be ignored, providing they are comfortably within the loan covenants and servicing the interest. This indicates, to me, confidence in their prospects from lenders. I will be looking at companies that are in a robust sector and ripe for consolidation and those holding assets that the expected global growth will require. One more thing to look out for! - Those taking a rather significant position on the share register and continuing to accumulate shares drip-by-drip, or blink-by-blink as I call it. This is not an exhaustive list, but is a lead-in to the general debate about the efficacy, or not, of investing in AIM and its companies.