By Tom Winnifrith, The Sheriff of AIM | Tuesday 14 February 2017
January 2017 was another month of shrinkage for AIM in terms of number of companies.The absolute number was down by a net 9 from 982 to 973 companies with 1 readmission and 10 departures including the fraud African Potash (AFPO) which was relegated, in disgrace, to the NEX Markets lobster pot.
The AIM index remains skewed at both ends of the market.Thus a small number of highly successfully companies such as ASOS (ASC) which at £4.4 billion now represents over 5% of the entire AIM market and the top 8 companies represent over 16% of the AIM index.The top 86 companies being those with a market capitalization of over £250 million representing over half, at 54.5%, of the AIM.
At the other end of the table, the equivalent of the non-league football clubs, are 188 (down from 202 in prior month) companies almost 20% of the total number of companies on AIM with market values below £5 million, including 21 suspended stocks most of which will never be readmitted, representing 0.5% of the AIM index.
In a way this is healthy. If more of the "non league" clubs which will never generate a cent in free cashflow and are thus in essence just, inherently worthless, gambling chips disappear that will give punters less chance to lose money. It is bad news for all the crony capitalist Nomads, brokers, PRs, lawyers and other parasites. The only real purpose of the non-leaguers is to generate cashflow for the crony capitalists and pointless jobs for useless and greedy directors.
But if AIM can attract half decent companies at the other end of the scale - and there are signs that it is doing that -it may be a far smaller "world's most successful growth market" - it is already back to levels last seen in 2004 - but it would be a less corrupt and higher quality market all round. Who knows, The Sheriff of AIM might be able to hang up his stetson and head off for retirement in Greece?
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