Wednesday 23 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


AIM enjoys its least bad month for years

By Tom Winnifrith, The Sheriff of AIM | Thursday 9 March 2017


 


In February 2017, AIM lost six companies and gained six companies including 1 readmission leaving membership static at 973 companies. To see a month go by without a net loss of companies on "The world's most successful growth market" will be seen as a triumph and the champagne corks will be popping in Paternoster Square.

Two notable departures were China fraud Jiasen International (JSI) and high profile basket case United Cacao (CHOC) . There demise has to be seen as leading to a net improvement in the quality of the market.

The proportion of international companies listed on the AIM index as percentage of total has declined from 22% of all AIM index or 347 companies in 2007 to 169 companies or 17.3% of the AIM index. No doubt the China frauds have contributed to reluctance of investors to support international AIM companies and their departure as well as the demise of a raft of dual listed Aussie and Canadian piss poor resource juniors is no bad thing.

The bottom end of the AIM index i.e. those with a market value below £5 million now comprises 192 companies (up 4 from January 2017) including 21 suspended stocks most of which will never be readmitted. that represents just 0.5% of the AIM index by market cap. If AIM can manage to lose most of that junk and replace it with proper companies of a size that makes listing worthwhile and which generate cash, then it could start to become interesting again.

But there is still a way to go before we reach that point for the casino.


Filed under:



This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.


Comments

Comments are turned off for this article.




Site by Everywhen