10 AIM stocks for your ISA
9th August 2013 17:20
by David Prosser from interactive investor
Share on
With AIM shares now allowed in ISAs, find out which of the companies hoping for an investment boost are exciting the experts.
Paul Mumford, manager, Cavendish AIM fund
Ithaca Energy
" sits in the oil and gas exploration sector, but one of the things I like about it is that it is really more of an exploiter of identified reserves. It operates in the North Sea and recently took over Valiant Petroleum. It sold many of Valiant's exploration assets but has retained the Norwegian side of the business, because the Norwegian government refunds 80% of oil companies' drilling costs."
Keywords Studios
"Keywords is a business in the machine gambling sector. It sounds horrible, but it's a bit different. It's the company many large gaming companies use for translation as they develop their machines for use in different parts of the world, a job that is almost always outsourced. It's growing very quickly and didn't really need the cash raised in its recent IPO, but several shareholders wanted to sell some shares."
Popular AIM-listed firms such as Gulf Keystone Petroleum and Sirius Minerals can now be included in ISAs. To discover which other stocks investors could consider, read:AIM stocks for your ISA.
Zytronic
"Although had a profits warning as recently as May, I'm a fan of the company, which has bounced back on news that it is close to signing a contract with a major fizzy drinks company. The business, which is based in Gateshead, manufactures touch screens for industrial customers and already counts Coca-Cola as one of its biggest clients."
Advanced Medical Solutions
" is at the safer end of AIM. It has two fantastic products: bandages made from silver and seaweed, which are highly durable and can reduce scarring; and a superglue that can be used instead of stitches to close wounds more effectively to infection, allow more delicate work and reduce the need for patients to return to hospital. Both products are selling well. AMS could become an acquisition target for one of the large pharmaceutical companies."
Graham Neale, partner, Killik & Co
Young & Co
"A recent trading update showed like-for-like growth in managed pub estate remains among the best in the industry. With London's economy still performing better than the rest of the UK, the company' s refocus towards more food-centred pubs looks to have been a prescient move."
Our resident stockpicker considers five more proven businesses that could be included in an investors' ISA portfolio. To find out which these are, read:Edmond Jackson's Stockwatch: Five AIM shares for an ISA.
Advanced Computer Software
" reported strong results in June and declared a maiden dividend. The company has continued its acquisition policy and recently bought rival software firm CSH, greatly expanding its client base in the legal service and not-for-profit sectors."
Phil Wong, stockbroker, Redmayne-Bentley
SQS Software Quality Systems
" is the world's largest specialist supplier of independent software testing. It recently reported a 40% rise in pre-tax profit for the year to 31 December 2012. Gross margins were also higher at 31.2%, and the group has reduced its net debt position to €7.9 million (£6.8 million) compared with €12.3 million a year earlier. The group has a diverse and highly reputable customer bank."
Alliance Pharma
" is following an acquisition strategy, with some opportunities at an advanced stage. Its recent acquisitions include the anti-malarial drug brands Paludrine, Avloclor and Savarine from for an initial consideration of £4.2 million. The group expects these acquisitions to be earnings accretive over the next few years."
Gooch & Housego
" is a specialist manufacturer of optical components and systems with a strong order book underpinned by wins in the aerospace and defence sectors. The company's position in Asia has improved. Exposure to the stock is a way to play the global growth theme."
Majestic Wine
" is a strong cash-generative business focused on new stores, business customers, e-commerce and fine wine for its future growth strategy."
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.