Which aim shares to buy

Its share price has seen significant growth in value with growth over the past year rising by As well as being involved in an ever-expanding sector, Fonix also boasts high returns on capital employed. Companies that achieve this typically create high returns for shareholders. Needless to say, investors need to tread cautiously. Fonix CEO Rob Weisz said the company started debating the possibility of an initial public offering in the first half of We think we offer investors a proposition that straddles different needs: we pay dividends, which is attractive to income seekers, but we also offer significant long-term growth prospects.

So what do you think? Does Fonix have what it takes to maintain its strong winning streak and claim a position in your investment portfolio? Its goal is to forge long-term mergers with developers and monetize successful games across several platforms. One example is the puzzle game Hello Neighbour.

Online gaming is one of the most popular industries that is expected to keep developing and growing at a fast pace. However, while there are no guarantees that tinyBuild will continue to do well, this is the case with all investments.

Its stock is also valued at 49 times expected earnings. Generally speaking, only optimistic investors find this type of valuation is typically reasonable. A fairly limited free float total shares available for retail investors to purchase in the stock market also suggests the share price could experience volatility moving forward. The company also brandishes an impressive balance sheet — one of the key metrics investors look for when purchasing small-cap AIM shares.

Its main aim is to develop solid-state batteries for EVs and the Internet of Things. These solid-state batteries have several advantages over conventional lithium-ion batteries, including less time needed for a full charge, longer battery lifespan, and non-flammability.

Therefore, mainstream adoption appears to be highly likely especially with the growing demand for renewables. Nevertheless, ilika is down This arguably makes IKA shares a viable option for risk-tolerant investors. Whether or not you add Ilika shares to your portfolio depends on your sentiment and whether you believe the company has a strong foothold in the renewable energy sector with its solid-state battery offerings.

Furthermore, if markets make a u-turn over growing concerns about rising inflation, blue sky stocks such as IKA could suffer more than others. On the other hand, this could prove to be the best time to place a bet if investors are willing to hurry up and wait for the potential returns in the long term. Kudos is in order if you managed to invest in Zephyr Energy in the final quarter of ZPHR shares have skyrocketed by With Zephyr Energy nearing a week high, investors and shareholders are probably unsure of where the share price will go next.

Does this make it the perfect time to invest? The stock has been on a downtrend since April, despite its tremendous gain throughout last year. While the Open Orphan share price has dropped by Despite the sluggish reaction to the Open Orphan share price, the recent earnings report gave us insight into strong signs of positive growth. Moreover, as a result of better margins, this increase in sales allowed the CRO pharmaceutical services company to become operationally profitable. This unprecedented growth seems to be driven by the ongoing challenge trials combating influenza and other respiratory illnesses besides the coronavirus.

That is to say, smaller companies that are either too small or young to join the main market — London Stock Exchange will instead float on the junior market — AIM. The AIM as an exchange was actually only launched in However, although this illustrates that the AIM has grown significantly since its launch in , it is still substantially smaller than its London Stock Exchange counterpart.

For example, the likes of AstraZeneca alone are worth more than the entire firms that constitute the AIM! In terms of getting your hands on AIM shares, the process works largely the same as any other stock investment. That is to say, you will need to find an online broker that gives you access to the AIM exchange. Then, upon opening an account and depositing funds, you will need to choose which AIM shares you wish to buy. Much like any investment, the overarching motivation of buying AIM shares is to make money.

One of the main reasons that companies opt for the AIM is because they are simply too young and small to meet the requirements of the London Stock Exchange. Crucially, the London Stock Exchange has a significant number of regulatory demands that it expects from all new constituents.

As up-and-coming companies are unable to meet these demands, they opt for the AIM. And here lies the key point — the AIM provides a gateway for investors to buy shares in companies that are still in their infancy.

If the respective firm goes on to make it big — then the investor will have entered the market when the stocks were super cheap. A great example of this is ASOS. With that being said, you need to ask yourself whether or not you would have invested in an online clothing company at the turn of the century. By this, we mean that nobody could have foreseen that online shopping would have become as dominant as it now is.

As such, investing in AIM listed shares is often a case of looking into the future and assessing where you think the company will be in the next decade or two! Once you begin the research journey in your hunt for the best AIM shares to buy in , you will notice that a lot of companies are involved in innovative products and services.

In other words, these companies are looking to make it big in a sector or industry that is to take off. For example, you will find heaps of firms that are looking to revolutionize the global energy industry. This includes everything from solar panel producers, wind farms, and even waste-to-energy technologies. The key takeaway is that although renewable energies constitute such a minute proportion of the wider global energy scene — this might not be the case in years.

As such, if you are a firm believer of green and sustainable energies — and you think the sector will play a major role in how we view energy in the future, the AIM gives you exposure to such companies at a very early stage. There are many types of investor profiles. At one of the spectrum, some investors will strive to minimize their risk as best as possible.

This means that they will invest in strong and stable blue chip stocks or bonds. In turn, the ROI is going to be relatively small. At the other end of the spectrum, some investors prefer to chase a higher risk vs reward ratio. In simple terms, they are prepared to take higher levels of risk to generate higher returns. If this sounds like you, then the best AIM shares are likely to be of interest.

Below is a list of the largest stocks listed on AIM as of 3 October The table outlines the share price movement for each stock over the last 12 months, as well as the month high and low to help demonstrate the volatility of each stock.

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Make your first investment or place your first trade. Boohoo Boohoo was established in and has grown into one of the leading players in the online fashion industry. Fevertree Drinks Fevertree Drinks , which produces premium mixers for alcoholic beverages, has been a soaring success since listing in , having more than trebled in value since the middle of Abcam Abcam produces and sells protein research tools that are used by life scientists.

ASOS ASOS has been one of the biggest beneficiaries of the transition to online shopping that has left bricks-and-mortar retailers struggling. Hutchinson China MediTech Hutchison China MediTech is a biopharmaceutical company pursuing treatments for oncology and immunological diseases.

Sector Market cap 12 month share price movement 12 month high 12 month low Share price as of open on 7 October Boohoo. Seize a share opportunity today Go long or short on thousands of international stocks. Increase your market exposure with leverage Get spreads from just 0.

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Stay on top of upcoming market-moving events with our customisable economic calendar. Learn to trade News and trade ideas Trading strategy. Ewan Millar, head of AIM at investment manager Brooks Macdonald, says the market's success is down to its relatively low exposure to what he calls the 'old world economy' — sectors such as oil and gas, mining and heavy industrial businesses.

The AIM market has also proved resilient when it comes to paying dividends to shareholders. He says: 'AIM is the envy of the world in terms of its depth and scale. AIM is a huge market with listed stocks so it can be hard to pick winners. Brooks Macdonald's Millar says: 'Businesses which have been able to carve out market leading positions within the niches that they operate — preferably on a global perspective — tend to be the most lucrative companies to invest in.

Lee Wild, head of equity strategy at wealth platform Interactive Investor, also likes kettle safety control group Strix, growth consultancy Next Fifteen and engineering infrastructure business Renew Holdings.

All fit Millar's template of niche market leaders. Wild adds: 'All three have been brilliant in terms of share price performance, but they also pay dividends to shareholders. He says: 'The prospects of some AIM-listed technology and meditech stocks actively improved during Covid. But at times like this, smaller businesses are often better positioned to dodge the bullets. While AIM might have spawned household names, of course it doesn't follow that every company is a guaranteed success story.

Brooks Macdonald's Millar says the expansive nature of the index means it is easy for investors to make a mistake. Millar warns that oil exploration, loss making biotechnology stocks, and companies working in hydrogen fuel cell production are prone to volatile share prices. She says: 'Most of its constituents are smaller, growing companies — typically at an earlier stage in their corporate life than those listed on the main market.

AIM is therefore riskier and won't appeal to cautious investors. Essentially, if certain not all AIM shares are held for at least two years, they are exempt from inheritance tax when the owner dies.

While picking individual stocks on AIM can be lucrative, it is hard to negotiate the large number of them on the market. The heightened risk means it is important not to put all your eggs in one basket.

Ryan Hughes of wealth manager AJ Bell says: 'There are hundreds of companies to choose from and therefore going down the fund route is sensible. Matthew Read, senior analyst at financial research group QuotedData, agrees. He explains: 'AIM companies tend to have lower financial reporting requirements. There are no funds exclusively invested in AIM stocks, but many smaller company funds have holdings.