7th August 2014
The Share Centre has tipped three AIM shares to coincide with the anniversary of the shares being allowed to be held within an Isa. The three firms are Breedon Aggregates, Anpario and Amerisur Resources.
The Share Centre points out that investment in AIM shares via an ISA continues to increase with 30% of AIM shares purchased since last August are in an Isa.
Graham Spooner, investment research analyst at the Share Centre says: “Since investors were able to purchase AIM shares in ISAs we have seen a 5% increase in the number of AIM stocks purchased through The Share Centre, of which 30% are in ISAs. This signals that the change in regulations has increased interest in the lower market cap companies, with 6% of our ISAs now holding AIM.”
“As AIM shares often offer investors strong growth potential, albeit at a higher risk, many investors are taking advantage of being able to protect these potential profits from Capital Gains Tax (CGT)”.
The firm says that the most popular AIM shares in ISAs are Monitise, Quindell, Gulf Keystone Petroleum, Earthport and Amerisur Resources.
Spooner has picked Breedon Aggregates, Anpario and Amerisur Resources as his preferred AIM picks from The Share Centre’s buy list and assesses them below.
“Breedon Aggregates is a smaller AIM listed company geared to a recovery in infrastructure spend and is for investors prepared to take a longer term view. Despite sluggish infrastructure spend, Breedon Aggregates has seen margins improve, helped by lower costs, stable pricing and acquisitions. The company is positioning itself to benefit from any pick up in the economy and demand for its products.
“A number of acquisitions have been made which should help expand the company’s geographical presence in the UK and management expects these to make a significant and improving contribution. As a result of continued recovery in the UK construction sector, the share price has risen by around 40%, with much of this growth coming from housing. In the latest update in July the company expressed confidence that further progress would be made in the second half of the year.”
“Anpario is a tiny UK company trying to build a name for itself as an international producer of value-added natural feed additives in an industry where there is limited choice for investors. We recommend Anpario as a ‘buy’ for higher risk investors looking for a long term niche idea. The company already has a respectable geographical spread which helps offset regional, financial and geopolitical concerns. The growing pressure on feeding the world’s population and demand for meat protein is unlikely to recede and Anpario is positioned to benefit from this.
“Anpario highlighted a good start to the year and its April results reported improving profits as a result of both organic growth and the 2012 acquisition of Meriden.”
“Amerisur Resources is a small oil and gas exploration firm which operates in a potentially unstable region, so it represents a very high risk investment. The company has made significant progress in terms of exploration in recent years, turning exploration projects into productive assets. Production only began at its Platanillo field in southern Colombia in 2012 and has now reached to 7,000 barrels of oil equivalent per day.
“Amerisur Resources’ fields are all set for more seismic and drilling activity and the company remains positive on their prospects. With production increasing at a rapid rate, the company is expected to build on last year’s performance with net margins predicted in the region of 45%. The company also has no debts on its books. With a forward price to earnings ratio of 12 times the valuation, Amerisur Resources compares favourably against its peer group.”