3 AIM stocks to buy today: 88E, VELA & HE1

Highlights 

• 88 Energy launched a A$20 million equity raise ahead of a planned appraisal of the Merlin project in Alaska.
• Vela completed a £750,000 investment in Northcoders Plc, and Vela currently accounts for 6.0% of the issued share capital in the company.   
• Helium One recently completed the exploration drilling campaign and Phase 2 exploration work at its Rukwa Project based in Tanzania.

AIM stocks provide investors with several means to leverage government-sponsored tax reliefs and other loss relief schemes.  It must, however, be noted that AIM stocks offer both higher risk and high rewards for investors. The share prices of AIM-listed stocks can move by double-digit percentages in a single day or fluctuate merely based on a single announcement.

Alternative Investment Market (AIM) was set up in 1995 and is designed for small- and medium-sized businesses that desire to list their company on the stock exchange but are not ready for a complete traditional listing. Proper and careful selection of the right stock by identifying key fundamentals and growth prospects may play an important role in improving investors’ stock-picking within the AIM.

Here we take a look at 3 AIM-listed stocks and explore the investment prospect in them.

88 Energy Limited (LON: 88E)

88 Energy Ltd. is an oil and gas exploration company focused on the exploration and development of mineral properties in the Alaskan region. On 31 August 2021, 88 Energy Ltd launched a A$20 million equity raise ahead of a planned appraisal of the Merlin project in Alaska. The company is scheduling drilling operations at the Merlin-2 appraisal well in Q1 2022.

As of 30 June 2021, 88 Energy held A$14.8 million cash and zero debt compared to A$14,845 million on 31 December 2021. For H1 2021 (ended 30 June 2021), the company’s profit stood at $445,446 compared to a $4.020 million loss in H1 2020.

88 Energy shares traded at GBX 1.62, down slightly by 2.06% at the close of trade on 31 August 2021. The company’s shares gave a return of 464.85% in the last one year to shareholders, and the market capitalisation of the company stood at £224.03 million.

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Vela Technologies Plc (LON:VELA)

Vela Technologies is engaged in investing in early-stage disruptive technology businesses. Recently, Vela completed a £750,000 investment in Northcoders Plc, and it currently holds 6.0% of the issued share capital in the company.   

For the year ended on 31 March 2021, Vela Technologies held £9k of cash (31 March 2019: £23k). The company’s total comprehensive income for 2020 recorded a loss of £1,412k (2019: £1,554k loss) due to fair value losses on the company’s investment portfolio.

Vela Technologies shares last traded at GBX 0.10, up by 2.70% on 31 August 2021. The company’s shares gave a return of 91.92% over the last one year to shareholders, and the market capitalisation of the company stood at £12.99 million.

Helium One Global Ltd (LON:HE1)

Helium One Global Limited is a helium exploration and development firm. On 26 August 2021, Helium One completed the exploration drilling campaign and Phase 2 exploration work at its Rukwa Project based in Tanzania.

As of 31 December 2020, the net cash balance of Helium One was recorded at $6,584,886 (31 December 2019: $577,997). For H1 ended 31 December 2020, the company reported a pre-tax loss of $3,886,357, compared to $1,594,765 for the same period in 2019.

Helium One Global shares last traded at GBX 9.00 at the close of trade on 31 August 2021. The company’s shares gave a year-to-date (YTD) return of 24.57% over the last one year to shareholders, and the market capitalisation of the company stood at £56.01 million.

Conclusion:

The lifting of lockdown restrictions resulted in the reopening of various sectors of the economy. For instance, shares of companies engaged in exploration activities surged on the back of the resumption of operations. Additionally, the growing need for digital transformation is boosting investments in technology.