Synairgen, Advance Energy & Arena: 3 buzzing AIM stocks to buy

Highlights

  • The consumer price index (CPI) surprising declined in September 2021 to 3.1% from 3.2%, despite the energy crisis in the country leading to a rise in fuel and transport costs.
  • Arena Events Group Plc has agreed to a takeover bid by Theta Bidco Limited.

The London stock market remained largely unimpressed with the release of the UK’s inflation number on Wednesday, which showed a fall in price rise in the country. The consumer price index (CPI) surprising declined in September 2021 to 3.1% from 3.2%, despite the energy crisis in the country leading to a rise in fuel and transport costs.      

The latest figure is still above the Bank of England target of 2%, which keeps investors guessing whether the central bank will hike the interest rate at its next policy meeting on 4 November 2021.

Some AIM-listed stocks like Synairgen plc, Advance Energy, Arena Events Group Plc traded higher. Let us explore their investment prospects:

Synairgen Plc (LON: SNG)

FTSE AIM-listed company does research and development of drugs to treat respiratory diseases. In addition, the company is also developing antiviral inhale treatment which is delivered directly to the lungs to cure Covid-19.

The company’s SNG001 formulation, which contains broad spectrum antiviral protein to treat viral lung infections, is recommended by the data safety monitoring board (DSMB) for phase-3 trials and will be used to treat the Covid-19 patients with mild to moderate symptoms. After the news announcement, the company’s stock was up by over 13%. Investors anticipate successful phase-3 trial will be one step forward to explore commercial aspects and launch the product in the market.

Synairgen Plc shares trade at GBX 164.90, down by 1.26% on 21 October at 8:15 am GMT+1 with a market cap of £336.2 million. The company has given a year-to-date (YTD) return of 8.15% to its shareholders.

Advance Energy Plc (LON: ADV)

The company is engaged in the exploration and production of oil and gas from its offshore projects. It also has a power plant in Indonesia that uses gas to generate power.

Currently, the company operates in the pre-production stage and has not earned revenue from its upstream oil and gas assets. At present, the company has oil assets in the Democratic Republic of Timor-Leste, where it is carrying out drilling and expects to have the first production soon from its Buffalo-10 project.

Advance Energy Plc shares trade at GBX 4.33, up by 4.22% on 21 October at 8:15 am GMT+1 with a market cap of £42.65 million. The company has given a year-to-date (YTD) return of 69.44% to its shareholders.

Arena Events Group Plc (LON: ARE)

The company operates in the event management segment offering event solutions and set up of complete live events for commercial, sporting, and other events. It has operations in the UK, Middle East, and the US.

The company’s board has agreed to a takeover bid by Theta Bidco Limited. Under the terms of the agreement, Bidco Ltd will pay 21p per share for entire shares and to be issued shares capital of Arena Events Plc. The acquisition represents a premium of 48.4% compared to the closing price on 19 October 2021 and values the company’s entire issued shares at £71.0 million. Following the announcement of the acquisition, the share price was up by over 40% on Wednesday.

Arena Events Group Plc shares trade at GBX 20.25, up by 0.75% on 21 October at 8:15 am GMT+1 with a market cap of £65.58 million. The company has given a year-to-date (YTD) return of 101.7% to its shareholders.

Comment


Disclaimer