- AIM-listed stocks offer a great investment opportunity for new investors with limited funds as they give an opportunity to make high returns.
- Tomco Energy Plc, ASOS Plc, ITM Power Plc, 88 Energy Limited are some of the AIM-listed stocks trading at a discount today.
Investment in AIM-listed stocks always draws young investors’ attention because a majority of the companies listed on the AIM index are at the start of their business cycle with a low market cap and offers an opportunity to make high returns. As of 31 August 2021, the FTSE AIM All-share index has returned 12.4% on a year-to-date (YTD) basis, while its three-year total return stands at 21.1%.
Although, the investment return given by the AIM index looks attractive and fascinate many investors. Still, the investors need to be careful as many listed stocks can show volatile price movement and swing in both directions and may require staying invested for a longer time horizon to gain maximum return.
Let us look at 4 AIM-listed stocks and explore the long-term investment prospect in them:
Tomco Energy Plc (LON: TOM)
The company focuses on the exploration and development of oil shale in the United States and the United Kingdom.
The company has announced that it has acquired 50% interest in Greenfield Energy LLC, which was earlier owned by the joint venture partner Valkor. The two companies have earlier formed a joint venture in mid-2020 to implement the acquisition. The company plans to construct 5,000 bopd facility at the earliest at the site. The company has an aggressive approach to site acquisition, and it also uses innovative technology to unlock hydrocarbon resources.
Shares of Tomco Energy Plc currently trades at GBX 0.55, down by 9.17% on 09 September 2021 at 9:05 am GMT+1 with a market cap of £8.71 million.
ASOS Plc (LON: ASC)
The company is engaged in the online retailing of clothes and fashionwear. The company provides services in over 200 markets through its mobile app and website.
The company’s business growth remained consistent even during the pandemic period. Also, the company operates its business in different markets and is not dependent on a single market for revenue. ASOS Plc reported total group revenue of £1,286 million, a rise of 27% during the four months ended 30 June 2021.
ASOS Plc currently trades at GBX 3,276, down by 2.21% on 09 September 2021 at 9:05 am GMT+1 with a market cap of £3,344 million.
ITM Power Plc (LON: ITM)
The company design and manufactures energy storage devices. Its sole focus is on the production of hydrogen energy for transport, renewable heat, and chemicals.
The company operates in the niche segment with few peer companies which directly compete with the ITM Power Plc. As of 30 April 2021, the company is working on £35.4 million worth of projects and has a contract backlog of £154 million. The company has significant manufacturing and operational capacity to address market demand, and it expects higher revenue realisation in the second half of the financial year, given manufacturing lead times.
ITM Power Plc currently trades at GBX 479.80, down by 2.68% on 09 September 2021 at 9:05 am GMT+1 with a market cap of £2,714 million.
88 Energy Limited (LON: 88E)
The company operates in the exploration of oil and gas products at different sites.
The company has zero debt and a total cash reserve of A$14.8 million. The company has successfully completed the drilling of Merlin-1 well at Project Peregrine in March 2021. Also, the company is planning to start drilling and logging of Merlin-2 appraisal well in the first quarter of 2022, for which it plans to raise A$20 million through placing.
88 Energy Limited currently trades at GBX 1.63, down by 3.85% on 09 September 2021 at 9:05 am GMT+1 with a market cap of £228.90 million.