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Highlights
- The AIM index, which comprises low market cap companies, has clearly outperformed the blue-chip FTSE100 index in the current bull run.
- Valirx Plc, Global Petroleum Ltd, Synairgen Plc are some of the AIM stocks to keep an eye on.
In the recent bull run of the stock market, the AIM index, which comprises of low market cap companies, has clearly outperformed the blue-chip FTSE100 index. FTSE AIM All-share index has delivered a return of over 12% till 31 August 2021 when the FTSE100 return is close to just 7% to date, which indicates the AIM index has outperformed and delivered high returns to shareholders.
Investing in the AIM listed stocks can be rewarding if investors do in-depth research and select stocks with strong fundamentals and good management and have a long-term investment vision.
Here we look at three AIM-listed stocks and their investment prospects.
Valirx Plc (LON:VAL)
The company is into the development of oncology treatment to improve patient lives. It is into research and drug development, from pre-clinical studies to ready medicines.
The company is currently in the growth stage with significant investment in drug research and clinical trial to treat cancer. The total research and development cost stands at £166,500, while it reported a loss of £785,434 during the six months to 30 June 2021.
The company is carrying out a clinical trial of medicine to treat cancer. If the company successfully develops the medicine, it might prove to be a game-changer and benefit its revenue and profitability.
Valirx Plc closed at GBX 29.50 on 17 September 2021 with a market cap of £19.19 million. The stock has given a 22.60% return in the last one year.
Synairgen Plc (LON: SNG)
The biotechnology company carries out the research and development of respiratory drugs to treat asthma and COPD. The company has also done clinical trials to build therapies for Coronavirus patients.
During the year ended 31 December 2020, the company reported a loss of £17.7 million with a significant expenditure of £15.5 million going for the research and development of the Covid-19 drug. The company reported positive phase-2 trial results for inhaled interferon beta-1a (SNG001) to treat COVID-19 patients. It has also invested in the supply chain for the distribution of SNG001 after the required approval is obtained.
Synairgen Plc closed at GBX 171.00 on 17 September 2021 with a market cap of £344.29 million. The stock has given a negative return of 7.02% in the last one year.
Global Petroleum Ltd (LON:GBP)
The company engages in oil and gas exploration through its primary exploration site located in Namibia and the Mediterranean. The company’s stock has a dual listing on the Australian and London Stock Exchange.
The company has raised £1 million by placing of ordinary shares at a placing price of 0.5p per share. The company intends to use the funds for licence commitment, to carry out new strategic options and general working capital use. The company has a cash balance of USD 1,247,787 with zero debt.
Global Petroleum Ltd closed at GBX 0.59 on 17 September 2021 with a market cap of £4.79 million. The stock has given a negative return of 25.77% in the last one year.
