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Highlights
- FTSE AIM index is one of the top-performing indices in the UK stock market. It has delivered higher returns to investors compared to blue-chip index FTSE 100.
- Velocys has announced an agreement with two separate airline companies: Southwest Airlines and International Consolidated Airlines Group.
FTSE AIM index is one of the top-performing indices in the UK stock market. It has delivered higher returns to investors compared to blue-chip index FTSE 100 or mid-cap focused FTSE 250 index.
Investors prefer to select AIM stocks as part of their portfolio as most of these companies are in the early stage of their business cycle and has the potential to grow exponentially if the underlying business model of the company outperforms. Also, investing in the early growth years of the company can potentially give a high return in the long term.
© 2021 Kalkine Media
Let us look at three AIM-listed stocks and explore the investment opportunity in them:
Velocys Plc (LON: VLS)
The company operates in the alternative energy segment using its in-house build Fischer-Tropsch technology to generate clean, low carbon fuel for aviation and road transport.
The company has announced an agreement with two separate airline companies: Southwest Airlines and International Consolidated Airlines Group (IAG Group), to supply sustainable aviation fuels from its planned biorefinery project, Bayou Fuels, located in Mississippi, USA.
The company has signed 15 years agreement with Southwest Airlines to supply 575 million gallons of net-zero aviation fuel, while it will supply 73 million gallons of aviation fuel to IAG Group for the 10-year period. The biorefinery project is scheduled to start commercial fuel production in 2026.
Velocys Plc closed at GBX 8.40, up by 33.33% on 10 November 2021 with a market cap of £67.14million.
ASOS Plc (LON: ASC)
The company operates as an online fashion retailer in the UK and other markets. It sells over 85,000 products through its e-commerce website.
The company’s business is currently in different phases of growth in each market it operates. As a result, the company forecast a long term profit margin of at least 8%. Also, it expects £7 billion in sales, equating to 15-20% CAGR over the next three to four years. The company plans to achieve its sales target by promoting its own brands of clothes which could add close to £1 billion in revenue, while cost savings efforts through operational excellence might cut down costs by £50m to £100m.
ASOS Plc closed at GBX 2,822.00, up by 9.51% on 10 November 2021 with a market cap of £2,575 million.
Emmerson Plc (LON: EML)
The company does the exploration and development of potash minerals, and its flagship project is located in Northern Morocco.
The company announced that it had secured an investment of USD 46.75 million from the group of investors for the development of its Khemisset Potash Project. Investment of USD 46.75 million has been structured into two tranches which includes an immediate equity investment of USD 6.75 million at 6p per share and subscription to USD 40 million convertible loan notes. One of the primary strategic investors is Singapore-based Global Sustainable Minerals Pte Ltd.
Emmerson Plc closed at GBX 6.30, up by 11.50% on 10 November 2021 with a market cap of £47.08 million.
