AIM ideas for ISA customers

The move to allow direct investment through an ISA comes ahead of the removal of stamp duty on AIM listed stocks next April.

The Tax Incentivised Savings Association has announced that AIM stocks will become qualifying investments into ISAs from 5 August.

AIM ideas for ISA customers

AIM ideas for ISA customers

Equity transactions in AIM-quoted companies already make up nearly a third of the share dealing activity of execution-only investors and Gavin Oldham, chief executive of The Share Centre, said he anticipates an upsurge of demand after the rules come into force.

“While investors’ decisions must be on their individual circumstances and risk appetites, the move allows investors to take advantage of a much wider range of stocks offering both growth prospects and value,” he said.

Until 5 August investors still have limited access to AIM listed stocks either through a self invested personal pension or through the small pool of AIM stocks that are dual listed on foreign stock exchanges.

The move to allow direct investment through an ISA comes ahead of the removal of stamp duty on AIM listed stocks next April.

Below is a selection of AIM listed stocks to consider by Helal Miah, investment research analyst at The Share Centre.


Incadea is a software company whose products aim to improve the performance and efficiency for car dealerships and since coming to the market in May 2012, the share price has made steady headway. The company has a presence in around 80 countries and 2,000 dealerships, with established relationships with BMW, Nissan, Mercedes and VW.

It is currently concentrating on developing into emerging markets, especially the BRIC markets (Brazil, Russia, India, China), where opportunities are far greater than parts of Europe. The April results showed Incadea is making excellent progress with increased demand from clients and this is expected to be reflected in an improving revenue stream.

As expected, a first dividend for shareholders was announced. This is a higher risk smaller company idea for the medium to longer term, which is establishing itself across the globe in a niche market. According to forecasts the group is trading on a P/E of around 12.6 times this year’s earnings.

Amerisur Resources

As this is a small oil and gas exploration firm operating in a potentially unstable region, it represents a very high risk investment. In terms of exploration, the company has made significant progress in recent years, turning exploration projects into productive assets. The current total production level is 8,500 barrels of oil per day (bopd). The target is to double the 2012 production rate by the end of 2013. With production increasing at a rapid rate, the company is expecting to build on last year’s performance with net margins expected in the region of 45% higher, helped by the fact that the company has no debt on its books.


The luxury goods sector as a whole has come under some pressure recently, partly as a result of concerns over Chinese and global growth. However, Mulberry’s weakness has been more to do with its heavy focus on the UK and European markets where the economic conditions have been much weaker.

However, we believe that for the high-risk investor this represents an entry point for long-term investment into a stock that has the potential to see significant demand growth. Also, the potential will be increased if it manages to shift its sales focus to emerging countries such as China where the evolving demographics favor luxury goods. Other luxury brands are doing extremely well from Asian demand and we believe that Mulberry can prosper too.


There has been renewed interest in Monitise from investors due to news that it had completed a new deal with Telefonica, following recent deals with Lloyds and Visa Card Europe. Plus, hedge fund manager Leon Cooperman, saying he believes the stock is a “five bagger”. The US market is huge for Monitise and over 200 institutions have signed agreements. However the jewel in the crown is the deal that was arranged with Visa Inc, this gives Monitise access to Visa’s 1.7 billion cardholders.

Monitise reported interim results that show the company continues to confidently head in the right direction. Also, the company’s global ambitions have been helped by the acquisition of their peer, Clairmail, in the US for $173m in shares, and once amalgamated the group should be set to break even by late 2014. We continue to recommend investors buy Monitise for a high-risk, early-stage investment opportunity. The company continues to attract high caliber partners and customers, helping to firmly integrate its proposition as the preferred interface between financial institutions and their customers globally.

Hutchison China Meditech

There are three divisions to Hutchinson China Meditech – the Healthcare division, Drug R&D, and the Consumer Products Division. One of Chi-Med’s products has made it to the Chinese essential list of medicines, of which there are only around 370.

The business is focused primarily on China. The benefit of this is that as the Chinese population becomes more affluent there is a significant upturn in those signing up for medical insurance and also by the government on national healthcare. To give an indication of the potential market, the average spent on healthcare in the US is just above $7,000 per person per year while the average in China is about $150. There has been positive news flow about joint ventures and drug trials. However, this is a high-risk buy idea for investors seeking exposure to China.

AIM Ideas for ISA Customers & Equity Release

What Is Equity Release?

Equity release is the use of financial arrangements that provide the owner of a house, or other property, with funds derived from the value of the property while enabling them to continue using it.

How Does Equity Release Work?

Equity release is aimed at homeowners aged 55 and over. It allows you to take some of the value of your home as cash.

Investments on Equity Release

You can use money received from equity release to spend on anything that you wish (providing that it is legal). There are no legal restrictions in place on the use of the loan. However, different lenders and financial advisors may restrict some of the use of funds.

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
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