How safe are AIM 100 companies?

sabretoothtigger

Ive never heard of aim 100. Yahoo shows an index for aim but the idea seems a bit silly because aim is for starter companies or its supposed to be. Some of them are big, most are tiny, the variation is too great surely


A few aim companies were delisted last week while still a working business, they had not declared proper accounts on time.
In theory aim is like 100x more risky then a ftse stock. But BP halved, you know about the banks and so on

Its increasingly true that risk in smaller stocks or the weaker currencies are less risky then the apparently safe stuff like big uk companies or government debt
So the odds are better then ever I'd say

Not only that, the actual price is largely dictated by two or three 'market makers' whose job it is to set up the two prices.

Aim company prices do seem to move different. Some of these companies have little or sometimes no trading done in them, nobody cares what they are worth minute by minute so its made up I think.
Then you find theres a surge of buyers, some craze like potash or indian infrastructure. Everybody wants some including the 5 pence aim company or vice versa, it gets dumped.

Theres alot of 'echo' in smaller aim company prices I think. The computer interpolates from the few real trades done.


The price is less real and more of the estimate of worth is guessing, you have to either gamble or have some real insight to worth of that company.
So if you see an aim chart realise maybe 80% of it was drawn by a computer because only 20% of the time people were buying or selling

Often the company has no business, its just got a license to explore and I avoid companies with no business personally

http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?security_classification_id=103317&country_id=1&trade_analysis=1&csi=113101&target_csi=&id=113101&sub_action=&orderby_field=security_name&price_type=closing_&intraday_prices=1&ac=&username=&action=constituents&selected_menu_link=/dlmedia/investing&order_by=column7&view_data=standard&sequence=descending

Biggles

sabretoothtigger wrote: »

Ive never heard of aim 100

That's the FTSE AIM 100 (http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/aim/aim-Index.html?aim=AIM1), with market caps from around £150m upwards.

But I agree as regards mining/exploration comapnies, the rewards can be great but the risks are enormous.