The hidden gems on Aim, London's junior market

Aim, London’s junior market, is risky – but you can find solid stocks at low prices. Scott Longley reports.

London's Aim market had a grim end to the year.The FTSE Aim All-Share index peaked at just under 1,110 in the summer. Then, like most other global markets, itbegan a precipitous slide in early October, and closed2018 down 23%, at 850.Of course, the nature of Aim and its constituents (often young, high-growth, high-risk companies attracted by light-touch regulations) makes it prone to high-profile failures in risky sectors such as tech and resource exploration.

Yet the nastiest Aim surprises in 2018 did not come from these sectors. Bargain-booze retailer Conviviality went belly-up in spring last year after being hit with a "surprise" £30m tax bill.In October the Patisserie Valerie fraud began to come to light (see page 14). And near the end of the year, fashion group ASOS one of the UK's few genuine homegrown online leaders surprised the market with a profit warning.

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