Three Aim stocks that should hit the bullseye
Professional investor Jonathan Moyes of Wealth Club picks three interesting stocks to buy from Aim, London’s junior stock exchange.
History may look back on 2020 as a transformational year for Aim, London’s junior stock exchange. Analysts were expecting a torrid year amid the pandemic and uncertainty over Brexit. Yet by the summer, Aim had fully recovered its initial losses and on 31 December it was far higher than where it began the year. Moreover, firms on Aim raised £5.76bn from investors last year, a 50% rise on 2019. Aim is also maturing. Today there are 23 companies valued at over £1bn; in 2015, there were just three.
Free from IHT
Note too that there are generous tax reliefs available on Aim. Certain stocks are inheritance-tax free if you hold them for two years and still hold them on your death. And you can now hold them in an Isa. This has given rise to the Aim IHT Isa: investors can transfer their capital from an Isa to an Aim Isa and shield their investment from inheritance tax. Investors can choose a ready-made Aim Isa. We like those run by Octopus Investments, Fundamental Asset Management and RC Brown. But for those happy to monitor their holdings, ensure they continue to qualify for IHT relief and keep meticulous records of when they bought them, these stocks are worth considering.
Established in 2001 and admitted to Aim in 2014, Gamma Communications (Aim: GAMA) provides communications services to the business market in the UK and mainland Europe. Services range from corporate phone systems to Wi-Fi and a mobile network. Approximately 70% of Gamma’s revenues are generated by a network of over 1,000 channel partners – third-party businesses that sell Gamma’s communication services. The partners give Gamma access to a large indirect sales force, enabling cost-efficient expansion. There should be plenty of growth to go for as old analogue systems are phased out and businesses require greater flexibility, a development highlighted by the pandemic. Gamma recently noted that its performance was “significantly ahead” of expectations.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Testing for telecoms
Calnex Solutions (Aim: CLX) provides test and measurement services to the global telecoms industry. These solutions allow its customers to validate the performance of telecom-network infrastructure. A key driver of future growth for the business will be the rollout of 5G mobile networks. 5G infrastructure needs to be more stable than 3G and 4G as it will support more services and the “internet of things” as well as applications such as driverless cars. Connectivity therefore needs to be extremely secure and with that comes a growing need for Calnex’s testing instruments and solutions. Customers include blue-chip telecom and internet infrastructure firms such as Vodafone, Google, and Cisco. The business has grown sales from £8.4m to £13.7m in just three years.
Next Fifteen Communications (Aim: NFC) is a global marketing and communications group. Around 50% of revenues come from selling its services to the thriving technology sector. Clients include Microsoft, Google, Facebook and Amazon. Next Fifteen is a diverse business offering services including digital content, PR, marketing software and market research. Results for the year to 31 January 2021 will exceed expectations. Sales in the five years to 31 January 2020 rose from £129.8m to £248.5m.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Vanguard cuts fees on six equity ETFs – can you find cheaper elsewhere?
The investment platform is well known for its low-cost funds, but it is still worth shopping around as some similar products come with lower fees
-
Fresh warning over high-risk mini-bond investments – what to watch out for
Investors are being enticed by promises of high, often guaranteed, returns but buying investments from unregulated firms offers fewer protections when something goes wrong. Here’s what to look out for with mini-bonds.
-
How to cash in on overlooked British bargains offering both income and growth
Opinion Sue Noffke, manager of the Schroder Income Growth Fund, selects three UK stocks where she’d put her money
-
Beazley: a compelling specialist insurer
The insurer Beazley is unusually profitable at present, and that looks set to continue. The stock is also a valuable portfolio diversifier, says Jamie Ward
-
The problem with renewables trusts
The value of assets owned by renewables trusts is far more volatile than investors expected
-
To hedge or not to hedge, that is the question
The mechanics of hedging are very logical, but deciding when to add a hedge is rarely a simple decision
-
8 of the best houses for sale with separate accommodation
The best houses for sale with separate accommodation – from a converted 17th-century threshing barn in Monmouthshire, to a Grade II-listed Queen Anne house in North Yorkshire with four apartments in the stable block
-
The great Reit fire sale – where to find the best value
The real estate investment trust (Reit) sector offers some once-in-a-lifetime opportunities
-
The secret behind Sweden’s success
Opinion Sweden's stock market is in rude health, says Max King. Why can't Britain follow suit?
-
'The boom years for football are over'
Opinion Football is saturated. The goals will keep coming, but the money won’t, says Matthew Lynn