The AIM Micro is a regular publication designed to cover, and inform, small companies on Aim. Although Aim itself does attract attention there are hundreds of companies that get little or no exposure. AIM Micro is designed to make a contribution - albeit a small one - to redressing that problem.
It is also trying to be the focus for the community involved with small Aim companies. It will do this by covering topics that are of interest to the companies and relevant to their position as a quoted company with all its opportunities and requirements.
There are more than 1,600 companies on Aim and 55% are worth less than £25m. The mainstream newspapers and magazines rarely cover any of them unless they are particularly well known brands or businesses. In fact, the best chance a small Aim company has of getting into the Financial Times or the financial pages of other daily newspapers is to run into problems with its business. Doing a good job is all too rarely enough to warrant coverage. The Investors Chronicle is also drawing back from covering the smallest quoted companies.
There are publications that cover small Aim companies but they tend to primarily be tip sheets or other publications with a bias towards recommending shares. There is a lack of coverage of Aim companies which doesn’t depend on whether or not they might be worth buying at the time of publication.
This publication will have profiles and articles aimed at providing information about what the companies do and what they plan to do rather than whether they are worth investing in. It is important that people have access to information about a company so that they can build up their knowledge base.
One of the ways that companies’ can help investors understand their business and what is happening to it is through their websites. That is why Aim’s insistence that companies’ should have relevant information available on their website is a good thing.
The intention is to cover companies with a market capitalisation of less than £20m. This still accounts for around half the companies on Aim - one-third of the companies are valued at less than £10m.
Clients of Charles Stanley have invested £709,000 in advanced materials technology developer Ilika at a 15% premium to the previous day’s closing price.
Construction software and building products group Eleco reported an ncreased loss in 2012.
African Eagle Resources says that it has been unable to secure financing to develop its Dutwa nickel laterite project in Tanzania.
Quindell Portfolio is out of the size range for Aim Micro but its problems are a good case study for all quoted companies and it is probably even more important for smaller companies.