Hobson: An AIM Listing Isn't Always A Red Flag to Investors

THE WEEK: Renold has relegated itself to the junior market AIM while DMGT has finally produced a decent set of results, says Morningstar columnist Rodney Hobson 

Rodney Hobson 31 May, 2019 | 11:13AM

Russian dolls

Stepping down from the main board on the London Stock Exchange to AIM tends to put off investors. At the very least, investment and unit trusts with a mandate to buy shares only in quoted companies will be forced to sell any holdings they may have; all too often it is a warning that all is not well financially.

Should Investors Avoid AIM?

Such companies can, however, be an interesting play for those investors who don’t mind taking a bit of risk and are patient enough to hold on in the hope of a spectacular turnaround in due course. For a company, an AIM quotation is substantially cheaper than a full listing and the financial respite can offer the opportunity for bouncing back.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Daily Mail and General Trust PLC Class A637.00 GBX-0.16
Renold PLC6.30 GBX-26.96

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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