Aggressive AIM Portfolio

This portfolio has been created by Independent Financial Publications, the publishers of the stockmarket newsletter cityconfidential. 

Its objective is to generate capital growth on a medium term view although we will be looking to manage this in an aggressive manner so that we will trade the portfolio in an active way. 

Share prices for companies on AIM tend to be volatile and whilst this can lead to some nervous periods for investors it also leads to potentially exciting trading opportunities. 

We are starting with a notional kitty of £49,658 on 1 June 2018 and have invested around £5,000 into each stock in the portfolio.  Income is not deemed to be of importance in itself, although high yielding stocks are attractive by nature. We will be reviewing the portfolio on a weekly basis and changes will be posted on this page. A short overview of each company can be found beneath the share price table.

Start date: 1 June 2018 with £50,000.

Belvoir Lettings plc operates the largest franchised network of high street residential lettings and estate agents with 300 offices nationwide across three distinct brands.

The Belvoir Group aims to extend its market share of the UK property sector through its multi-brand franchise business model and by building on its reputation for delivering a highly professional lettings and estate agency service throughout the customer property journey.

The Company was founded in 2004 and over the past 12 years has established a successful platform that has been profitable in every year of its existence and delivered strong returns to shareholders. Their prime strategy is to build from these solid foundations to become the pre-eminent UK institutional broker to growth companies and investment funds admitted to trading or listed on a UK market. They aim to achieve this through:

• Understanding the needs of their clients, enabling them to provide successful fund raisings and advice through an innovative and entrepreneurial approach;
• Delivering sustainable, diversified and growing income streams;
• Adding high quality individuals to the teams; and
• Managing costs and risks carefully.

Thereby delivering a high return on equity and shareholder value through earnings growth and attractive cash returns to shareholders.

Eddie Stobart is a leading logistics and supply chain organisation in the UK. The business was initially formed in 1970 by its eponymous founder Edward Stobart, and went on to become, and continues to be, one of the UK’s most well-known companies in the supply chain sector. It is recognised for its high levels of service and benefits from a significant base of long term relationships with blue chip customers.

From its headquarters in Warrington, operating some 2,200 vehicles, 3,800 trailers and 24 distribution centres throughout the UK and Europe, Eddie Stobart provides its services to a range of national and international customers. With many of these, Eddie Stobart has had a long standing relationship for more than ten years. One of Eddie Stobart’s key differentiators is its pay-as-you-go, scale enabled, shared-user network approach which maximises fleet and warehouse utilisation, allowing Eddie Stobart to provide its customers with cost effective supply chain solutions. This flexibility, together with IT-supported network planning, allows Eddie Stobart to reduce empty vehicle miles, thus improving utilisation levels to above 86%, compared with the industry average of 71%.

Since passing into its current ownership in April 2014, Eddie Stobart has focused its business on growing a balanced portfolio across the following core sectors: E-Commerce, Manufacturing, Industrial & Bulk, Retail and Consumer.

Goals is a successful and established operator of  small sided football (“SSF”) clubs across the UK and was established in 2000. Goals now operates 46 FA affiliated clubs across the United Kingdom, three clubs in the USA (Los Angeles) and employs over 700 people.
Their focus is Small Sided Football is the most popular and fastest growing area of adult football in the UK. With over 1.5m adults playing every week and with 30,000 teams playing in organised and competitive small sided leagues, this format of football has increasingly become an integral part of the football family.

The Company has been a key pioneer of the SSF league and casual game in the UK enabling it to form strong partnerships with key industry participants including The FA. This format of the game is now fully recognised and supported by The FA and all Goals’ centres in England are FA accredited.

Northern Bear’s strategy is to grow organically by taking opportunities to expand into new business areas and regions as they arise, along with bolt-on acquisitions that will complement our existing businesses.

The Northern Bear group has been built by acquiring self-contained, specialist businesses with experienced management teams who have always maintained a strong blue chip customer base. Northern Bear plc has continued to perform well through the difficult trading conditions of recent years and is well positioned to exploit future opportunities as they arise.

Through the development of its North Yorkshire polyhalite project, Sirius Minerals will become a world leading producer of polyhalite, a unique multi-nutrient fertilizer containing potassium, sulphur, magnesium and calcium.

The £2.4 billion project is constructing Woodsmith Mine – south of Whitby, North Yorkshire – to extract polyhalite, and a tunnel system to transport it to a materials handling facility and harbour at Teesside. The polyhalite deposit is the world’s largest and highest grade. At full production the Project will create over 1,000 direct jobs and many more indirectly. It has the potential to generate over £2 billion of annual exports for the UK.

Sirius Minerals has gone to extraordinary lengths to ensure the Project is sensitive to its environment. Surface buildings at Woodsmith Mine will be limited, sunk underground and screened by existing topography, woodland and new planting. The Company will invest a minimum of £17M to promote the local area, £130M to safeguard and enhance the local landscape and over £12M to improve local transport infrastructure.

Surgical Innovations Group Plc specialises in the design and manufacture of creative solutions for use in minimally invasive surgery (MIS) and industrial markets. Their pioneering products are developed in close collaboration with international surgeons to ensure they meet patients’ needs and remain at the forefront of innovation.

Synectics plc is a leader in the design, integration, control and management of advanced surveillance technology and networked security systems.

With over 30 years of field-proven experience, Synectics has acquired intimate knowledge of the unique customer requirements and priorities in commercial, public and industrial environments where security is critical to their operations.

Meeting the needs of highly demanding clients for Oil & Gas, Gaming, Transport, Infrastructure, High Security & Public Space applications, Synectics engineers sector-specific, tailored security solutions that its customers rely upon to safeguard their people, facilities and assets – across the world.

Tandem Group plc designs, develops, distributes, and retails sports, leisure, and mobility equipment in the United Kingdom, Europe, and internationally. It operates through two segments, Sports, Leisure and Toys; and Bicycles and Mobility.

The company offers bicycles and accessories under the Boss, British Eagle, CBR, Claud Butler, Elswick, Exile, Explorer, Falcon, Pulse, Scorpion, Squish, Townsend, and Zombie brand names; fishing products under the Carpzone brand name; football training products under the Kickmaster brand name; and golf products under the Ben Sayers, Bioflow, and Pro Rider brand names.

It also provides garden and camping products under the Airwave and Windbar brand names; homewares and household appliances under the Jack Stonehouse brand name; mobility products under the Pro Rider brand name; outdoor play products under the Hedstrom and Airwave brand names; and snooker, pool, and table sports products under the Pot Black brand name.

In addition, the company offers wheeled toys under the Batman, Ben 10, Bored, Disney Pixar Cars, Disney Pixar Finding Dory, Disney Princess, Electrick, E-moto, Fireman Sam, Grow & Go, Marvels Avengers, My Little Pony, Paw Patrol, Peppa Pig, PJ Masks, Power Rangers, Powerpuff Girls, Shopkins, Star Wars, Stunted, Teletubbies, Thomas & Friends, Transformers, Trolls, Twista, and Wired brand names.

Tandem Group plc was incorporated in 1958 and is headquartered in Birmingham, the United Kingdom.

Vertu Motors plc was formed in late 2006 to acquire and consolidate UK motor retail businesses. It was founded as a new entrant into the UK motor retail sector and is listed on the AIM market. The Vertu Motors group operates a nationwide chain of franchised motor dealerships offering sale, servicing, parts and bodyshop facilities for new and used car and commercial vehicles.

The group operates many of its dealerships as Bristol Street Motors. Bristol Street Motors originated nearly 100 years ago as a single Ford dealership located on Bristol Street in central Birmingham. Since those early days the business has grown to become one of the largest automotive retail brands in the UK. The Group also operates a number of Premium franchise dealerships such as Volvo, Volkswagen, Land Rover, Audi, Mercedes-Benz and Jaguar and is the largest operator of Honda dealerships in the UK. In 2010 Vertu Motors expanded into Scotland, trading under the Macklin Motors brand. The group is now the 6th largest motor retailer in the United Kingdom and was awarded the Motor Trader Dealer Group of the Year award in 2008 and was Best Dealer Group in the 2012 Motability Supplier Awards.

cityconfidential is a stockmarket newsletter that aims to identify exciting investment opportunities from companies quoted on the UK stockmarket.  These may be companies that are in the FTSE 100 but are more likely to be small companies that most investors may have not heard of.  Quite often there will only be limited research available on these stocks (and often there is none at all).

The newsletter is published every fortnight (apart from around Christmas) so there are 25 issues per annum.  There are two companies featured in each issue in some depth whilst there are also snippets on two other companies too.  There are regular updates on previous recommendations as well.  If you would like to view a free sample of the newsletter please click here.

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REGULATION & WEALTH WARNING

cityconfidential is published by Independent Financial Publications, which is authorised and regulated by the Financial Conduct Authority. Independent Financial Publications has taken every step to ensure the accuracy of the information contained on this page but cannot accept any liability for any errors or any loss arising from the use of this page or its contents. Independent Financial Publications or individuals associated with it may have a position or engage in transactions in any of the securities mentioned. The price of investments and the income derived from them can fall as well as rise and investments in smaller companies have a higher risk factor. Past performance is not necessarily a guide to future performance. The investments on this page are not suitable for everyone. Before taking any action you should obtain expert advice from your adviser.