Three AIM share tips for the new ISA limit
Infrastructure spend overall has been sluggish, despite politicians recognising the part this could play in any economic recovery. It has therefore been difficult for companies such as Breedon Aggregates, which provides materials to the construction and building sector. Despite this, margins have been improving, helped by lower costs, stable pricing and acquisitions.
The company has been positioning itself to benefit from any pick up in the economy and demand for its products. A number of acquisitions have been made which should help expand its geographical presence in the UK and management expects these to make a significant and improving contribution. This is a smaller AIM listed company and is geared to a recovery in infrastructure spend. It is for investors prepared to take a longer term view.
The mobile telecommunications group continues to see increasing demand for its services believing it is on track to meet its 50% revenue growth target in 2014. Its global ambitions have been helped by a number of acquisitions in the last financial year and investors will be pleased to hear recent news of a former Visa executive becoming joint CEO.
Investors will acknowledge that Monitise already boasts leading blue chip partners and will be encouraged by the news that the group has become the technology partner behind Yaap Shopping, the Spanish mobile commerce service launched by the alliance of CaixaBank, Santander and Telefónica. The new contract wins in Europe and the US demonstrate that the company is seeing multiple opportunities in all geographies.
The company continues to attract high calibre partners and customers, helping to firmly integrate its proposition as the preferred interface between financial institutions and their customers globally. Results continue to demonstrate that the group is heading in the right direction and so we recommend Monitise for a higher risk, early stage investment opportunity.
This small oil and gas exploration firm operates in a potentially unstable region, so it represents a very high risk investment. Amerisur Resources has made significant progress in terms of exploration in recent years, turning exploration projects into productive assets. Production only began at its Platanillo field in southern Colombia in 2012 and has now reached to 7,000 barrels of oil equivalent per day.
Amerisur Resources’ fields are all set for more seismic and drilling activity and the company remains positive on their prospects. With production increasing at a rapid rate, the company is expected to build on last year’s performance with net margins predicted in the region of 45%. This is helped by the fact that the company has no debts on its books. With a forward price to earnings ratio and six times the valuation compares favourably against its peer group.