Where to find good value on AIM?
With much of the market looking quite fully valued it’s increasingly tricky to uncover decent value opportunities. Many high quality (and highly priced) small caps continue to deliver excellent results, seeing their shares climb ever higher and pushing up valuations. That’s fine if they continue to deliver the desired results but for the few that disappoint the punishment is severe, with share prices subsequently falling dramatically. Results from a recruitment company we follow suggest its modest valuation is worthy of greater attention, more on that in our Blog and latest commentary.
This week brought a profit warning from previously high flying Solid State (AIM:SOLI) due to delays in a key contract; the shares subsequently tumbled more than 35%. Our Blog offers more on this disappointing update and revised broker estimates. Having disappointed with a profit warning earlier in the year, Shoe Zone (AIM:SHOE), the value footwear retailer, reassured with its pre-close trading update. On many fronts the shares look decent value, much like the product offering. Senior management offloading a combined 2.495m shares at 190p a few days later was less reassuring although they still hold 50% of the equity so…