Stockopedia for AIM #4

Stockopedia for AIM

Today’s post is our fourth in a series on Stockopedia for AIM – we’re working towards using the screening tool to put together an AIM IHT portfolio.

The Story So Far

In the previous three articles:

  1. We signed up for a  free 2-week trial of Stockopedia, toured the site and examined the daily Stock Report for a company.
  2. We looked at the Guru Screens, and in particular the “Screen of Screens”, which returned only 14 AIM stocks that weren’t micro-caps.
    • We need 50 stocks for our portfolio and only 5 of the 14 were suitable.
  3. We built a “safe” AIM screen, which returned 28 plausible stocks.
  4. We analysed the AIM stocks on our Family Firms page, which produced around a dozen plausible candidates.
  5. We analysed the AIM top 50, which added maybe another half dozen.
  6. We looked at an Economic Moats screen from Ben Hobson, which gave us a few more stocks.
  7. We looked at a Neglected Stocks screen (again from Ben) but that only gave us three stocks.
  8. On the occasion of his move over to ShareScope, we looked at Richard Beddard’s investing approach, and used a ready made screen within Stockopedia to find another 50 stocks.
Going forward

The agenda going forward is:

  1. Work our way through Stocks 51 to 100 on the AIM-100 list.
  2. Create a “Gold” list of dead-cert companies that appear in “professional” IHT portfolios.
  3. Create a similar “Silver” list of AIM companies tipped in articles, on Twitter and that show up in the amateur portfolios that I have access to.
  4. Export these screens and portfolios, and combine them in Excel / Google Sheets /  Access.
Phil Oakley

I obviously have a mental block about doing the consolidation part of this work, because I’m going to cover a few more screens first.

  • No doubt prompted by his new colleague’s article on his investment philosophy, long-time ShareScope analyst Phil Oakley has also documented his approach.

The article covers his philosophy as much as his screening process, but there were a few numbers in there:

  • ROCE more than 15%
  • Profit margin more than 10%
  • Low debt including pension fund deficits (he doesn’t give a figure)
  • Operating cash flow more than operating profits
  • PE below 20

Phil also likes to know:

  • How the company makes money
  • What the company does that others can’t
  • That is will hold up in a recession – he avoids cyclicals
  • That there is potential to grow profits – the company should be selling into attractive markets

So let’s have a go at building a screen to match Phil’s approach.

  • Unlike Richard Beddard, Phil doesn’t have a ready made screen within Stockopedia

Here’s my attempt at the screen rules:

  • you’ll have to cut me some slack, as I’m still finding my way around Stockopedia

Phil Oakley AIM screen

Unfortunately the screen only returns four stocks, though admittedly they look like good ones:

Phil Oakley AIM screen results

You’ll notice that I’ve learned since last time how to edit the tables to show the data that I like – a very useful feature.

Gold list

The “Gold list” is a list of 72 stocks that have been included in “professional” AIM IHT products.

  • These are the “secret” AIM IHT stocks that you have to pay asset managers 2% up front and 2% pa for access to.
See also:  Risk Tolerance Questionnaire - Twenty Questions

More than twenty of these come from newsletters and research  materials that I have seen with my own eyes.

  • A few are from investment groups of which I am a member.
  • And around 40 are from public comments to previous articles on this website and direct emails to me from readers.

Of course, with such a long list assembled over several years, not all the stocks have good scores at the moment:

Gold list 1

Gold list 2

Gold list 3

Gold list 4

Gold list 5

Gold list 6

AIM stocks 51 to 100

I won’t be going into much detail in this section, but looking through stocks 51 to 100 on the AIM chart (courtesy of the Investors Chronicle articles in May this year), I believe the following should be considered:

  1. 4D Pharma (DDDD)
  2. Patisserie Holdings (CAKE)
  3. Staffline recruitment (STAF)
  4. Majestic Wine (WINE)
  5. Redcentric (RCN)
  6. Iomart (IOM)
  7. Telford Homes (TEF)
  8. Renew Holdings (RNWH)
  9. Manx Telecom (MANX)
  10. Alliance Pharma (APH)
  11. Vernalis (VER)
  12. Verseon (VSN)
  13. M&C Saatchi (SAA)
  14. Vertu (VTU)
  15. SafeStyle (SFE)
  16. Gooch and Housego (GHH)
  17. Epwin (EPWN)
  18. Idox (IDOX)
  19. Xeros Technology (XSG)
  20. Mortgage Advice Bureau (MAB1)
  21. Personal Group (PGH)
  22. Sinclair Pharma (SPH)
  23. Next Fifteen Comms (NFC)
  24. Avanti Comms (AVN)
  25. Park {PKG)
  26. Gattaca (GATC)
  27. Time Out (TMO)
  28. Andrew Sykes (ASY)
  29. Mattoli Woods (MTW)
  30. RhythmOne (RTHM)
  31. Joules (JOUL)
  32. Caretech (CTH)
  33. XL Media (XLM)
  34. Midwich (MIDW)
  35. Quixant (QXT)
  36. Blue Prism (PRSM)
  37. YouGov (YOU)
  38. Camellia (CAM)
  39. Keywords Studios (KWS)

I included a few that were in the 2016 top 100 as well as those from the bottom half of the 2017 top 100.

So these were added to the AIM 100 screen that I ran last time:

AIM 100 1

AIM 100 2

AIM 100 3

AIM 100 4

AIM 100 5

AIM 100 6

Conclusions

We now have nine screens, some with dozens of stocks, others with only a handful.

  • I’m going to leave it there, and assemble the Silver list of tips and published investor holdings at a later date.

The next article will definitely focus on consolidating these nine lists into a master list, and choosing the “best” 50 stocks for our portfolio.

Until next time.

Mike Rawson

Mike is the owner of 7 Circles, and a private investor living in London. He has been managing his own money for 35 years, with some success.

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Stockopedia for AIM #4

by Mike Rawson time to read: 3 min
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