Bagging a Bargain From the Biggest AIM Losershttp://www.fool.com/investing/international/2012/07/24/bagging-a-bargain-from-the-biggest-aim-losers.aspx David Holding
July 24, 2012
LONDON -- I've been having a closer look at some of the biggest losers from the AIM 100 since the turn of the year, with the aim (sorry!) of finding an overly discounted bargain or two. The AIM 100 keeps things a little less crazy than all AIM stocks.
At the time of writing, the top fallers for 2012 at just past the halfway stage look like this:
It isn't difficult to spot a common theme here. So perhaps there's a salutary lesson for most investors when it comes to investing in junior mining and oil exploration stocks? These are notoriously dangerous and difficult for the nonexperts to value with much accuracy. They're also the areas many private investors are attracted to due to the potential for explosions in valuation, of course, so it's no surprise to find so many on the flipside.
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The idea of looking at the biggest fallers, for value hunters anyway, is to have a quick initial look at these companies and decide which warrant much more detailed investigation.
Personally, few exhibit sufficient value credentials for me to consider -- and some that do have the wrong kind of ownership profiles or operate exclusively in areas of the world I'd rather not invest in. Some are just too plain difficult to put a rudimentary valuation on for a nonexpert in these sectors like me -- and if in doubt, I always rule them out. Though perhaps there are mining or E&P experts out there who can shed some further light on the possibilities here?
Still, there are a surprising number that look worthy of further investigation to me. Specifically, I intend to add the following stocks to my list to review more closely: