Nimmo explains how to make money on AIM

STANDARD LIFE'S HARRY NIMMO

With its mixed track record, investing in AIM has recently been considered the territory of a madman, but can investors find value stocks despite recent poor performance?

If indices are anything to go by the Alternative Investment market (AIM) is a complete dead loss. The FTSE AIM index has fallen by around 32% in the period from launch on 1 January 1996 to July 2010. Even the ‘blue chip’ FTSE 100 
index has managed a 44% gain over that period, while the RBS Hoare Govett Smaller Companies Index (HG) is up a more impressive 120%. Ostensibly the HG and the AIM indices cover similar smaller companies: they are both exposed to growth markets; they both include companies in early stages of their development; and both have traditionally been fertile grounds ...