Taking AIM for 2021 – portfolio overview

Taking AIM for 2021 – portfolio overview

Scottish Mortgage Investment Fund – 18%
Ok I’ll admit, this isn’t an AIM stock. But 2020 has been a sensational year for this fund, rising 75.16% for me. Historically the fund has always performed well, but large holdings in Tesla and Amazon have really helped the fund rocket upwards this year. The fund provides me with international exposure to a variety of firms, as well as a much less volatile holding compared to the rest of my portfolio, which comprises of AIM stocks. Hopefully, the momentum will continue.

Avacta Group PLC – 17%
I must confess I’m very excited for Avacta’s future next year. I bought in twice last year, once at 69p and once at 140p. This was definitely a long play for me so I never took any profits when the SP peaked in May. As a result I’m still waiting patiently for the SP to explode. I believe this will be realised in 2021, potentially even early on. My investment thesis remains the same: successful trials of the rapid SARS-CoV-2 antigen test could boost the SP in the short term with the cancer therapeutic technology being the long play.

Bushveld Minerals Ltd – 11%
Currently my only mining company, although one of the success stories of my portfolio. Vanadium remains an attractive prospect as a metal, particularly for its use in batteries. The company is in an enviable position to capitalise on this demand owning 2/4 of the largest primary vanadium processing facilities. With high entry costs into the market demand is likely to exceed supply, further adding to the rationale.

Probably a little overweight in my portfolio but the share price increase just doesn’t show any signs of slowing down. It was the biggest winner percentage wise in my portfolio last year, and I took profits on the 23rd of December. I’m not sure how long the share price can keep rising in the short term although the advanced gasification technology still appeals. It’s a definite hold for now, although I may sell some stock early next year to diversify into another green energy company.

4D Pharma PLC – 9%
Probably the company I’m most excited about along with Avacta. Incredibly tempting to increase my holding, despite being such a recent acquisition for me. SP-wise, the prospect of a NASDAQ listing early next year is very promising. There are just so many reasons to invest here: 1000+ patents, Live Biotherapeutic technology, and numerous products already in phase 1 testing.

MelodyVR Group PLC – 8%
I bought into MelodyVR at the end of July, however the share price remained frozen for most of the year due to the acquisition of Napster. Despite the success of this acquisition, the share price has yet to rise though. This is surprising and could prove to be a good buying opportunity. The growth opportunities have only increased. Napster’s library comprised of over 80 million songs, which can now be used by MelodyVR. This will allow the company to provide a traditional music streaming service as well as the VR platform, hopefully expanding the user base and increasing revenues through a subscription model.

SIMEC Atlantis Energy Ltd – 8%
My other green energy company. I confidently believe that green energy could  be the fastest growing sector over the next decade or two (in fact I ought to write an article soon to back up this thesis). Simec Atlantis are well positioned to capitalise on this growth. They are primarily focused on tidal power, with their flagship project MeyGen completing its 1A phase, and now in the process of further expansion. However, the conversion of pre-existing power plants to green ones – through the use of waste derived fuel pellets – is perhaps even more exciting than the tidal power. Currently the company is in the process of converting Uskmouth Power Station in Wales. If this proves to be successful, the business could grow exponentially, converting many existing/used power stations into green ones, which will become a necessity in the years to come in my opinion.

Tiziana Life Sciences PLC – 6%
Another Pharma company with a fair number of products in the pipeline. The nasal inhalation technology should prove to be interesting as more trials are rolled out. Not a COVID company but the inhalation tech that should allow drugs to be inhaled directly into the lungs could boost the SP considerably, should the results (which are due soon) be positive. Also will be getting free shares in Accustem, as a result of the demerger in Q1 2021. The recent fall in the share price should reflect these free shares.

Deepverge PLC – 6%
I recently acquired Deepverge after doing some research into their Labskin technology. Labskin is the ‘only commercially available lab-grown, full thickness human skin model with AI assisted testing platform’. Not just a unique product, 12/13 years of data has been collected on it. Should the product prove to be commercially successful, Deepverge will have a monopoly on such a product. This seems likely to me given the applications in the cosmetics industry: companies can test the effects of all their products on Labskin. Given the increasing demand for ethically tested products (rather than testing on animals), it’s difficult to see how Labskin wouldn’t become hugely successful within the cosmetics industry alone. Furthermore, Deepverge also has several other products such as water monitoring technologies.

Cash GBP – 7%
Holding cash certainly isn’t an objective of mine – the guaranteed loss of money to inflation is risk enough for me! I’m currently looking for additional investment opportunities as soon as possible. Ideally it would be good to diversify into a new sector – although I am equally tempted to find a new green-tech company to invest in.

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