AIM round-up: Ironveld, Blue Star Capital. Avacta Group

15th February 2022
Tony Cross
AIM Round-up
Avacta Group, Ironveld, Blue Star Capital, MySale

London’s AIM index found cause for cheer on Tuesday, with suggestions that Russia may be de-escalating its presence on its border with Ukraine a key driver of sentiment. However, this still appears to be far from a done deal, so cross-market volatility is likely to be a recurring theme. At 3.45pm the junior index sat just shy of 13 points higher at 1077.48.

Ironveld +27%
Blue Star Capital +21%
Avacta Group +19%
Mysale -51%
Loopup -34%

Ironveld [LON:IRON[ had a suitably buoyant day, adding just over 20%, but the market was far from efficient with a lack of available stock driving spread out to 10% in thin trade. There may be a news release imminent and insiders are as such reluctant to sell. One to watch.

Blue Star Capital [LON:BLU] also found favour, adding 21% on the day. Again there’s no news but the Russia/Ukraine situation appears to have been considered a potential drag here. The share price has almost fought its way back to pre-Christmas highs, but the geopolitical narrative could keep this volatile.

A notable mention for Avacta Group [LON:AVCT] which was 19% ahead at 3.45pm despite the prospect of free lateral flow tests – which it supplies to the UK government – coming to an end. Shares had however fallen almost 60% since the start of the year, we’re all going to have to live with COVID for a long time yet and the company has more than one string to its bow. Bargain hunters may now be swooping in.

A trading update ensured Mysale [LON:MYSL] found its way back onto our list yet again today, shedding 51% as we approach the close. The stock has now lost a total of two thirds of its value since the start of the year, with the Omicron variant leading to surplus stock before Christmas and management expressing a cautious outlook in today’s statement. A further update has been promised and clearly this has left investors wary.

Loopup [LON:LOOP] has also been afflicted by a trading statement this morning, with shares losing 34% by copy time. The note was broadly positive but did flag that longer lead times from booking to revenue were causing something of a drag on performance. Investors have latched onto this to drive the stock even lower.

Related
AIM round-up: Quantum Blockchain, United Oil & Gas, Mysale Group (9 Mar 2022)
Three Quick Facts: NatWest Group, SEGRO and Ironveld (18 Feb 2022)
AIM round-up: Ncondezi Energy, Mysale, Reabold Resources (16 Feb 2022)

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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