As the end of the year approaches it's time to pick where our rewards will be in 2007. My hot picks are already starting to perform but have much further to go IMO. SOLA, EPY and CCH.

I only invest in AIM shares because of the IHT advantages. So far since November 05 my 50K AIM portfolio has advanced to 65K Latest to come under the microscope is ROMAG (ROM) a specialist glass maker doing well on solar panels and bomb/bullet proof glass for corporate building projects .

My positions in AIM companies are almost all via spreadbets. It isn't always possible to get a sbet quote on companies smaller than 50m cap, which for me rules out one I quite like the look of - Silverdell (SID) - specialist in asbestos removal/disposal. Website www.silverdell.co.uk

(to pass 50m capitalisation, share price needs to exceed 155.5p)

The biggest 9 shareholders hold nearly 80% of the shares.. so competition to get hold of or get rid of the available 20% of stock probably means the price can get driven up and down a bit too easily for some peoples liking.

really??? ..... IG certainly allow cfd on anything with cap over 10m and can't believe same rule would not also apply to spread

cynic - IG and some other sbet firms will indeed quote for smaller firms - but only if daily volumes are sufficient to make the stock look easily tradable. On stocks that don't appear liquid enough, they will either decline to quote or will demand greater percentage upfront - and that can tie up a bigger chunk of someone's account than they might wish.

MY SELECTIONS FOR 2007, ARE; COIL, Look out in September when MEO.AX start to drill off Darwin 42% owned by coil. Also Elko energy 29% owned by coil coming to AIM soon. COIL at 3.75p now, the estimate on MEO's future value could take COIL's price to 55p. TMC is one of my favourites, I think that ultimately someone like BHP will buy them out, hopefully after some real value has been added. With 80 billion resource value in the ground, an offer of only 1 billion would be worth 36.20 per share. Another hopeful for 2007 is GGG, one of the most undervalued companies on AIM. I also have a list of oilers like CHP, EME, GOO, MRP, OEX and PELE. Finally I would plump for THR. After they have their dilution through a placement about March time, they will press on into production recovering 300,000 tonnes of tungsten over a 4 year period. They say that it will only take 7 weeks production to cover their overheads. Obviously, the proof is in the pudding, but I think a late run towards the end of 2007 is on the cards.

Fonty COH looks good for this year... you in?

CCH doing well and now I'm into DCD-would welcome comments. Soul T are you in this one?

My 2007 top stock pick is IIR (Independent International Investment Research plc)

[Is there a competition for longest stock name?]

Website: www.iirgroup.com
Share price: 20p
Capitalisation: 5.2 m
Year end: 28 Feb 2007

Overview

Independent International Investment Research (IIR) provides research on
global companies and currencies, for broker-dealers, investment banks, money managers and private clients.
The equity research business comprises wholly owned subsidiary Independent Financial Markets Research Ltd. (IFMR). The India-based (Chennai and Mumbai) equity research team now covers 300 companies, of primarily non-US with American Depositary Receipt programs.IFMR, established in 2002, has benefited from the 2003 Global ResearchAnalyst Settlement (GRAS) in the US, which required broker-dealers to provide independent research to retail clients.

Supplementing the equity research business, Pronet Analytics.com Limited
(Regulated and Authorised by the FSA in the UK and registered as an
Investment Advisor with the SEC in the US) offers investment advice and trading strategies to clients such as Standard Chartered and Citigroup. The ability to combine currency forecasts with the Group's fundamental equity research also offers an attractive product differentiator and has helped improve the performance of recommendations for US$-based investors in overseas stocks.


Insinger initiated coverage in September 2006 after the company finally turned a corner and became profitable with the new business model starting to bear fruit. The report provides a detailed background of the company & the new business model [far better than I could hope to write myself].

http://www.iirgroup.com/iir/docs/Insinger_research_note_Sep_2006.pdf

The forecasts were very conservative as you would expect at such an early stage of the companies turn around in fortunes, these forecasts have since been easily surpassed & a trading update was issued on the 20th Dec ;

http://www.iirgroup.com/iir/docs/Trading_update_11_December_2006_v1.7.pdf

Followed closely by an upgrade in forecast from Insinger showing a substantial increase of 261% in EPS forecasts ;

http://www.iirgroup.com/iir/docs/06-12-2-IIR.pdf

At the time this meant the company was trading on an 83% discount to research-oriented peers and as such has risen to today's price of 20p per share [was 13.5p when picked]. This is still very cheap and only puts IIR on a PE of 8 despite their exceptional growth - versus an industry average of 20 25.

Whilst the company does not have a history of earnings performance it is worth bearing in mind that the Insinger forecast only includes CONTRACTED business and does not take into account conversion of the strong existing pipeline or any new pipeline as the year progresses [see comments in trading statement + confirmed by CEO] Additionally any potential revenues from new product developments & other medium term growth drivers [see Insinger initial coverage & last finals] are excluded.

Furthermore the company is looking to break into new areas where independent research is beginning to take hold, in particular SE Asia & the UK. Market commentary is very positive for growth of the indies into these areas. A very useful source of industry specific information is;

http://integrresearch.blogdrive.com

To assist their major expansion plans they are currently strengthening the management team and looking to increase the research analyst heads in their Indian subsidiary from the current 60 to 200 staff during the .

As well as organic growth, earnings accretive acquisitions in the research space will be considered - Any acquisition would be paper based,

The current CFO for example is PT and cannot give any more time so a replacement is being sought, [any of you looking for an interesting role?] Details of which I attach as it gives an insight into where the company is heading in 2007;

http://jobs.efinancialcareers.co.uk/job-4000000000223293.htm

To conclude

+ Current PE is 8 versus industry average of 20 25.

+ Current EPS forecast is ultra conservative as based on contracted business alone, excluding the pipeline and likely additional business wins + growth into new areas.

+ Management & research team being strengthened to take advantage of the pipeline of deals.

+ Mr Smith CEO is planning a number of investor relations exercises [Insinger coverage was the start of this] early this year which is hoped will see the company more appropriately valued by the market.

+ Has very little debt, the company has been supported financially by Mr Smith & his trust over the last 2 years.

+ Significant taxable losses to utilise

+ Potentially a bonus of a multi million settlement from Google for Gmail trademark claim - talks are discussing after previous offer by Google was rejected.

- Liquidity is poor but will hopefully be addressed in some way as part of the investor relations drive and paper being issued for earnings accretive acquisitions.

i bought Tadpole at 1p via spread bet...safest way of trading by far

Mediwatch (MDW)
results to show 1st profit and approvals for PSA watch first 10 min test for prostrate cancer in the WORLD.
results end of jan
Private research note out in feb paid for by company.

not too late to climb onboard
:-)

GVC

Bombed out gambling co due to perceptions re american situation and worry about the recent decision by 15 of the 16 premiers of the German federal states to postpone signing the new treaty on gambling.

However:-

Way undervalued
P/E of under 3; yield of 33%
Break up price roughly same if not more than m/cap
Makes money for fun (roughly 12mill on 33 mill turnover)

Value will out when the mugs wake up, or it will be snapped up.

Nice appointment today.

I pick GVC too

News from germany too

Tipp24 AG (TIM GY), an Internet gaming company, added 17 cents, or 1.4 percent, to 12.55 euros. The German state of Schleswig-Holstein plans legislation that may allow sporting bets and other forms of gambling, Euro am Sonntag reported.

Fluxx AG (FXXN GY), an online gambling company, gained 19 cents, or 6.4 percent, to 3.17 euros.

http://www.bloomberg.com/apps/news?pid=20601100&sid=auV3GLtPSjwg&refer=germany

One to look at ( DCD Media ) long tem

take a look at Brainspark BSP...volcano waiting to explode ...big trades will signal it this week ;-)

GVC doing nicely now

GNG performing well-don't ignore the next possible multi bagger. Set up to be the chinese microsoft also CCH and EIIB are in hot areas and making good announcements. I expect them to really perform up to and after their results in March DYOR.

LOL, just posted GNG on Driver's Tips.

I'm going to let the phrase "the chinese microsoft" sink in and see if I agree. Might up my holding at some point. Do we know exactly when the results are likely to be published?

Results out on Leadcom (LEAD) today.

No brainer imo for 07 and 08.