The mixed reaction means it's not an approach we're likely to try again any time soon - at least not in the sacrosanct tips section. But I still think that in the case of Sirius what we did makes sense. That's partly because I don't think it is our job to tell private investors what to do, but present them with the information they need to make better decisions themselves. And with two of our experts so vehemently disagreeing, a strong case could be made either way. It seemed like a debate that should be had in public.
What's more, as Mark Robinson argues in 'The Sirius binary bet', buying Sirius's shares essentially amounts to a binary bet on whether it receives planning permission for the mine it's trying to build. If successful, the project's vast potential means brave investors could do very well. But sited in close proximity to a national park, it's a decision that could go either way. Recent developments haven't been entirely positive, which is why our sell case has, for the time being, won the day.
Even so, that coin toss is something that many investors appear happy to stake large amounts of money on. Katie Morley's been speaking to some of the UK's biggest retail stockbrokers this week to find out what Aim shares people have been putting into their Isas in the weeks since the restrictions were lifted. And Sirius is right up there, along with several other high-risk resource plays.
I have to admit I find this somewhat surprising. Sure, Aim is dominated by resource companies, but it's also home to many well-established, dividend-paying businesses. These were the kind of companies I and other commentators expected to see flooding into Isas, not high-risk miners and drillers which, like Sirius, are often beholden to factors well outside of their control. It's the kind of speculative buying that was a prime argument for excluding Aim shares from Isas in the first place - the tax-efficient wrapper is supposed to be a savings vehicle after all, not a betting product.
And don't forget, just as an Isa means your gains will be protected from capital gains tax, so you won't be able to offset the losses you'll inevitably make on Aim shares against gains elsewhere. In that respect, while the recent rule change may have created a more level playing field for Aim investors, it has also added another layer of risk to an already risky market.
