This is quite a U-turn for us – a full hand-brake, opposite-lock wheels-spinning 180-degree about face. Ever since the shares were launched at £19.00 each, we have been fearful that Aston Martin (ticker AML) has been trying to do too much, with too few resources. Now that the shares are almost in penny territory we say BUY! Fill your boots – or at least fill that curvaceous trunk at the rear of your gorgeous Aston Martin.
Our previous articles, Great New Aston Martin Models in Geneva – but What About The Shares?, No U-Turn on Aston Martin (AML) – Yet!, and Aston Martin Still Has a Mountain to Climb* may have given the impression that we felt AML was on the downhill road to bankruptcy.
So what has changed?
Since our last report, Canadian billionaire Lawrence Stroll has bought a quarter of the company and installed himself as Chairman. More importantly, he has assessed the company as a businessman rather than as a car enthusiast. So he can see that everything hangs on getting the new DBX model (a long overdue SUV) into series production. So the peripheral distractions – such as re-introducing the Lagonda brand as as an EV – need to be abandoned to focus on what counts.
Do we think Aston Martin has a long-term future as an independent car maker? In a word, Nope, Not A Chance! Okay, so that was four words – what do you want, a financial analyst that can count??
We still see AML being bought by Daimler Benz or Geely (see our earlier article about their ambition). The difference now is that Aston Martin will be bought from the shareholders, not the receiver.
Aston have announced that they intend to restart production in the new factory at St Athan. There may not be a huge launch event for the DBX, but you can be sure there will be plenty of column inches to cover it.
The night is always darkest before the dawn. Right now, things look a bit iffy for AML, with closed factories, a high-interest loan to service and all the challenges of building a new car in a new factory – and then launching it into a market new to the company. However, if you wait to see how the company performs launching and building the DBX model this summer, the opportunity will be gone. They closed last night at 59p, having been as low as 49p this week. By Chrismas, the shares will be back at £5.00 each, as the financial world recognises the turn-around of this magnificent company.
Buy now. These shares are due to motor upwards! (Sorry, I so nearly managed to resist motoring puns throughout this article.) Then go and order a DBX.
IMPORTANT: Please see our disclaimer. We are only commentators. Readers must review any potential share purchases or sales ideas with their special advisors before going ahead.