AML - Stock Market Listing

[Jon39]

Bobajobbob said:

Who knows, but we are almost in penny stock territory.

Add in the debt and the Company is still valued at nearly £2 billion.
Compare that value with possibly reporting negative earnings per share for 2019.

[pschlute]

Bobajobbob said:

. With so many shorts in the market now at some point there will be a significant squeeze/bounce.

Who knows but we are almost in penny stock territory.

I am jesting with you.....

but you do sound like you are talking your book

[JohnG1]

pschlute said:

PotentiallyaHorse said:

Hedge funds take record short positions against Aston Martin https://on.ft.com/2H0iHzN

One thing that always surprises me is the willingness of existing holders of a company's shares or bonds to lend them to a hedge fund so that they can be sold short.

The smaller the company, the the more relevant this is.

That's an agent/principal problem. Who owns the assets versus who has those assets under their control? Most fund trustees don't quite grasp the problem, they just want cheap custody...

[V8V Pete]

hornbaek said:

With the yield on an all time high today and short sellers moving in, the debt market is pretty much closed for AML. I believe we are looking at a deeply discounted rights issue to keep AML afloat over the next 6 months.

Time for a PistonHeads AM Forum crowd funding takeover bid? I'd put a tenner into that.

[Dewi 2]

V8V Pete said:

Time for a PistonHeads AM Forum crowd funding takeover bid? I'd put a tenner into that.

Majority ownership brings management obligations. That is the tricky part.

Have you got your own AML share certificate yet, Pete?

[V8V Pete]

Dewi 2 said:

V8V Pete said:

Time for a PistonHeads AM Forum crowd funding takeover bid? I'd put a tenner into that.

Majority ownership brings management obligations. That is the tricky part.

Have you got your own AML share certificate yet, Pete?

I knew they’d be a catch.

No shares, no share certificate. Mine has cost me enough in consumables in the last couple of months that I can’t afford to throw money at something that doesn’t exist. Are wheels consumables?

[Dick Dastardly]

At this price, how much would it cost to own 1% of Aston Martin?

[p1stonhead]

Dick Dastardly said:

At this price, how much would it cost to own 1% of Aston Martin?

About £10m.

[Dick Dastardly]

Well that puts that little fantasy to rest then.

[Jon39]

Dick Dastardly said:

At this price, how much would it cost to own 1% of Aston Martin?

Exactly 1% would be 2280028.9 multiplied by the share price. Plus the purchase fees.

You cannot have 0.9 of a share, so make that 2,280,029 shares.

Edited by Jon39 on Friday 16th August 08:58

[Bobajobbob]

pschlute said:

I am jesting with you.....

but you do sound like you are talking your book

Haha I was actually looking to buy in early this morning but the exchange is down.

[anonymous-user]

It back up, the market, not the price lol.

[KevinBird]

Worth a read

https://www.theguardian.com/business/2019/aug/16/a...

[Jon39]

KevinBird said:

Worth a read

https://www.theguardian.com/business/2019/aug/16/a...

Thanks for posting the link Kevin,
(even Includes a few good high res. AML photos to borrow, for private use only of course).

The points below are not new, but probably summarise what many of us have been talking about for a long time, some of which is mentioned in the newspaper article.

1. The IPO was never going to benefit a company such as AML, but we think we know where the push for that came from.
Continually being scrutinised is not helpful for some types of business.
If the IPO had not happened, AML would now be quietly progressing their business plan.
They did not raise new money in the IPO, so the only financial beneficiaries would seem to be the existing majority owners (was it about £1 billion) and the outside firms involved in the float (was it about £130 million).

2. (a) Very high capital spending associated with new model development was known at the outset.
(b) The cyclical nature of car manufacturing was also known, so a sales slowdown would arrive at some point.
Perhaps (a) ignored (b) which could risk running out of cash.

3. Spending more than earning will continue for some time, until the income from DBX can reduce, or eliminate the outflow of money.
AML have mentioned new cost controls (no overtime, or recruiting) but perhaps the development costs for so many new models at once is too ambitious. The debt interest payments are fixed commitments and the dates of debt repayment (hopefully refinancing) are getting ever closer. DBX should be the financial saviour, so maybe spend on that and delay some other future models, until cash is flowing in from DBX. The Lagonda electric projects come to mind, because is anyone now making profitable electric cars?

Edited by Jon39 on Saturday 17th August 14:01

[bignoise]

Hi

I received a letter offering me £10 per share now im not an expert in share dealing etc and you never get anything for nothing so is there a catch given I would double my money?

Also if I accepted would be allowed to re invest in some more shares?


Sorry if this seems a silly question

[alscar]

Presumably you would only double your money if you had paid £5 per share but if you did then yes !
If on the other hand you invested at the IPO at £ 19 then the conundrum is do you get out at double the existing price but still take a 50% hit or wait and see ?If oversubscribed btw then you wont necessarily be selling all your shares anyway.

[Buster73]

bignoise said:

Hi

I received a letter offering me £10 per share now im not an expert in share dealing etc and you never get anything for nothing so is there a catch given I would double my money?

Also if I accepted would be allowed to re invest in some more shares?


Sorry if this seems a silly question

A letter from whom ?

Ask yourself why they’d give you £10 when they can buy them for less than £5 on the market ?

[Minglar]

Happy to be corrected from some of the better informed posters on here, but isn’t this the offer from Investindustrial Advisors (ie one of the investors who sold some of their holding on the IPO) that Jon39 mentioned previously? I thought they were considering buying back some shares at the pre-agreed (option) price of 1000p per share. As Alscar said earlier, it’s probably already over subscribed, so the chances of selling at that price are probably limited. I think it is due to go through some time in September. It does seem strange for them to exercise the option given the current stock price though. As I said, if I’m talking nonsense, I’m happy to be corrected by those who know.

Best Regards

Minglar

[Jon39]

Buster73 said:

bignoise said:

Hi
I received a letter offering me £10 per share now im not an expert in share dealing etc and you never get anything for nothing so is there a catch given I would double my money?

Also if I accepted would be allowed to re invest in some more shares?

Sorry if this seems a silly question

A letter from whom ?

Ask yourself why they’d give you £10 when they can buy them for less than £5 on the market ?

This has been discussed earlier on this topic, but life is to be lived, so don't worry that you missed it. -


The £10 offer is by a subsidiary of Investindustrial, the private equity firm which is one of the main shareholders in AML.

The whole offer still puzzles me.
Investindustrial sold part of their holding at the time of the AML stock market flotation last October at £19 which raised about £450 million for them. Since then, their remaining holding has a value loss of about £1 billion, ouch. I presume they announced their £10 offer to hopefully try to keep the market price up. Since their intended offer announcement, the share price moved down from £10 to about £5. I might be wrong, but I can only assume that Stock Exchange rules make them go ahead with their offer, even though they are paying £10 for £5. No one commented on that question, when raised earlier.

As mentioned above, the applicants will almost certainly be 'scaled back', so don't expect to be able to sell all or any of your shares.
It is an unusual situation.



Edit - you are spot on Minglar. We were typing at the same time, sorry.

Edited by Jon39 on Saturday 17th August 15:43

[Minglar]

Jon39 said:

This has been discussed earlier on this topic, but life is to be lived, so don't worry that you missed it. -


The £10 offer is by a subsidiary of Investindustrial, the private equity firm which is one of the main shareholders in AML.

The whole offer still puzzles me.
Investindustrial sold part of their holding at the time of the AML stock market flotation last October at £19 which raised about £450 million for them. Since then, their remaining holding has a value loss of about £1 billion, ouch. I presume they announced their £10 offer to hopefully try to keep the market price up. Since their intended offer announcement, the share price moved down from £10 to about £5. I might be wrong, but I can only assume that Stock Exchange rules make them go ahead with their offer, even though they are paying £10 for £5. No one commented on that question, when raised earlier.

As mentioned above, the applicants will almost certainly be 'scaled back', so don't expect to be able to sell all or any of your shares.
It is an unusual situation.



Edit - you are spot on Minglar. We were typing at the same time, sorry.

Edited by Jon39 on Saturday 17th August 15:43

Thanks Jon. Yes I think we were :-) No need to apologise.

Best Regards

Minglar