AML - Stock Market Listing
Discussion
AdamV12V said:
Thankyou4calling said:
I'm not saying your summary is incorrect, but just to point out that its not 5yrs, as the axis shows only around 3yrs of data.This 6 month chart is interesting (well to me it is
), because it shows two periods of strong upward share price movement.Number 1 price rise followed major share purchases on behalf of two AML directors, Lawrence Stroll and Michael de Picciotto.
After those purchases were declared/announced, possibly investors concluded, 'insiders must know it is a good time to buy'. - Oh well.
Number 2 price rise - wonder what was behind that. Sometimes investors decide the price has fallen so much, it must now be cheap.
- Oh well.
I think the moral here is; study the business itself, not follow 'the herd' (other share buyers).
Numbers 1 and 2 are called dead cat bounces. Short upward movements, during a longer period of share price decline.
Short-term traders might have profited, but that is guessing and gambling, not serious investing.
What worries me, as the ship gets closer to the reef, and I never bought any shares so it is none of my business I suppose, is why no shareholders challenge what appears to be abuse of the company's assets, not only how it is supposed to benefit AML to pay £21m per annum to a failing F1 team, but also how that team and AMR GP Limited are able to use the Aston Martin brand if it is in fact a wholly Stroll-owned enterprise. Surely to allow the 'brand' to be siphoned out of the core company, principally Aston Martin, but also Lagonda, as well as 'AMR', if that is what is happening, into an independent company owned by one of the directors, would be an abuse of the company's assets?
cardigankid said:
... not only how it is supposed to benefit AML to pay 21m per annum to a failing F1 team, but also how that team and AMR GP Limited are able to use the Aston Martin brand if it is in fact a wholly Stroll-owned enterprise. ...
It was a very clever move by LS, which we only realised, when so many new sponsors began to be announced. I did not know until recently, how much the payments are.
My guess is that it must have been incorporated in the original rescue proposal, which was accepted and agreed by the AML board at the time, so AML have to keep paying. Presumably the agreement must have an end/renewal date, so the board will have to decide at some stage. Now let me think, who will be the chairman of the board, watching that decision being made by the directors ?
I don't think anything was stated publicly by AML, but seem to remember there was speculation at the time, that Geeley were also then interested in acquiring AML. Perhaps the anticipated glamour of F1 was an influence. -
Edited by Jon39 on Thursday 26th May 15:54
F1 Budget Cap is $140m. I assume that includes all salaries and bonuses. Hard to quantify whether AML gets £21m brand value from association with AMR.
There was talk of AMR doing their own engines but I don't see how that's possible within the budget cap.
Also mooted was an Audi tie-up, which would possibly necessitate a rebrand of AMR, or an Audi move for AML. Both complicated by Merc's existing F1 engine deal with AMR and their agreement for supply or engines and technology, and the voting rights they have, with AML due to their share issue.
I had assumed that Merc might buy the whole of AML. Their Mythos brand may negate that, or it may align with it depending how they align their brands.
Audi meanwhile, tried, but failed, to buy McLaren. VAG are bringing at least two of their brands to F1, either as a constructor or engine provider.
Interesting times.
There was talk of AMR doing their own engines but I don't see how that's possible within the budget cap.
Also mooted was an Audi tie-up, which would possibly necessitate a rebrand of AMR, or an Audi move for AML. Both complicated by Merc's existing F1 engine deal with AMR and their agreement for supply or engines and technology, and the voting rights they have, with AML due to their share issue.
I had assumed that Merc might buy the whole of AML. Their Mythos brand may negate that, or it may align with it depending how they align their brands.
Audi meanwhile, tried, but failed, to buy McLaren. VAG are bringing at least two of their brands to F1, either as a constructor or engine provider.
Interesting times.
Petrus1983 said:
Up almost 8% today. A better day than many.
Over 10% at the end. There was a resolution agreed at the AGM for AML to buy back 11,645,951 shares. It did not include any explaination as to how that would be paid for.Today's rise may have been part of that, though cleary the volume of 550k-ish only accounts for a fraction of that total and the rise may not be related at all.
So we could be looking at 20 days of 10% rises!
(Tongue very firmly in cheek)ferrisbueller said:
F1 Budget Cap is $140m. I assume that includes all salaries and bonuses.
The budget cap includes expenditure that is related to car performance only. The costs of marketing, driver salaries, and staff salary are excluded from the budget cap. This exclusion ensured the team drivers and staff weren't affected by the budget capOtherwise if you had Hamilton and Leclerc on the same team that would be half the budget gone! Plus they want Teams to spend as much on Marketing as possible.
https://thesportsgrail.com/explained-f1-budget-cos...
GPH said:
ferrisbueller said:
F1 Budget Cap is $140m. I assume that includes all salaries and bonuses.
The budget cap includes expenditure that is related to car performance only. The costs of marketing, driver salaries, and staff salary are excluded from the budget cap. This exclusion ensured the team drivers and staff weren't affected by the budget capOtherwise if you had Hamilton and Leclerc on the same team that would be half the budget gone! Plus they want Teams to spend as much on Marketing as possible.
https://thesportsgrail.com/explained-f1-budget-cos...
Don't fully understand that F1 budget explanation.
'The budget cap represents the cost of building and running the cars with the salaries of drivers and the team principal and technical director excluded'
So its the salaries of the top talent that is excluded.
'Teams will have a maximum budget of $30m to split between two drivers. However, teams can spend more than $30m on drivers but it’s been agreed that any excess will be lopped off the team’s operational budget cap'
So with Hamilton and Verstappen on $40m, $10m comes out of operations? I doubt it, must be a loophole somewhere. I was also of the understanding that engine development isn't included, so as to entice car companies in and spend as much as they wish on new power tech.
'The budget cap represents the cost of building and running the cars with the salaries of drivers and the team principal and technical director excluded'
So its the salaries of the top talent that is excluded.
'Teams will have a maximum budget of $30m to split between two drivers. However, teams can spend more than $30m on drivers but it’s been agreed that any excess will be lopped off the team’s operational budget cap'
So with Hamilton and Verstappen on $40m, $10m comes out of operations? I doubt it, must be a loophole somewhere. I was also of the understanding that engine development isn't included, so as to entice car companies in and spend as much as they wish on new power tech.
Other articles I have read just say Driver salaries excluded for now so maybe that has not be enforced yet.
There are more changes I believe for next year including lowering the cap again.
Also excluded is power units, travel, marketing, hospitality and as you say, the top 3 salaries otherwise the Team Principals would never have agreed to it
There are more changes I believe for next year including lowering the cap again.
Also excluded is power units, travel, marketing, hospitality and as you say, the top 3 salaries otherwise the Team Principals would never have agreed to it
ferrisbueller said:
Petrus1983 said:
Up almost 8% today. A better day than many.
Over 10% at the end. There was a resolution agreed at the AGM for AML to buy back 11,645,951 shares. It did not include any explaination as to how that would be paid for.Today's rise may have been part of that, though cleary the volume of 550k-ish only accounts for a fraction of that total and the rise may not be related at all.
So we could be looking at 20 days of 10% rises!
(Tongue very firmly in cheek)The buy-back number you state, is exactly 10% of the number of shares now in issue.
It might simply be a renewal of a previous shareholder authority.
Resolution 18, To authorise the Directors to allot shares; must have been a renewal of authority.
Of course these type of authorities are usually kept in place, so that they can be acted upon at any time if appropriate, without needing a delay for a shareholder vote.
If a buy back is going to be implemented, I think it would be usual for there to be an announcement first.
Certainly when underway, the dealing (TRANSACTION IN OWN SHARES) has to be notified promptly to the Stock Exchange.
BAT are now doing a £2 billion buy-back. Purchases being spread over a long time period. Masses of individual purchases are being made each day. Every transactions carried out yesterday, has been declared to the LSE today.
A 550k transactions turnover is fairly average for AML.
Often never know reasons for rise/fall, but part of it today (considering recent declines) might possibly be short positions being closed.
As you suggest, AML have more pressing uses for their cash at present, so I think it would be odd, if they actually implemented a buy-back at all.
GPH said:
Other articles I have read just say Driver salaries excluded for now so maybe that has not be enforced yet.
There are more changes I believe for next year including lowering the cap again.
Also excluded is power units, travel, marketing, hospitality and as you say, the top 3 salaries otherwise the Team Principals would never have agreed to it
There are more changes I believe for next year including lowering the cap again.
Also excluded is power units, travel, marketing, hospitality and as you say, the top 3 salaries otherwise the Team Principals would never have agreed to it
F1 on an economy drive. You must be having a laugh.
Anyway I think we would probably notice, if they really are serious.
NO BUDGET CAP
BUDGET CAP
Edited by Jon39 on Thursday 26th May 19:41
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