Aston Martin: On a Wing and a Prayer 👼

by 10 Jul, 2020

Aston Martin: On a Wing and a Prayer 

The markets have not been kind to Aston Martin Lagonda. The stock’s been left in a crumpled heap with short-sellers reaching one in five of its Invstr community following. It’s down more than half in just thirty days, a shocker, but the bulls want one more puff.

Think Bentley Bentayga, Rolls Royce Cullinan, and Lamborghini Urus. These are ultra-luxurious hot wheels, raised off the ground, comfortable, four-by-four people-carriers, and much easier purchases to rationalize for high-earning families used to the school run.

Aston Martin wants into this market and has just rolled its first DBX off the production line. It costs £189,000 before extras, so a few sales of this will go a long way toward shoring up the firm’s fatal finances. Aston Martin warned investors last week that cash was needed from somewhere. The big question; will it start?

This company’s been bankrupt eight times already, and if sales break down again, that’s all nine lives. There’s no need to swing at this, rational investors agree, but out-of-favor stocks can hit the bid big as mega out-of-the-money call options not on miracles, but just on rumors of miracles. In other words, when a stock that has been performing abysmally spikes up, it really, really spikes up!                                                                                     

As an idiosyncratic sweetener to the pitch, you can expect a cameo in this year’s James Bond film, ‘Too Late to Die, given so much is riding on the car’s success. The Bond franchise has always been a great promotional platform, although, the Aston Martin 750iL was famously delayed because James Bond wrote off too many in filming!

Can 007 save the day? Will Aston Martin even make it to the premiere? You decide!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

 

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