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Advocate1973 – 01/05/24 - “There is nothing you can do to stop him, it just makes me laugh now…”
@advocate1973 – It is comical & here are just two examples of ‘Brandolini’s Law’ from yesterday.
#Fiction - c2645sg – 01/05/24 - Quotes:
“I hope AML007 reads this bit......
So much for the new debt paying for all the old debt like he prattled on about.”
“AML007 said the new debt would repay all the old debt.
Remember this EVERY TIME he tells you something in the future. NOT to be trusted 100%...
The company spent £80mn on financing expenses, related to changes in the US dollar and fees from paying back some of its debt early.”
- - - - - - - - - -
#Fact – @c2645sg repeatedly said the £1bn+ refinancing ‘fees’ required Q1 2024 cash:
- 18/01/24 – “Refinancing COSTS MONEY.”
- 14/03/24 – “AML have also said cash will be used to fund this bond refinancing, how much?”
- 06/04/24 – “…and all that extra cash they need for refinancing fees.”
- - - - - - - - - -
#Fact – I simply pointed out these statements were untrue/mis-leading:
15/03/24 - AML_007 – Quote:
@c2645sg – You asked this before & I’ve answered it before, did you even read the RNS?
RNS – Quote - “The proceeds from the offering of the Notes… will be used… to pay expenses and fees in connection with the transactions”
I also told you AML still had £106m left over from the money they raised last year to pay off debt.
https://www.astonmartin.com/-/media/corporate/documents/2023-results/aston-martin-lagonda-fy-2023-results.pdf
“Cash as at 31 December 2023 includes the remaining £106m of proceeds from August’s share placing, following the redemption of a portion of the outstanding second lien notes in November”
- - - - - - - - - -
RNS - 01/05/24: “Adjusted net financing costs of £53m, increased primarily due to the year-on-year impact of US dollar debt revaluations, and accelerated amortisation of fees related to prior loan notes as a result of the successful refinancing. The £27m net adjusting finance charge was largely due to movements in fair value of outstanding warrants, and the redemption premiums associated with the refinancing of the senior secured notes.”
- - - - - - - - - -
So, there was no “extra cash” required in 2024 for the refinancing fees from the £1bn+ raised in 2023 and all of the 2024 financing costs associated with the “prior loan notes”, and redemption costs of those prior notes, came out of the £106m left from the cash raised in Aug.23 to do exactly that. #NothingToSeeHere
https://www.lse.co.uk/rns/AML/result-of-equity-issue-c8j3x74zrxlapmm.html
But why let the truth get in the way of a good story. < Roll Eyes >
Have a good day, cheers, Paul. :)
PS
@advocate1973 - With all the rash of postings recently, you may have missed this:
https://www.lse.co.uk/ShareChat.html?ShareTicker=AML&share=Aston-Martin-Lagonda&threa
If the share jumped massively, he would moan...
If the co was bought out he would moan...
There is nothing you can do to stop him, it just makes me laugh now..he is like a cat typing furiously!
This just about sums you up.
miserable Share
/ˈmɪzrəbəl/
/ˈmɪzrəbəl/
IPA guide
Miserable goes way beyond sad — it means absolutely wretched. Someone who's miserable feels absolutely awful.
If you were caught in the pouring rain, missed your own birthday party, and then got food poisoning, you wouldn't just feel bad. You'd be miserable — which means exceptionally unhappy. Victor Hugo's novel, Les Miserables ("The Miserable Ones"), is the story of people who live a wretched life filled with death and unhappiness.
...and here is my working.
AML burned through almost £200m in Q1.
Q2 will be similar, so let's call the total a nice round £400m.
Can you see them earning £401m in H2 to say they are cash-flow positive over the full year?
Nope, neither can the market.
The debt interest is £120m per annum, alone. capex on new models is £344m for the year. Mental.
Share prices drop for good reason, and the reason is AML are running out of cash at an alarming rate, AGAIN!
They need to raise £200m in the next 3 months and the market knows this.
Who wants to buy the shares between now and the next cash raise?
Shortermers who sell as fast as they buy.
It's going to be another brutal year, AML said themselves new models "by the end of the year"
That's another 8 months of carnage.
Shorts closing.
And MM have more stock than they want, so they raise the price midday to lure some more idiots in, thinking a bounce is on.
Q2 will be sore too, more of the same, wish a cash raise too. Double whammy.
I give them zero percent chance of FCF positive this year. Zero!
Dire news! A drop in Sp at the bell and then a 10pence + increase in 2 hours!
Questions worth considering;
Who is buying?
…and why?