The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
https://www.autocar.co.uk/car-news/industry/coronavirus-car-industry
The initial onslaught appears to have subsided for now. Be interesting to see what news comes out over the remainder of the day! Only 9 days till June the 1st. It's possible that we will get an update from sage/pm today about the easing of lock-down, around schools and non essential shops. That will almost certainly have a bearing on the wider economy. After the doom and gloom of this morning, the PM will be under growing pressure to get things moving again. It feels like we are on the edge of normality, but we are just struggling to take that half a step needed. We are having second thoughts...at some point someone needs to decide, and if they decide to move forwards then I expect the market to price it in. That's my gamble I suppose! We know the brand is worth a lot of money, and even with their struggles before the pandemic, it's certainly depressed the share price considerably. Can they survive long enough to recover? Will that recovery come at the beginning of June?
The supply chain is critical to the survival of Aston Martin. They will no doubt do a phased return over many months. The demand will still be present to an extent. Orders already placed will.need to be planned in and manufactured. It's certainly a highly complex issue.
Yup, that 400k order at 37.2 has been annoying me all day too. Desperately waiting for an update on Gaydon. I think that will be the turning point, if they re open it makes a statement, but we wont find out for a few more weeks yet I think, unless they change their minds!
Well, there is something going on today, I can smell it. I'm looking at the orders and the trades I have seen so far and I can just tell there is something a foot! Im going to go out on a limb and predict 39- 40p by close of play tomorrow, feel free to tear me apart if i'm wrong! It could just as easily be 35p but something just isn't adding up, mm's being sneaky?
The funny thing is, I have probably touched the parts going into your new Aston, I work in manufacturing. I would never profess to know what's going to happen though. I just know the industry rather well and feel hopeful. I certainly won't mind losing the money I have invested. I want 60p, that's my target, otherwise it's not worth my effort. I have a 32p average!
We certainly will....I think today is about fears in the wider market due to a record number of global cases. Sentiment turns on a hat though, each day we move close to normality across Europe and China, the recovery is coming IMO.