Perspective required3 Oct 2024 10:57
My first post on this, I feel some views posted are missing a wider perspective.
1. Mr. Stroll
Maybe not the most endearing character but he has been very successful with brand businesses.
A man of obvious ego, up to his elbows in Aston AML and F1. He has staked his reputation and will absolutely hate to fail.
His background though is not in engineering production. Hallmark now needs to prove his worth.
2. The product.
The tie in with Merc was clever, access to tech at vastly lower development costs.
He has the brand positioning spot on, Aston are supposed to be great performance cars but with exclusive luxury.
A few years back they were dynamically flawed, b grade to real car enthusiasts. That is no longer the case. Its taken too long but they are now right.
3. The business.
The latest statement sights supply train and China been the main reasons for target shortfall.
China is now improving. Hallmark should be able to improve product delivery and manage supplier risk more closely.
Timing for Aston hasn't been great, many auto manufacturers have had a poor year.
4. The question now
Can they get production and sales moving without further excuses? Is the worst over?
I think the product is finally right, there are enough wealthy customers, the desire to succeed is everything to Stroll. Hallmarks reputation is also on the line.
If they reach break even the share price will leap.
Are enough cars (and do not dismiss earnings on spare parts etc also) getting out of the door to get them through to 2025 when it should all be about selling?
Cash burn should be less. Production is rolling even if not to the forecast levels, its going to be up on H1.
The interest in Adrian Newey and AM F1 will help sales.
As might the soon to be released F1 movie.
A new Bond movie will come along later.
The brand and product have a lot going for it.
Are they really going to fail when so close?