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How are they in a strong position? They aren’t, the money raised won’t even see them through the next year and unless they are turning a profit by then which I highly doubt then more money will be raised, I highly doubt they will ever reach the valuation of the IPO and if so it definitely won’t be in the near future, can I ask why you seem to think otherwise?
50p would be great, i've literally just seen you over on the AML board, hoping for a better ride here than over there, are you currently in AML?
yeah you will get an insight next week in the update and i think from there it could start to go up providing it is positive, as for aston being worth 200 million i currently make it worth 0, you cannot say it is worth 200m when it has 900m worth of debt, why does nobody consider that
i get what you're saying and yes i understand it is vital for Aston to invest in their brands, i keep repeating myself, i think things will get worse before they get better and i think more cash will be needed, that is my concern because this is probably the worst time for a business to be struggling and in and almost 900m worth of debt which people seem to be ignoring, the longer this drags on then the more of a problem that debt will become... i will say no more and see what next week brings
morning, yeah its become a bit much over there, i admit i got that one wrong and what annoys me is that SHI was on my watchlist long before AML but i expected some sort of bounce after the RI, still i have learnt from that, this is one of those companies i can leave to do its thing, i don't need to keep checking the share price, fundamentally this is a sound business even if the next few months are a little choppy
that would be good, i need something to take my mind of the s***t that is AML, on paper this looks a far better investment and with everything opening up again i may have timed my entry right, fingers crossed
depends on you time horizon, i would look further than 12 months down the line so i would be asking the questions as to what happens in 12 months when the money is spent and there is still £900m of debt on the books and no profit has been generated, i am keen to have a look at the Q1 trading update to get a feel as to how things are going, there are reasons to be positive here but i could be well underwater before things start to happen, also no other company i am invested in have had to raise cash on the back of covid because they are not loss making and as heavily indebted as AML
i may have worded that incorrectly but most of the money will be spent within the next 12 months and again the CEO has said that, the analyst was merely pointing out that going forward most of the money raised has already been spoken for to get the company through the next 12 months, but what happens when that time is up and the money is gone? that is my concern if that money is mostly spent then what? there is still massive debt with interest to be paid for example, no doubt Covid is going to impact the business which they don't seem to have accounted for in the RI
go to the company website and look at the video presentation for the full year 2019 results go to the Q&A at the end, Giulio Pescatore from HSBC asks:
"I just want to make 100% sure about when you actually get the money, the cash inflow from the placement and the rights issue. Because as things stand today and given the colour you have given us on the CAPEX and working capital and given the currency situation with Coronavirus, I mean, it still looks quite tight, si i just want to make sure when - how confident you are that you wont need another injection and when do you get your cash from the placement?
Mark Wilson: Well we're getting cash in two tranches. So the placement happens immediately post the general meeting on 16th march, a handful of days, And then the transaction, we would expect to close in the first days of april, as you saw, and the money to follow commensurately again within a couple of days and so the answer is that's what we need so that's why we've configured it that way
evening all, A little late to the party i know but i have taken a few shares here today after watching it creep up from 20p, expecting a good return here in the coming weeks and months...still very cheap
i am sure that has been said many times over the years, but for that to happen Aston will surely need to be turning a profit which it currently does not do and i can not see that happening within the next 12 months despite the board expecting otherwise they surely cannot know just how much of an impact the business will suffer, Stroll has invested a lot here we know but any future debt or cash injections could well come straight from him and i am sure they would be on very favorable terms and at the expense of everybody else so he will do well no matter what, Buffett has done similar over the years on many occasions