Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
What Is a Reverse Stock Split?
A reverse stock split is a measure taken by companies to reduce their number of outstanding shares in the market. Existing shares are consolidated into fewer, proportionally more valuable, shares, resulting in a boost to the company’s stock price.
If it simply declares the reverse split and goes on with business as usual, investors may see the split as nothing more than a smoke screen, and the price may go right back to falling as they sell their shares. But if the split is accompanied by serious changes in management, structure or strategy, investors may give the company more time to right the ship.
If you did your research properly you would know that Aston Martin has a fresh business plan which is being executed by some of the best in the business, with the backing of a huge manufacturer. This is all part of a much bigger plan and not just a way to keep the business afloat by more dilutions.
Expert Reactions to Reverse Splits on Zacks.
Charles ******, president of the investment consulting firm Equity Analytics, told Bankrate.com, "It is usually a very negative sign when a company reverse splits their stocks." But how the market reacts often depends on what else the company is doing to reverse its fortunes.
If it simply declares the reverse split and goes on with business as usual, investors may see the split as nothing more than a smoke screen, and the price may go right back to falling as they sell their shares. But if the split is accompanied by serious changes in management, structure or strategy, investors may give the company more time to right the ship.
Aston Martin has a fresh business plan which is being executed by some of the best in the business, with the backing of a huge manufacturer. It could all go wrong, but I believe this is all part of a much bigger plan and not just a way to keep the business afloat by more dilutions.
Although this a Palmer pre stroll article, it does makes sense. Palmer discusses the difficulties of a no deal brexit.
As a luxury car manufacturer Aston Martin is more able to mitigate against tariffs as they are more able to adapt vehicle pricing to absorb these.
As sterling falls cars get cheaper for overseas customers. Although he does state that importation of parts could be an issue, but I’m sure Mercedes can do something with the pricing of their technology to mitigate against that too. After all it is in their best interest.
What are your thoughts?
https://www.independent.co.uk/news/business/news/brexit-no-deal-aston-martin-cars-luxury-cheap-cost-a8854461.html
My personal feeling, which could be construed as blind faith. I don’t for one minute believe stroll will let this one drop much after consolidation. If the SP drops dramatically, faith will be lost and investors will jump ship in their thousands effectively derailing the business and business plan.
IMHO there is some significant positive news stories in the pipeline order to give the SP momentum post consolidation.
Strolls business decisions have been perfect to date and I have no reason to doubt so far.
All LTH have been here before. This is high risk high reward, like others I have been rewarded for my patience.
We’ve all seen this share price float around doing nothing for months, then drop like a stone only to rise rapidly beyond our expectations.
This is a recovery play and something is brewing..
Stroll said Aston's current growth trajectory meant "the public markets are the right place" for the firm whilst eying an increase in the value of its shares, which stand at 79 pence ($1.06).
"They'll be significantly worth more than they are today," he said.
Record date for capital reorganisation : 6pm 11th December
Admission of, and dealing commence in, the consolidated shares: 8am 14th December
That’s lifted from the timeline in the prospectus. So assume all will be consolidated on 14th?
IT gurus may correct me as I’m not 100% in this area. Maybe a coincidence however when one does a simple email address validation for Andy Cowell ( Previous MD of Mercedes AMG HPP) using the same email regular expression as other Aston Martin personnel.
{firstname}.{last name}@astonmartin.com
andy.cowell@astonmartin.com returns a positive result as having a mailbox.
It could be a ‘collect all’ email address so nothing to read into as could give a false positive. But, when you type in random names using the regular expression the online email validation tools it comes back negative. Spooky or is that just me?
He also resigned from his Mercedes position on 30th June. Standard 6 month gardening leave for engineers would take to 30 December...
Could Andy be working on the new electrified v6 powertrain? Or stepping in to prepare Aston for the next gen F1 engine regs.
He’s been working in a consulting role for Mercedes and seems to have left on good terms. One media quote about cowell leaving from Mercedes COO Markus Schafer got me thinking:
“I also wish to say a special thanks to Andy for his contribution to Mercedes over the past sixteen years. His legacy at Mercedes is not measured simply in race wins and world championships, it is also in the competitive spirit and engineering ambition that characterise the team at HPP. Andy will support a major project of Mercedes-Benz AG and we wish him well for the next stage of his career.”
Wonder what that major project is.. ?
Probably already been posted, but nice to see the DBX claim ‘Super SUV of the year’ by Top Gear.
https://www.topgear.com/car-news/2020-topgearcom-awards/revealed-winners-2020-topgearcom-awards#4
I know this is probably a massive coincidence and reading far to much into it. Consolidation key dates sandwich the final round of the F1 world championship in Abu Dhabi 11th-13th December. Will we get some more big F1 news to kickstart things upwards? Who knows?