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The United Kingdom stock market offers many fallen actions for investors to execute the rule. However, some do not attract me, despite the potential value that is offered.
Here are two FTSE 250 actions that I am avoiding today.
A car accident
The first is Aston Martin Lagonda (LSE: AML). After falling 28% to date, the actions of the iconic luxury car manufacturer are languishing near a historical minimum.
Now at 76p, the action has lost a shocking 98% of its value since it is listed in 2018!
I am a great admirer of the brand, heritage, James Bond and all that. And over the years, I have sought reasons to invest in a potential change. But Aston Martin simply gives me anything to fix my hopes.
Last year, total total volumes fell 9% to 6,030, due to supply chain interruptions and weak demand in China. The loss of adjusted tax was £ 255.5 million, worsening for a loss of £ 178.8 million the previous year.
Meanwhile, net debt increased 43% to £ 1.16 billion. Continuous losses and balance continue to be the main risks here.
On the positive side, the company has introduced several new models. The new CEO Adrian Hallmark says they represent the “The strongest product portfolio in our 112 years of history”
In addition, the company aims to generate a positive free cash flow in the second half of 2025. Perhaps this is something that can rekindle investor enthusiasm.
And although we cannot assess the action in the profits, since there is none, the price to sales price of 0.46 seems quite low.
However, management is only guiding for the percentage growth of middle digits in wholesale volumes by 2025. That is not enough to tempt me to buy shares, especially when a recession of the United Kingdom, or even potentially American, could be on cards at the end of this year.
A Battle Upper for Eye Balloons
The second FTSE 250 action that I am avoiding is ITVV (LSE: ITV). While a five -year table shows that the action has increased around 27%, that is a bit misleading. In March 2020, we had the collapse of the Covid market that briefly brought almost all knee shares.
Affirming more, the action has dropped 36% in six years and has lost more than 65% of its value in a decade.
Now, I see ITV at much less risky than Aston Martin. To begin with, the station is profitable and does not seem in danger of going bankrupt.
In addition, it has a multiple of 7.8 of 7.8, and offers a dividend yield of 6.2%. So I certainly appreciate why I could attract value investors.
But I worry the maximum growth potential of ITVX, the company's transmission platform, in the current digital panorama. Of Netflix and Disney For YouTube and Tiktok, it has a massive competition for eyeballs. I only see that it intensifies in the future.
Meanwhile, writing has been on the wall for the traditional ITV linear television business. Apparently, less than half of the spectators of generation Z regularly watch television, while CORONATORY STREET It is obtaining only 10% of the audience compared to its apogee of 1987.
Finally, there is the production arm (ITV Studios), which is behind international successes such as Love Island and Duty line. I like this business side, but the reports suggest that it could be sold. That makes me even less inclined to invest in ITV in the long term.
(Tagstotranslate) category. Investing