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He Aston Martin (LSE: AML) The price of shares is running ahead today, an increase of almost 15% this morning.
That is good news for me, since it was silly enough to buy the car manufacturer James Bond last year. I bought it to take advantage of a 90%drop in the value of their shares. Surely they couldn't leave more, right? I should have known it better.
Despite today's impressive rebound, Aston Martin's shares have still dropped 54% in one year and 97% in more than five.
So is today's rebound the beginning of a brilliant return to the form? I am not convinced. For me, it seems that Aston Martin's actions have just been swept in the current stock market volatility. Yesterday they fell 9%. They tend to immerse themselves faster than the market when investors feel nervous and rise faster when they feel optimistic.
How risky is this FTSE 250 stock?
When the company publishes results, the result is easier to predict. More pain for people like me. He Ftse 250 The last update of the group market was launched on February 26, and it was not good.
Aston Martin reported an extension of losses before taxes at £ 289.1 million, compared to £ 239.8 million of the previous year. Income fell 3% to £ 1.58 billion, while wholesale volumes fell 9% to 6,030. These do not indicate the recovery mode.
Management is reducing around 5% of its global workforce, throwing 170 jobs. This should save around £ 25 million, but cost reduction can only go so far. Aston Martin still needs to generate income, and that is still a challenge.
Once again, it has delayed the launch of its first electric vehicle, that luxury car customers probably do not want anyway. Is now scheduled for “The last part of the decade“Never say. I suspect that this is the favored time scale of the Board.
The New -ish CEO, Adrian Hallmark, is still optimistic while changing the group A approach “Operational Execution and Financial Sustainability Delivery”. The company is insisting on its next Support Hybrid Valhalla, which is expected in the second half of 2025. We will see.
Meanwhile, external risks close. Trump's second presidency could see 25% of the US tariffs in vehicles made in the United Kingdom. That would hit Aston Martin Hard. The struggles in China, another key market, are not helping.
It is an enormously volatile recovery play
The 10 analysts that offer pricing forecasts of one -year shares have produced an average objective of 135p. If it is correct, that is an amazing increase of more than 60% of the 84p today.
Those forecasts were produced before the last fall. They will not reflect the results of last month or the last turbulent days.
I would not suggest that any posters consider Buy Aston Martin shares. I only cling because selling my very small bet would hardly cover commercial costs. I joke, but alone.
And who knows? Maybe, just maybe, this could be the beginning of something. Maybe amazonJeff Bezos will buy Aston Martin to match his purchase of the James Bond franchise.
I could certainly pay it. The market capitalization of the group of only £ 782 million would be a small change for him. For registration, no one has suggested that amazon will buy Aston Martin, but Hope Springs Eternal!
Hope can also be expensive, especially the blind guy. Blind Hope is possibly the only reason to buy Aston Martin shares today. It didn't work for me.
(Tagstotranslate) category. Growth-Shares