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Aston Martin Lagonda (AML.L)

Aston Martin Lagonda

AML.L

PIG Stocks™ Analysis



Steady Downward Plunge Since October 2018


With a steady downward plunge (perhaps that’s why they acquired Triton Submarines), since going public in October 2018 AML.L seems ripe for take-over/purchase (perhaps for as little as their overwhelming debt).

In AML.L’s 2016 financial Report (the only type of financial reporting that they have made available as of yet), there was sadly, no talk of submarines (Acquired Triton Submarines in 2017).

With a steady downward plunge (perhaps that’s why they acquired Triton Subs), since going public in October 2018 AML.L seems ripe for take-over/purchase (perhaps for as little as their overwhelming debt).


Who might purchase AML.L if the price was right? Daimler AG (Mercedes) seems like a perfect candidate. Already owning 4.92% and also providing their high-performance engines. But if not Daimler-AG (Mercedes) then whom?


Follow The Bread Crumbs

AML.L With a current P/E of (so negative that it’s not calculable), an EPS of -867 and MANY other up to date key financial figures, including their most recently published Annual Report, which of course is “Yesterday’s news”, the forecast does not look positive.

Current Figures April, 21, 2021 (Non calculable & EPS of -543.10).


Their growth strategy seems to be diametrically opposed to their actions. Their claim/reason for breakthrough profitability, is due to the sale of their DB11 (very high-priced car), which increased revenue 16.3%), yet their plan has been to jump into the higher quantity output game, competing with such brands as Maserati and others putting out lower price point vehicles and even an SUV. Why? Why not stay with their roots and follow Ferraris model? And now AML.L is entering the electric car niche.

The leadership has been quick to blame (and is still blaming), everything from its workers, past leadership, higher costs to ship parts, trade wars, even Brexit, but the real reason is because of poor strategy and bad ideas. (As of Pandemic, they are also blaming pandemic).


Follow the Breadcrumbs... Perhaps "Zhejiang Geely Holding Group”?

The iconic London Taxi Company (LTC) became the London Electric Vehicle Company (LEVC) in July 2017.

The name change represents the commitment by LEVC, a subsidiary (owned by Zhejiang Geely Holding Group of China) to become the leading producer of new energy focused urban commercial vehicles.


In June 2017, Lotus Cars became majority owned by Zhejiang Geely Holding Group of China.

Volvo Car Group (Volvo Cars) is now owned by Zhejiang Geely Holding (Zhejiang Geely Holding Groupg) of China.

February 23, 2018 Chinese manufacturer Zhejiang Geely Holding Group Co. acquired an approximately $9-billion stake in “Daimler AG” to become the largest investor in the German automaker.


Update April 2021

The leadership continues to blame everything from its workers, past leadership, higher costs to ship parts, trade wars, Brexit and of course the pandemic, but the real reason is because of poor strategy and bad ideas.

AML has done “everything” wrong. It’s almost hard to believe that they didn’t do it on purpose. Their strategic plan has been wrong. Their operations have been wrong. Their growth, markets and sales plans / assumptions have been wrong. Their acquisitions have been wrong. Their design strategy has been wrong. Their sourcing has been wrong. Even now, with all of these mistakes behind them, they are still heading in the wrong direction.

At the time of the 2016 AR, the buyout could have been about $700M of debt. After this last year, I’d have to say it would be substantially less. The right buyer or group of buyers should scoop them up and do a complete restructure and overhaul. I think that would save AML. Pull completely back. Take the loss on the SUV and some of these other cheaper models, and cut them loose. Completely downsize the company (facilities, staff, locations, sourcing, etc.).

Sell off submarines, helicopter ventures, dwellings, etc. Regroup, re-market and reinvent. Come back as “THE” high end luxury premium sports car and go head to head (mirror) Farrari. *But Farrari is another story, and another Pig Stocks analysis.

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