Aston Martin Lagonda (lon:aml)
AML – What Does Toto Wolff Know?

Aston Martin Lagonda Financials

ItemCurrent PeriodPrevious Period
Year20192018
Period12 Months12 Months
Revenue£997m£1097m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA£134m£247m
Statutory Profit(£104m)(£57m)
Adjusted Profit
Total Debt
Net Debt£876m£560m

Commentary History
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Aston Martin Lagonda Share Price
Grade:The Black Grade - Shares That I Think Could Collapse To Nothing Or Suffer A Massive Share Issue.
Title: AML – What Does Toto Wolff Know?
Company: AML - Aston Martin Lagonda
Share Price Then: 58p
Author: Ian Smith
Date: Tue 21 Apr 2020
Comments: On Friday, 17th April, Toto Wolff bought just under 5% of Aston Martin, possibly from Yew Tree, so what does Toto know that I don’t?

Toto runs the F1 team part owned by Mercedes which also has a strong relationship with the Racing Point F1 team that is to be Aston Martin branded next year.

Mercedes have been openly supportive of the Aston share holding describing it as an investment.

So what is going on? I am sure that Aston is a huge risk yet Lawrence Stroll and Toto Wolff have chosen now to buy in even after COVID 19.

Okay the rights issue shares were at 30p and according to an RNS/TR1 Yew Tree are now down to a 13% holding but it is unclear at what price those shares were sold at.

Unless Toto Wolff is going to take a big stake in Racing Point any benefit to RP from Aston Martin involvement and unless Aston has a massive sales increase possibly detrimental to Aston in the short and medium term.

Mercedes already supply parts to Aston Martin, so is Mercedes considering upping its stake and making it a Mercedes brand?

Or arr they both in it for the long term, surely it will take a 5 plus years for the Aston Martin brand to gain from F1 involvement and will the company last that long if the DBX does sell well.

I also wonder if F1 as a promotional tool for Aston Martin is valid, F1 audiences tend to be older and generally people get converted to brands when they are younger.

How many of us wanted a Ferrari when we were 12, now at 50 would we be persuaded to by Aston because of F1 success? Probably not because if we could afford one we probably won't be all that interested in F1.

The problem with that is that they seem to have a quite small share holding, unless there is the expectation of another rights issue that will allow them to acquire a bigger percentage of the company.
Read Count: 218/10123

Buy/No Buy In A Nutshell
NegativesToo much debt and they have already done a share issue to fix that, very heavily reliant on sales of the DBX the new SUV, a worrying number of statements about how sponsoring the Stroll owned F1 team is great news.
PositivesNew management getting much more aggressive with people complaining that they asked for and were given loans but they can't afford them.
Initial Review Price51p
Last Review Price55.73p
Last Review Date02-Sep-2020
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