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Writer's pictureMJ

Why You Should Buy An Aston Martin Now

Updated: Oct 30



Many of you have been asking me over and over again about updated $AML.L (Aston Martin Lagonda Global Holdings PLC) post that ok – here it is.


BACKGROUND:

Aston Martin, the famed British automotive manufacturer, is currently an exciting bullish investment opportunity. The recent reverse stock split worked well as $AML.L reaches $2 billion in valuation. The recent growth has been due to a surprising demand of the luxury sports cars, specifically increasing demand in China. Since IPO in 2018, Aston Martin has been in limbo on the stock market leading to $AML.L hitting a record low at the onset of the pandemic. However, the stock has been on quite the run since October, gaining roughly 40%. New vehicle offerings, such as the DBX, and a revamped marketing campaign have been enough to earn back the losses from the pandemic. In addition, Mercedes-Benz has recently confirmed that it will lift its stake in Aston Martin to up to 20% by 2023, eventually making it one of the British carmaker’s largest shareholders. Aston Martin has been more or less on the uptick since March after billionaire Lawrence Stroll injected over $655 million into the company, making him the new executive chairman in the process. It seems for now that the company known for the iconic James Bond car still has a few tricks up their sleeve.


MEAT (AKA DATA):

🔹️ Brand Value that was falling down has been estimated at c.4B USD. With Formula 1, Sebastian Vettel, DBX, DBS, DB11 and many more … and now Supercar Blondi … I think we sit at least at 5B USD …

🔹️ Market Cap of c.2B … $RACE (Ferrari NV) at 40B … That’s 20X => Consequently I believe we will go to at least c.10B and Ferrari will go down to c.30B long term

🔹️ Total Debt to EBITDA at FY0 stood at 6.14. The same metric for FY3 stands at 4.08 (prediction – source: Refinitiv). That should be the most important thing you care about.

🔹️ Revenue at FY0 at 0.98B … at FY3 1.24 (double the FY1 – i.e. now due to Covid-19)

🔹️ EPS Growth predicted for FY2 – c.60% and an FY3 at c.120%

🔹️ 90% of Revenue comes from the sales of vehicles

🔹️ Geographically – c.30% Americas, c.24.2% Asia, and then c.23% for the UK and 23% EMEA

🔹️ Top Investor apart from all the F1 folks we know – Invesco at 4.54% SO (5.22M position)


If you read this again, we are basically at ¼ of Ferrari’s Revenue but 1/20th of their Market Cap.


WHICH AND WHEN TO BUY?

Now, I wrote about this again and again and again. My PT of 83 materialized sooner than expected. It used to be our biggest position. It still is with X5 on the famous 2nd account that I have generated a few hundred %.


Regarding the timing of this stock, I would just BUY and HODL (I still don't know/remember fully what that means) if I were you. At 2B valuation, we are still half price thanks to BREXIT, COVID-19, and the overall WWIII in the UK.


My new, Revised, PT is set at 2911.


That’s for stock. Regarding cars, I would be buying DBX for each of your company. Clients will be comfortable in this and you can expense and depreciate the rest. If you want to have fun and made less than 100K profit on your stocks this year, I would buy an old Vantage or DB9. These are dirt cheap, make lots of noise, and will keep the value.


If you have lots of money and wanted to have $RACE before and are bored with $PAH3.DE (Porsche Automobil Holding SE) (yes, there comes a point when you want something more exotic) – you cannot go wrong with the new DB11 Volante. If you can do DBS – then I am jealous.


This is probably one of the best stocks on the market. I had a 007 ringtone for the last few years and if I could ask $AAPL (Apple) to make it louder – I would do so. $UK100 and $AML.L are for me the safest investments in the entire world.


Thanks,

MJ


PS. All my investments and portfolio are public. To join eToro please follow the link: https://bit.ly/3i7Yo3C


Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

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