Fasten your seat belt! Why I think the Aston Martin share price could go downhill from here

first_img Ellen Leung | Thursday, 4th June, 2020 | More on: AML Simply click below to discover how you can take advantage of this. It has been a roller-coaster ride for the Aston Martin Lagonda (LSE: AML) share price. The company has been publicly listed since October 2018 – and the share price has been going down since then. So this is not purely a coronavirus-impacted collapse. And here is why I think its share price could continue to go downhill from here.The Aston Martin share price could plummet without proven leadershipThe departure of CEO Andy Palmer indicates the long-time failing leadership within the company, in my opinion. Even with the incoming CEO Tobias Moers from Mercedes, I don’t see a quick turnaround for a company that is slowly losing its brand appeal. Major shareholder Investindustrial Advisors Ltd also cut its stake in the company by nearly 5% to 14.99%.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…On top of the Covid-19 crisis, the company was already suffering from the effect of the US-China trade war, with demand slumping from wealthy Chinese customers in 2019. The global automotive industry has undergone a tough year.Murky earnings outlookAston Martin last month posted a big first-quarter loss after sales dropped by almost a third due to the impact of the coronavirus outbreak. The company has been experiencing a negative net profit in the last two years. With the ongoing impact of coronavirus and no end in sight, I would not bet on a near-term revenue increase, let alone earnings.Additionally, a healthy balance sheet is more important than ever in this uncertain time. Aston Martin’s debt level has increased by double digits year-over-year, which is very concerning. The cash-strapped company had to raise £536m to increase liquidity to fund its short-term working capital needs. The funding comes from Canadian billionaire Lawrence Stroll, who took a 25% stake in the company. Meanwhile, it is also raising proceeds of £317 million by issuing new shares. This will dilute existing shareholder value, which isn’t exactly great.My verdictThe stock might look very cheap on the surface to some. But when looking closely at its limited revenue growth with slumping global sales, especially in China, I don’t see the company having a very bright future ahead.It is clear that Aston Martin had problems before the Covid-19 crisis, and that’s why its share price was hit so hard amid the pandemic-related sell-off. I think it is fair to say car manufacturers like Aston Martin will take a lot longer to recover, if it recovers at all. Therefore, I will stay away from the stock. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images Ellen Leung has no position in any of the shares mentioned in this article. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Fasten your seat belt! Why I think the Aston Martin share price could go downhill from here Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 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No cabinet position means Mid West will need special attention

first_imgBusinessLimerickNewsNo cabinet position means Mid West will need special attentionBy Staff Reporter – July 12, 2020 115 Print Facebook WATCH: “Everyone is fighting so hard to get on” – Pat Ryan on competitive camogie squads TAGSKeeping Limerick PostedlimerickLIMERICK ChamberLimerick Post Limerick Ladies National Football League opener to be streamed live RELATED ARTICLESMORE FROM AUTHOR WhatsApp Billy Lee names strong Limerick side to take on Wicklow in crucial Division 3 clash THE new Government has been asked to give specific attention to the Mid West region in light of the storm clouds gathering over the local economy.Commenting on the absence of representation from the Mid-West in the second successive cabinet, Limerick Chamber President David Jeffreys said that the government will have no option but to give special attention to the region.Sign up for the weekly Limerick Post newsletter Sign Up “Considering the population of Limerick and the wider Mid-West, we are naturally very disappointed and concerned that we did not get a senior cabinet ministry for the second time in succession. Limerick has been working hard to recover from the impact of the 2008 financial crisis, the departure of large-scale computer manufacturing and the damaging legacy of having two local authorities,” Mr Jeffreys explained.“We will give the newly formed government the benefit of the doubt that the lack of a senior minister will not deny the region in any way. They must recognise that large swathes of the local economy here is at tipping point.“The impact of Covid-19 is yet to be fully realised, with the worst likely to be ahead of us. So far, we have had a complete collapse of international tourism in the region, Shannon Airport has been floored by the impact and, as a result, the lack of corporate travel is having a double impact on our hotels.“Our city centre is already struggling for footfall and major losses have been endured over recent weeks and months with the closure of big brand retailers such as Debenhams in April and now Argos in June, without even mentioning the numerous independent retailers who have already closed their doors.“Most SMEs are severely challenged, being heavily dependent on the current government subsidies and it’s reasonable to assume that foreign direct investment will be severely hampered. Key elements of the agri sector are in crisis and then we have Brexit coming down the line.“Now is a time for Limerick and theMid-West to get specific attention and I cannot see how this government would not recognise that. We look forward to a constructive, positive working relationship with its members here as we seek to ensure that we get the attention we deserve. We cannot accept anything else,” Mr Jeffreys declared.Chief executive Dee Ryan said the Chamber will not be found wanting if the worst fears around the cabinet make-up were to be realised.“There are key red line issues for us that this government has to act on and they include City centre revitalisation, support for Shannon Airport, maximising the enormous opportunity from the natural deep waters of the estuary, developing the M20 as a priority, as well as the link road to Foynes and the Northern Distributor Road.“All of these will deliver an economic dividend to the city, region and state so we see no reason whatsoever why they would not happen,” Ms Ryan added.center_img Previous articleNew Limerick Tourism Taskforce plans for development of sectorNext articleVictory for Gortadroma residents as gasification project abandoned Staff Reporterhttp://www.limerickpost.ie Twitter Predictions on the future of learning discussed at Limerick Lifelong Learning Festival Email Advertisement Linkedin Donal Ryan names Limerick Ladies Football team for League opener Limerick’s National Camogie League double header to be streamed live last_img read more