The Lemon Fool

More info:
https://www.astonmartinf1.com/investor-relations

I like the relatively short life of the bond, but 7% sets a few alarm bells ringing.

Steve

stevensfo wrote:More info:
I like the relatively short life of the bond, but 7% sets a few alarm bells ringing.

https://www.hl.co.uk/shares/shares-sear ... nd-reports

The Company appears to be losing money and hasn't paid a dividend in years. The 7% would include the market's demand for a risk premium to compensate for the risks of the Company defaulting on the loan in some manner.

Is it three times they've gone bust, or four...
I love the older cars, but 7% not enough for me.

V8

Thanks for the info, guys. I didn't know a thing about the company.

I think that for now, I will confine any interest in Aston Martin to the James Bond films.


Steve

FWIW, the company behind this is AMR GP Ltd (see https://en.wikipedia.org/wiki/AMR_GP) rather than Austin Martin Lagonda.

AMR GP is the company that runs the Austin Martin Formula One racing team and is owned by a consortium led by Lawrence Stroll whose son, Lance, drives for the team. Other than the name & sponsorship there's no connection with the car manufacturer.

I've read the prospectus now and would advise anyone interested in this bond to do the same.

I got up this morning to find a new retail bond and one that looks it will be a decent size. The prospectus says up to £250m although I doubt it will get anywhere near that. It doesn't actually specify a size they are looking for.

Regrettably as I read the prospectus I became less and less excited. I'm not sure why because 7% was already telling me there was risk.

The money is to build a wind tunnel for the F1 team and to repay £15m to Barclays. We get security over the wind tunnel.

In summary and in essence the company loses huge amounts of money as does the guarantor company so what it comes down to is faith that Stroll will support the group. Of course he's a businessman and would not want to compromise his other ventures and he's in the top 1000 billionaires or something like that.

Gan020 wrote:I've read the prospectus now and would advise anyone interested in this bond to do the same.

I got up this morning to find a new retail bond and one that looks it will be a decent size. The prospectus says up to £250m although I doubt it will get anywhere near that. It doesn't actually specify a size they are looking for.

Regrettably as I read the prospectus I became less and less excited. I'm not sure why because 7% was already telling me there was risk.

The money is to build a wind tunnel for the F1 team and to repay £15m to Barclays. We get security over the wind tunnel.

In summary and in essence the company loses huge amounts of money as does the guarantor company so what it comes down to is faith that Stroll will support the group. Of course he's a businessman and would not want to compromise his other ventures and he's in the top 1000 billionaires or something like that.

7% is a good interest rate and I was tempted. You have now put me off!

I’m out!

88V8 wrote:Is it three times they've gone bust, or four...
I love the older cars, but 7% not enough for me.

V8

Yes, they've made some great cars. But according to Wikipedia they've been in financial difficulties almost since inception. Wikipedia claims AM has gone bankrupt 7 times in its history. The article mentions 'financial difficulties', lack of capital, 'rescued' etc. in almost every paragraph. Forever hope over experience for investors.

https://en.wikipedia.org/wiki/Aston_Martin

RC

Allitnil wrote:FWIW, the company behind this is AMR GP Ltd (see https://en.wikipedia.org/wiki/AMR_GP) rather than Austin Martin Lagonda.

AMR GP is the company that runs the Austin Martin Formula One racing team and is owned by a consortium led by Lawrence Stroll whose son, Lance, drives for the team. Other than the name & sponsorship there's no connection with the car manufacturer.

As a big F1 fan it is pretty clear to me this team is not run like the others. Stroll jnr is not IMHO worthy of his seat and if his father did not own the team would have got the boot instead of Perez. Of course there are other billionaire’s sons with F1 drives bought for them by their parents’ money, but Stroll jnr is unique that his father was willing to buy a team to ensure his son retained his drive. This to me is relevant as it means I see little reason for Stroll snr to continue to stand behind the team as and when Stroll jnr is no longer interested in a drive.

I've gone for a few. A small position.

Thanks for the warning guys.
I'm steering well clear

Stroll is asking "you/us" to support his hobby which in turn keeps his son in a racing car

There are only ever going to be two winners with this bond. And one of them may not win - then everyone except Stroll looses

AiY

stevensfo wrote:I like the relatively short life of the bond....

Even shorter than one might have thought... actually, zero ...
The Aston Martin Formula One team has shelved a proposed five-year sterling retail bond to help fund its new factory because more attractive sources of financing are available, it said

https://www.channelnewsasia.com/sport/aston-martin-f1-team-shelves-proposed-retail-bond-2284361

V8

stevensfo wrote:I think that for now, I will confine any interest in Aston Martin to the James Bond films.
Steve

Seems the best idea to me
If it seems too good to be true.....

pje16 wrote:

stevensfo wrote:I think that for now, I will confine any interest in Aston Martin to the James Bond films.
Steve

Seems the best idea to me
If it seems too good to be true.....

Exactly. I know nothing about cars and the rate seemed too good to be true.

My wife is an expert. She knows that blue cars are much better than grey cars and white cars are pretty good as well.

I have to agree. Grey cars are pretty awful and black cars are okay, but I do love blue cars.

Even though the gearbox in my blue Mini Metro fell out.

But my wife has an old blue Mazda convertible and it's doing well.

So we're sticking to black, blue and white cars.

Steve

stevensfo wrote:So we're sticking to black, blue and white cars.
Steve

My current and last car, both black
Love the shine when they're clean
and use products to prolong the length they look like that

I have a black car. What products do you use?

Mine is saaphire black
this is brilliant to give it a shine and just wait til it rains
boy does it make the car look good
https://www.eurocarparts.com/p/sonax-xt ... VJEALw_wcB

I got myself a 5 litre one from Amazon
https://www.amazon.co.uk/SONAX-287500-5 ... 964&sr=8-3

pje16 wrote:Mine is saaphire black
this is brilliant to give it a shine and just wait til it rains
boy does it make the car look good
https://www.eurocarparts.com/p/sonax-xt ... VJEALw_wcB

I got myself a 5 litre one from Amazon
https://www.amazon.co.uk/SONAX-287500-5 ... 964&sr=8-3

Thanks