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Deletedmember130310
Guest
There will be a lot of unhappy investors, particularly those who bought in at the IPO at £19.00
I think it is scandalous that is was so overpriced - the share price fell dramatically when the full year results revealed a massive loss, in part due to the huge costs of the IPO. The CEO, Andy Palmer, has already had his wrists slapped for taking far too large a remuneration package
And now this:
Shares dive as Aston Martin cuts sales forecasts, down another 23% today, and now down c45% from launch
Russ Mould, investment director at AJ Bell, said: "Floating on the stock market can boost a company's reputation and provide an opportunity for the public to buy into the story. However, it can also expose a company to criticism from investors who are watching every move like a hawk.
"Aston Martin knows all about this situation as its share price has been in freefall since floating last year as investors questioned its aggressive growth plan and valuation.
"And now it's gone and done one of the worst things a newly-listed company can do in the first year of being on the stock market, namely issue a revenue warning.
"Its credibility could be shattered for some time as investors question if they can trust management to do what they said Aston Martin would do at the time of the IPO last October. The situation shows how vulnerable it is to a period of economic weakness.
"Management may now be wishing that the business was never floated as investor sentiment has been so poor towards the brand since it went public."
"Perhaps it might be better returning to its former status as a privately-owned entity."
I think it is scandalous that is was so overpriced - the share price fell dramatically when the full year results revealed a massive loss, in part due to the huge costs of the IPO. The CEO, Andy Palmer, has already had his wrists slapped for taking far too large a remuneration package
And now this:
Shares dive as Aston Martin cuts sales forecasts, down another 23% today, and now down c45% from launch
Russ Mould, investment director at AJ Bell, said: "Floating on the stock market can boost a company's reputation and provide an opportunity for the public to buy into the story. However, it can also expose a company to criticism from investors who are watching every move like a hawk.
"Aston Martin knows all about this situation as its share price has been in freefall since floating last year as investors questioned its aggressive growth plan and valuation.
"And now it's gone and done one of the worst things a newly-listed company can do in the first year of being on the stock market, namely issue a revenue warning.
"Its credibility could be shattered for some time as investors question if they can trust management to do what they said Aston Martin would do at the time of the IPO last October. The situation shows how vulnerable it is to a period of economic weakness.
"Management may now be wishing that the business was never floated as investor sentiment has been so poor towards the brand since it went public."
"Perhaps it might be better returning to its former status as a privately-owned entity."
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