8. 1. 2020

KGI Demands Clarity over Lawrence Stroll Bid for Aston Martin

Krupa Global Investments (KGI) requests more information from Aston Martin‘s management regarding potential bid from Formula 1 billionaire Lawrence Stroll and other potential buyers of significant stakes in Aston Martin.

Aston Martin has been under extreme pressure since its London debut in 2018. Shares dropped more than 70% and company already issued several profit warning caused by Brexit uncertainty and sales weakness in Europe. New SUV model DBX has been selling above expectation so far but it does not have any influence on overall performance at this point. It will take few quarters to prove that DBX is comparably successful to Bentley Bentayga, Lamborgini Urus and other competitors.

KGI wants to see detailed explanations of recent news that several investors such Lawrence Stroll who claimed that is preparing bid for significant stake in Aston Martin did not provide any relevant information to regular investors. We urge management of Aston Martin to unveil whether these media headlines are real or it is only market speculation which makes Aston Martin stock extremely volatile.

We believe that this kind of behaviour should not be tolerated by company such Aston Martin. This action should be reported to FCA for market manipulation if we can prove that Lawrence Stroll and others are not really interested in buying stake in Aston Martin. On the other hand, Mr. Stroll should prove whether his wealth is adequate for an Aston Martin which is still £1bln+ company, because KGI think that this kind of rumours are only market speculations of certain investors which should not be taken seriously and potentially punished by regulators.

KGI would consider Aston Martin shares as opportunity but in different environment where speculators and bad results don’t push share price down on daily basis. KGI expects further decline in Aston Martin shares below 350gbp per share until management shows clear turnaround path.