I’m a relatively cautious investor but I’ve just on a bombed-out UK stock that I think is about to turn the corner. If I’m right, I expect index-thrashing gains, given that it’s crashed 96% in five years. If I’m wrong, well, it’s going to hurt.
The company in question is James Bond car maker ( ). Experienced investors will no doubt be thinking ‘there goes another sucker’ and I totally get that. Aston Martin makes sleek luxury cars but as an investment it’s been a wheezing old banger.
And not just lately but for most of its history, which stretches all the way back to 1913. Aston Martin has gone bankrupt seven times since then, and we can never say never again. Can the Aston Martin share price finally rev up? I don’t normally take big risks like this but I want to add a bit of pep to my portfolio.
Also, I’m not investing more than I can afford to lose (although I’d rather not lose it). I’ve been watching the stock for years so what made me finally click the Buy button? I was encouraged by the group’s half-year results, published on 24 July, which suggested that brighter days could lie ahead. Aston Martin’s revenues actually fell 11% to £603m as wholesale volumes dropped 32% to 1,998 units.
And while the group still posted a £233m profit, that was down 1% year on year. However, it’s in the middle of a transition, as it prepares to move on to its Vantage luxury supercar and upgraded DBX707 models. The board remains confident of hitting full-year.