Aston Martin IPO?
Aston Martin needs some major investment to develop its next generation of luxury sportscars. When Aston met cute with Daimler a few months back, there was talk of Aston becoming another feather in Dr Z's mustache. Since then, Aston's owners have denied seeking a sale. It appears they prefer to take the company public. The Motor Authority reports that has Aston chairman David Richards says the company's eying an IPO that "would be for the next level of investment to finance the next models and fund engine development work where clearly there'll be a requirement for further investment." Richards said the public offering will likely take place on London's stock exchange sometime in the next three-to-five years. This time frame suggests that Aston may need the capital to pay off the $40m the boutique automaker owes Ford; payment's due by the time their engine supply contract runs out in 2012. Meanwhile, Aston will flog the bejesus out of the British brand, following Porsche, Ferrari and Lamborghini down the primrose path of branded laptops, mobile phones, etc.
I'd short this stock. Too many competitors with deep pockets. Compete with Daimler, Italians, Porsche, Rolls Royce, Bentley and even now Lexus...all of whom aggressively target this market and provide excellent product.
I'd much rather see Aston Martin do an IPO than become "partners" again with ANY car company. You'd think that looking at Chryslers experience with Daimler would be, um, a bit instructive...