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Should you buy the dirt-cheap Aston Martin share price before markets recover?

first_imgSimply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Should you buy the dirt-cheap Aston Martin share price before markets recover? I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. How much worse can it get for the Aston Martin Lagonda (LSE: AML) share price? The James Bond car maker is down another 6% this morning, after its first-quarter results showed losses growing due to coronavirus. This follows a drop of 8% yesterday, following a downgrade by analyst Peel Hunt.It would be fine if Covid-19 was mostly to blame for its woes, but it isn’t. The Aston Martin share price has fallen faster than a Bond villain out of a helicopter since floating 18 months ago. Its original £4.33bn market-cap has plunged £542m, a drop of almost 90%. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Investors who got behind the flotation have endured a hellish ride. We love a contrarian bargain on the Fool, but this is now a leap of faith.This stock keeps fallingCovid-19 was the last thing the iconic luxury car brand needed. The Aston Martin share price traded at 160p as recently as January. Today, you can buy it for around 35p.This morning, the group reported a first quarter pre-tax loss of £118.9m, almost seven times higher than last year’s £17.3m loss. Revenue fell 60% to £78.6m, amid falling dealer demand and lower average selling prices. Total wholesale volumes fell 45% to 578 units, with none at all in China in January and February.Canadian Formula 1 billionaire Lawrence Stroll, now executive chairman, took a bullish approach to these miserable numbers. He hailed the reduction in dealer inventories, a successful £536m capital raise, and the launch of its delayed DBX sports utility model. DBX “remains on track for deliveries in the summer and has a strong order book behind it extending into 2021,” he said.Aston Martin share price sinksAston Martin has a pre-eminent brand, and is now looking to develop its range of mid-engined cars, as well as refreshing its core sports car models. This may not be the end of the fundraising though, as it may have to research refinancing options to increase liquidity.Naturally, investors should approach with caution, even given today’s low, low Aston Martin share price. Demand for luxury cars may enjoy a V-shaped recovery once the pandemic is over, as many wealthy buyers will emerge financially unscathed. If the latest James Bond film is released in the autumn, that could give it another boost.It would be a brave person to recommend people buy into the stock today, and I’m no hero. The company was already in severe difficulties before the pandemic. Future funding could be harder to come by. Stronger companies could go to the wall in the months ahead. Sentiment will be in short supply. Remember, this is a company that’s gone bankrupt seven times in its history.The automotive industry is facing radical transformation as climate fears grow. But Aston Martin won’t produce its first electric car until 2025. It would need a 007 scriptwriter to get the company out of today’s tight spot. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Harvey Jones | Wednesday, 13th May, 2020 | More on: AML Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares See all posts by Harvey Joneslast_img


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