Aston Martin First Day Trading

[dgmx5]

So a drop of 8% from the IPO price at the start of the day which was itself in the bottom half of the range.

Currently trading at 1755p whereas the high end of the IPO range was 2250p. A, speculative, valuation of 25% more than its price this afternoon equates to approx £1billion off the value of the company.

And they employed 12 investment banks on the offering.

It's a different world from that which the majority live in.

 

[Felonious Crud]

The minimum investment was £10k. I declined.

 

[dgmx5]

Better to have spent £30k on an early 4.2 V8 Vantage... you would struggle to lose the equivalent £2,400 in a day.

 

[bigbob]

Remember the Ferrari* IPO tanked from it's US$52 issue price, now 2.5 times that. Albeit it did manage to increase on day1.

*EPIC code of RACE which is ultra cool.

 

[JonW]

I think first day trading is meaningless. It's hugely emotional, and there's a bunch of one off stuff that distorts the market. This includes the investment banks (and other speculative traders) maximising their fees / income / profits, and other big institutional investors balancing their portfolios

 

[daverichardson]

Would you really sink money into a firm that has been bankrupt 6 or 7 times?
Not me thank you very much

 

[zagatoes30]

Reminds me of the old David Brown story, one of his mates asked could he buy a new DB5 at mates rates cost price. David apparently responded RRP is £4k cost price is £5k so certainly.

 

[Contigo]

Reminds me of the Royal Mail, IPO. It was the easiest £600 I've ever made. Bought on oversubscription and then sold the same day they listed. IT was massively undervalued from the start unlike Aston which is massively overvalued on a loss making company who have only recently broken even.

 

[midlifecrisis]

The Aston Martin IPO was definitely playing on its 007, DB5 heartstrings. Even the spread betting brokers were playing it up.
I stayed clear and didn't lose anything...