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Are the battered share prices of Aston Martin and Marks & Spencer worth investing in?

first_imgAre the battered share prices of Aston Martin and Marks & Spencer worth investing in? “This Stock Could Be Like Buying Amazon in 1997” 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. Simply click below to discover how you can take advantage of this. 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. Andy Ross | Sunday, 12th July, 2020 | More on: AML MKS Our 6 ‘Best Buys Now’ Shares 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 Image source: Aston Martin Enter Your Email Address Andy Ross owns no share 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! It is tempting as investors to look for bargains, but that can sometimes lead to investing in bad companies. Cheap share prices can keeping going down. Sometimes all the way to zero. That’s why it’s a game that you need to be confident of winning.There’s nothing in the recent performances of either Aston Martin Lagonda (LSE: AML) or Marks & Spencer (LSE: MKS) to reassure me that a turnaround in the fortunes of their battered share prices is on the cards.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…Change at Aston Martin but troubles remainLooking first at Aston Martin, the main hope is that the backing of billionaire executive chair Lawrence Stroll will be enough to help the company improve. That along with a new CEO from Mercedes AMG could prove a boost.There’s also the production of its new DBX SUV, which Aston Martin claims has strong forward sales orders.Taking these in order I’m not sure they’ll be enough to help the shares reverse their current path downwards. Stoll made his money in fashion investing and though he might be a petrolhead he’s not putting a large part of his fortune on the line to rescue Aston Martin. I think buying the shares simply to follow where a billionaire has put a small part of their money is foolish – in a bad way.The new CEO will have a lot on his plate and although he’ll know Aston Martin well it remains to be seen if he’ll have all the answers to its many problems.  The last hope is that another company – perhaps Daimler – will bid for the company. But again, to invest in the hope of a bid doesn’t seem sensible. That’s just gambling.Overall, the increasing debt, the placing of news shares, the high interest Aston Martin has to pay to secure new financing all combine to make me less than optimistic about an improvement any time soon in the share price.Too big and too slowMarks & Spencer is another upmarket brand that’s struggling. Struggles with clothing and reaching a new younger audience seem to be behind its troubles and explain why the share price is falling.M&S is still quite quaint. It’s online offering – even following a tie up with Ocado that cost around £750m – seems rather lacking. The group has been slow to adapt when competitors have seen change coming and pivoted. M&S is on the back foot.Covid-19 hasn’t heped. M&S lost £52m in March alone because of the coronavirus. Even fewer customers in stores and a lack of online presence will likely have hit M&S harder than rivals. The executives talk of strategies, but delivery has continued to be woeful. That’s why I don’t think the shares are likely to improve any time soon. No matter how cheap the shares get, there’s always room for the share price to go lower. On that basis, I find neither Aston Martin nor M&S an exciting long-term recovery investment. I suspect both shares are value traps.  See all posts by Andy Rosslast_img read more