16
2009
Los Angeles to Abu Dhabi in 2 hours
I’m pretty sure most of you know who Sir Richard Branson is and what he’s trying to do to not only change the way we travel but revolutionize it. Man has conquered the ground, sea and even the sky but Branson wants to conquer space. Sounds nifty eh? It should because in space there is close to no limit on how fast something can travel. As humans, we were all implanted with something that makes us love to travel to different places but we hate the part where we get on the plane and do nothing but sit and go to the loo.
This is where Bransons revolutionary Virgin Galactic project comes in because with this service you’ll be able to travel from places like Abu Dhabi and LA in a measly 2 hours when on an everyday commercial jet it takes us close to a day to get there. Aabar Investments is in the middle of an attempt to acquiring 32% of Virgin Galactic share at a measly $280 million. What they’re trying to do is create a main hub in Abu Dhabi. Just like a Heathrow, JFK or a Schiphol but in the Middle East.
You might’ve noticed that I said “measly $280 million” and the reason is that for a project that can improve an everyday task that millions of people undertake on a daily basis this is a bargain! Why didn’t someone in Kuwait think of this? I would go with shares from this company over Aston Martin with my eyes closed. This is one thing that can possibly put us on the map again but it’s taken.
Thanks Zaina.
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Hello! Nice story you’ve got there, looks good and all. However, as glamorous as this company looks, it is not nearly as good to go and up and going as they seem to be, Sir Richard Branson is the King of marketing you know. Why am I saying this? Because I really really didn’t like your comment on the part of comparing Kuwait to Aabar and comparing this investment to Aston Martin. I will tell you why
. You have indirectly harshly criticized the Aston Martin deal with absolutely no information whatsoever concerning the two deals. People, including you, seem to think everything is rosy and simple and easy, why didnt we do this? why didnt we do that. First of all, Id choose Aston Martin over this anyday of the week. First of all, the “measly” price tag you mentioned is clear proof of the lack of strength of the company. Its still in its earliest periods. Theyre doing planes for 6 passengers, very efficient indeed. Comparing Aston Martin to Virgin Atlantic, and in the same time considering the Kuwait Company was a NON-Governmental company that has to pay its shareholers. First of all, Aston Martin gives you an immediate cash flow, which is absolutely necessary especially that it was bought out through a leveraged buy out (LBO), which requires the company to repay the debt through the its own cashflow. Aabar doesnt give a rats poop if it returns its investment today or in 25 years becasue you know whos behind them? The Gov’t of Abu Dhabi with a 1.2 trillion sovereign wealth fund. This was a pure marketing investment for Aabar with a strategic twist to make Abi Dhabi a Hub. So as you can see, from a “business” perspective, if you want to make money in the near future and you DONT have unlimited resources to play with, then Virgin Galactic would be a disastrous purchase.
I know this is too much of a response on one sentence you said but some people get hurt from such statements. “With my eyes closed” you say. I can promise you, guarantee you 1000%, that if Investment Dar Co. had bought 32% of Virgin Galactic, oh the criticism would not end. What the hell is Investment Dar thinking investing in this space company. Kuwaities unfortunately are never satisfied with what they get, yet they always ask why not us? You have to think logically before saying why not US? and why did THEY do that? Sorry for the inconvenience
And Aston Martin I promise you, in less than 5 or 6 years, you will say, here on this blog, “My God was this an amazing investment or an amazing investment??” I promise.
Thanks!
and sorry for the one million first of alls, i get too excited sometimes
Saoud ..
Thanks for the reply .. but i don’t see how he “indirectly harshly criticized the Aston Martin deal with absolutely no information whatsoever concerning the two deals”.. no where did he state that al dar made a mistake in choosing aston over galactic and no where did he harshly criticize the deal.. all he said was “I would go with shares from this company over Aston Martin with my eyes closed”.. Its a matter of preference.. its like me saying “I would easily go with shares of Boeing over Porsche” did I insult any investor in this statement? Did I say that VW did not make the right choice of buying their shares in porsche, they should have bought shares in boeing? no..
“People including you, always think things are rosy?” excuse me .. didn’t you end your comment with “And Aston Martin I promise you, in less than 5 or 6 years, you will say, here on this blog, “My God was this an amazing investment or an amazing investment??” I promise.” no no no … not rosy at all
you basically predicted the actions of all consumers in the world towards aston martin.. you have you’re advanced skills in business but go back and check on supply and demand.. “I promise u in 5 or 6 years” let me remind you that you were just criticizing the fact that galactic might take forever to project profits.. and lets not forget that galactic is a completely new concept.. Space… it does not have the simple 4 wheels and an engine.. why did you allow 5 or 6 for al dar to project profits or even grow aston martin further? and why 5 or 6 years .. why didn’t you 6 or 7? or doesn’t 7 or 8 sound even catchier? 
here read this: http://www.guardian.co.uk/business/2009/sep/27/automotive-industry-manufacturing-sector
And Finally, I wouldn’t be doubting Richard Branson…He started selling records out of the back of his trunk and now he’s going to space.. call the king of marketing or the king of whatever you want him to be.. but his success cannot be doubted..
I like how you carry your arguments, but as soon as I saw that you’re trying to prove people wrong for the sole purpose of becoming right I had to reply the same way..
“but as soon as I saw that you’re trying to prove people wrong for the sole purpose of becoming right I had to reply the same way..” hehehe hello savior
.. so lets see, where shall I start..
1. Your first point on preference. No, in fact it wasn’t a matter of preference bs. You see: “Why didn’t someone in Kuwait think of this? I would go with shares from this company over Aston Martin with my eyes closed.” Criticism of wa’63 likuwait, and association of Aston Martin as a product of this dysfunctional system. He immediately jumps from Kuwait to Aston Martin. Please don’t tell me no relation. If you think so then well agree to disagree. Also, you example of Boeing and Porsche, you cant use preference about that either, your wrong too? Preference comes when there is logic, like Aston martin or Bentley? But preference between VW and Boeing no.. You see VW and Porsche can form a strategic partnership in much more ways than Boeing and VW.. : )
2. About me being rosy, not at all. My claim was people always think everything is rosy saying this and saying that when they really barely know anything about the subject. All they say is why isn’t anyone in Kuwait doing this? Aston Martin? Look at Abu Dhabi ooh Virgin Galactic, when it cannot ever be seen that way, because there is no logic in that? State Owned Co vs. Public Co., limited cash vs. unlimited cash, different takeover opportunities emerge in different times and places? And much more .. I, on the other hand, am no no no … not rosy at all my friend because I said I promise in 5 or 6 years etc.. because im saying this based on what Aston Martin are doing, whats going on INSIDE the company, what cars they’re coming up with that neither you nor your friend have seen, and what segments they’re developing cars to compete in.. im not at all rosy .. I like to think of my future career as very rosy indeed though.. just to note.
3. About me saying 5, 6 years for AM yet criticizing Galactic. First of all, by forever I meant much more than 5 years for galactic to turn into an efficient company that generates good returns on its invested capital that compete with well off market returns. Why did I allow Inv. Dar 5 or 6 years to turn profits? Just to clraify, they already made record profits the first two years of owning Aston Martin and opened the first dealerships in China, India, Russia, Croatia, Turkey, and the list goes on and on and on. They created the first Aston Martin Design Studio, Aston has won the Lemans and dominated its racing segments under Inv. Dar, the Gaydon Factory under Inv. Dar has reaced full capacity although they increased the 2 shift to 3 shifts yet supply cant keep up with the demand, and I can go on and on till after tomorrow. Now, naturally, Aston is as affected as all the other car companies, if not less. Why not 6 or 7 years or yet more for my “vision”, may i call it, to materialize? Because again, I know their plans and what I mentioned above earlier.
4. Ur link: This proved your absolute sheer ignorance concerning the subject you’re talking to me about. Investment Dar problems have absolutely nothing to do with Aston Martin, a management mistake, was going to be fatal I admit, of applying short term debt to long term projects (Not including Aston, which is an LBO, leveraged but out that is, again, that repays its debt with its own cashflow), creating problems when the credit dried out during the crisis. Now all is going well again, they have agreed on a restructuring plan with banks, and will be back on their feet before no time. So your link is sort of.. useless? Because I cant see where Aston Martin caused that or was affected there? It only says, and may inform you that the British media loves taunting foreign companies that takeover iconic British companies (in Jaguar and LandRovers case Tata has been slaughtered in the Media), that Aston Martin MIGHT be in danger because of Inv. Dar trouble, and if you have been following the news, Inv. Dar once and twice and three times confirmed that Aston Martin will not be for sale EVEN if they had to get rid of other assets.
I think I’m done here? Anything else? I’m more than happy to clarify any other misunderstandings if anyone has any?
Alright, I’ll be departing to India right now
goodnight everyone! It was a pleasure sorting the misunderstandings out.
1- At the moment, VW did not mobilize the assets they received from the acquisition to their favor so its irrelevant that you’re arguing its a “strategic partnership” now.. maybe in a few years. I was just making an example..
2- Claiming that aston will make profits in 5 or 6 years based on absolutely no support is rosy
3- I did not ask anything about aston’s achievements
you can make an aston dealership in zimbabwe but that doesn’t mean the company is doing well..
4- sheer ignorance? lol.. if dar has nothing to do with aston.. then all the points you made are irrelevant ;p because you constantly back up your points with dar.. and calling the guardian useless is not exactly correct .. here is the guarding article about tata.. where is the british media flaws you were talking about? Here’s good news reported legitimately: http://www.guardian.co.uk/business/2009/nov/27/jaguar-land-rover-profits
goodnight o to9al besalama..
Ok you seem like you don’t want to understand what I’m saying, ill try to keep this short since I’m doing through my phone, I had to reply.
1.Logical strategic partnership, in the general sense that they’re both CAR companies, both use tyres and both use a platform etc.. Trying to explain the general sense of logic but seems like my messages are not interpreted properly.
2.Well I have the support but when the CEO of Aston Martin tells you in the AM design studio nothing leaves this room, you don’t talk about it, you don’t think about it, you forget it.. You don’t exactly go and write it on a comment board of a blog.
3.If increasing your sales of points and entering booming regions like India, Russia, China, and others that had no AM presence before is not called “expansion” in your lovely business logic, then god knows what expansion is.
4.Are you serious? Were talking about the “Aston Martin deal, and what Inv. Dar is doing with it) you put up a link talking about Dars credit trouble which was NOT in any way caused by the Aston Purchase, since debt is not on Dar, and not in any way affected Aston since they have their own cash flow and budget. Please analyze shway connect the dots ull get it sooner or later. And your guardian link, you make me laugh, honestly. First of all, one article (if it was actuallt infavor of tata a9lan) does not mean anything. Thani shay lol, please go back and read the article. Its FACTUAL! They reported earnings, how much the cut costs and the results. I didn’t see a hint of positiveness in an opinionated comment throughout the article. The guardian cannot, my friend, report that jaguar made a loss when it actually made a profit.
Lol bs tikfa what are you doing plz get me because I won’t stop because I know I’m right. Cocky eh?
Yala, isalmik.
Points of sales**
1- okay .. i know they’re both car companies.. lets take the example of chase taking over wa mu.. if chase did not convert all the wa mu branches instantly like they did.. I can’t argue that it was a strategic partnership.. I know what a logical strategic partnership is .. at the moment VW and porsche’s partnership is not being utilized therefore my example is still valid..
2- if CEO of Aston Martin said nothing leaves the room .. how do you know he said nothing leaves the room? and I don’t care what the CEO of Aston Martin says in the that meeting .. but when people stop buying aston martins .. because there is no demand since people don’t have money to buy luxury cars in this recession .. DEMAND .. I’m sorry but that is not in the hands of the CEO
3- my lovely logic in business does not understand why companies expand in india china and russia, I mean out of all the population only 5% have the capability of purchasing the car? and how would you know if they don’t go with their other luxury choices? and when a company expands yet manages to cut 1/3 of their jobs in a recession that doesn’t click my mind ..
4- cutting 600 jobs doesn’t seem factual to you? wait wait “The company said late last year it was seeking to borrow $1bn (£630m) to refinance, and had appointed Credit Suisse as an adviser in the restructuring process.” how about this? “The company cut 600 jobs, one-third of its workforce, at its plant at Graydon in Warwickshire in December. The factory has also suffered temporary closures.” not factual?
if its not .. aston can by law sue the guardian ..
I’m doing this because out of one sentence you typed a whole essay.. Ali Q was just saying a sentence out of thought.. he didn’t attack anybody.. when he said Aston Martin and Kuwait.. he just used an example.. and obviously you’re taking this way too personal for some reason and I don’t know why..
Wow. Ok. So this is what was happening while I was on my way back to Kuwait. Sweeet.
Ok first of all. I don’t like the Aston Martin investment idea. Never have and never will; although I do love the car very much. It’s a sexy machine. Anyway back to the subject. I never like the plan but I didn’t mention it. I didn’t say it was a bad idea on Dar’s side. However, I have dealt with this kind of problem before and I can sum everything that was said in this comment/chat/wall thing that went on here. Whatever I say in my posts is my opinion and nothing but that. Whether or not you like it or not, it is still my opinion and I’ll stand by it. People have to express opinions in this world.
Believe me, I’m not a mean person and I’m not being mean. I stand strongly on my opinions. And you should too, Saoud. You like the idea, I don’t. Just like some people love Gossip Girl and I don’t.
** I did imply it in my post that I didn’t like it.