Tag Archives: Automotive

Ferrari IPO

Ferrari S.p.a is an Italian luxury sports car founded by Enzo Ferrari in 1929. Ferrari road cars are generally seen as a symbol of speed, luxury and wealth. Fiat acquired 50% of the company in 1969, and expanded its stake to 85% in 2008. Earlier this year Fiat announced its intention to sell its share in Ferrari. Piero Ferrari have a 10% stake in the company, while Fiat Chrysler Automotives have 90%.

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(Picture: Ferrari Aurea spider)

Ferrari is a strong brand, and the famous symbol of the Ferrari racing team is the Cavallino Rampante (prancing horse) black prancing stallion on a yellow shield, usually with the letters S F (Scuderia Ferrari), with three stripes of green, white and red (the Italian national colors at the top).

Ferrari sold 7,318 units in 2012. The sale dropped down to 6,922 last year, and the revenue was €2,3 billion in 2013. Up 5% from 2012. The company is struggling and in an U.S IPO they hope to raise at least $1 billion.

They struggle to compete with other automakers in Europe and the U.S, and the competition is tough. Tesla have great success with their new electric car with good comfort, technology and over 700 horsepower. Ferrari is also seen as a luxury car with a great vehicle (V8 and V12), but they are struggling. Why?

When you ask people about Ferrari, they think racing cars and especially Formula One, and that is probably an image problem. Formel One and Racing cars is not something for you and me. It`s something for Schumacher. Some people love Formel One and racing cars, but the market is unfortunately not big enough?

Ferrari F430 Spider runs on ethanol, and that hybrid will be in production next year. LaFerrari was put into production this summer. It`s called HY-KERS Concept, and the hybrid system adds more than 100 horsepower on top of the 599 Fiorano`s 612 HP.

The company has produced a number of concept cars such as Ferrari P4/5 and Ferrari SP12 EC, which have been commissioned by wealthy owners. Other quite radical cars is Ferrari Mythos and Ferrari Modulo, but the most recent concept car was produced in 2010, which is Ferrari Millechili.

The special projects program is a collaboration by Ferrari with Italian automobile coachbuilders such as Fioravanti, Pininfarina, and Zagato to build custom cars using selected Ferrari modes as a structural base. The first car under this program is the SP1, commissioned by a Japanese business executive. The second is the P540 Supersfast Aperta, commissioned by an American enthusiast.

Ferrari`s former CEO and Chairman Luca de Montezemolo, resigned from the company after 23 years, and is to be succeeded by Sergio Marchionne, CEO and Chairman of Fiat Chrysler Automobiles, Ferrari`s parent company. Marchionne merged Fiat and Chrysler into the world`s seventh-largest carmaker to better compete with leaders such as General Motors, Volkswagen AG and Toyota Motor Corp.

On 29 October 2014, the FCA group, resulting from the merger between manufacturers Fiat and Chrysler, announced the split of its luxury brand, Ferrari. The aim is to turn Ferrari into an independent brand which 10% of stake will be sold in an IPO next year.

Fiat Chrysler`s brands include Jeep, Fiat, Maserati, Alfa Romeo, Chrysler and Dodge, which all strong brands. They sold about four million cars and trucks in 150 countries last year. Fiat Chrysler declared bankruptcy right after the financial crises in 2009.

Marchionne want to raise cash to cover its expenses and said that the company will spend money on R&D and capital expenditures. The stock rose after the IPO news and Marchionne has stated that he want to increase production to 10,000 cars a year. That`s music in investors ears.

Fiat is putting its jewel on the market.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Rolls Royce up 6% on buybacks

 

All the commodities are up today. Silver up +0,92%, Gold +0,76%, Copper +0,23% and Oil (brent) is up +0,31%. Nikkei is also up today, as it advanced +1,62%. ASX 200 is up +1,59%. Europe is in a green territory too. Stoxx 50 is up +1,11%, FTSE 100 is up +0,83%, CAC 40 +0,89% and DAX is up +0,78% to 10,008,17 points right now (13:14:00 CET).

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(Picture: Rolls Royce)

The crude oil price have never been so high this year and that`s because the conflict that is going on in Iraq right now. The Iraqi government forces battling Sunni militants for control of the country`s biggest refinery. The rally in Asia and the rest of the global stock market is because of the FOMC meeting yesterday.

The stocks rallied after the U.S Federral Reserve signaled that rising inflation won`t trigger an interest rate rise any time soon. investors liked it and sent the European bourses up sharply today. Asian equities posted strong gains, and S&P 500 rose to another record high yesterday.

The Fed Chair Janet Yellen slashed its 2014 growth forecast but expressed confidence that the economy will continue to recover steadily in the coming years, which could warrant a slightly more aggressive pace of interest rate hikes when they start.

That probably won`t be until the middle of next year, and Fed Char Janet Yellen dismissed the resent rise in inflation to its highest in over a year as «noise». Some people were speculating that the Fed would have to come up with a more hawkish commentary and obviously they have been disappointed.

But there were one loser yesterday after FOMC meeting yesterday; the dollar, which fell against major and emerging market currencies, in tandem with U.S Treasury yields, hitting a five-year low against sterling.

A big winner in the European stock market among the blue-chips was Rolls Roys RR.L. An auto car maker for the luxus market. The stock rose 6% after it announced a one billion pound ($1,69 billion) share buyback.

 

Reports today:

08:30 a.m EST Unemployment Claims

10:00 a.m EST Philly Fed Manufacturing Index

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

 

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