Ferrari IPO

Brian in VA · 10-12-2015, 04:14 PM

Thoughts? Anybody going to be buying? Is it going to destroy the co?

onewhippedpuppy · 10-12-2015, 04:28 PM

Should be interesting to see how they do as a standalone, especially regarding fuel economy. Previously under Fiat they were sheltered by the econoboxes.

Gogar · 10-12-2015, 05:28 PM

Absolutely no way I'd touch it. Except to short it.

This investing tip brought to you by my undergraduate degree in music.

RANDY P · RANDY P's Garage

corporate performance influence is gonna ruin 'em.

rjp

Bill Douglas · 10-12-2015, 10:59 PM

Watch whatever I do, and do the opposite.

I'm a champion at losing money.

.

Porsche-O-Phile · Porsche-O-Phile's Garage

Quote:

Originally Posted by RANDY P

corporate performance influence is gonna ruin 'em.

rjp

Have to agree. Sad, this is the beginning of the end for them I think. The corporate mindset is going to kill the company.

JJ 911SC · JJ 911SC's Garage

Quote:

Originally Posted by Porsche-O-Phile

Have to agree. Sad, this is the beginning of the end for them I think. The corporate mindset is going to kill the company.

Greed from "investor" will destroy them...

Public company that make money see their share going down because they did not meet Wallstreet expectation while the one that are bleeding red and laying off thousands see theirs going up

cashflyer · 05:04 AM

Quote:

Originally Posted by afterburn 549

With Fiat involved, what could go wrong? LOL

Fiat has been a majority shareholder since 1969, when it acquired 50% of Ferrari ownership. In 1988, they expanded the ownership stake to 90%. The remaining 10% is retained by family member Piero Ferrari.

I would say that Ferrari has done pretty well under Fiat, since Ferrari is rated as the world's most powerful brand name by Brand Finance.

But now that Fiat wants to make the company public.... well, IMO, that is the death knell for Ferrari as we know it.

Pre-IPO Ferrari cars will continue to gain collector value.
Post-IPO Ferrari cars will be designed by committee, built with Detroit methodology*, and expected to pay dividends to stockholders. You will see the creation of the "family Ferrari", the "Ferrari SUV", and the "entry level economy Ferrari". The brand will be mass market, it will be diluted, and no longer be exclusive.

* edit: scratch that bit about "Detroit methodology". The shareholders will want the product to be profitable, not some crapbox throw-away POS. So they will probably use the Toyota methodology.

sc_rufctr · 10-13-2015, 06:22 AM

Times change. I wouldn't worry about this too much.

And I could think of worse companies to invest in.

RANDY P · RANDY P's Garage

Ferrari FWD SUV with FB interface in beige coming up!

MrAlien · 10-13-2015, 07:35 AM

They are a profitable company, they have a waiting list to buy their cars, not unlike Tesla which I have invested in... Brand recognition, they put their logo on just about everything and it sells... whats not to like? the IPO is only 10% of the company, and based on price and their current earnings, its hard to expect this stock to move on anything more then just speculation. Though I think the novelty of owning a piece of Ferrari is enough to raise the billion dollars they are after.

intakexhaust · intakexhaust's Garage

F1 is in their veins. Curious how or if this will affect them.

cashflyer · 10-13-2015, 08:30 AM

Quote:

Originally Posted by MrAlien

The IPO is only 10% of the company

Only 10% will be offered to the public in the IPO.
The other 80% will be distributed to current holders of FCA stock.

Brian in VA · 10-13-2015, 03:00 PM

Yeah can't see how they won't begin making huge ugly SUVs for the asian market like everyone else (ahem, Bentley). I saw that new abomination from MB today, even worse looking than in photos.

When I read the details of this I feel like I'm missing something. Its all "only 10%", "exclusive stock" , best brand ever etc, so why are they doing this?

stealthn · 10-13-2015, 05:07 PM

It would be a stupid move...

Take it from Dell being private is the way to go.

sc_rufctr · 10-13-2015, 10:07 PM

Quote:

Originally Posted by Brian in VA

Yeah can't see how they won't begin making huge ugly SUVs for the asian market like everyone else (ahem, Bentley). I saw that new abomination from MB today, even worse looking than in photos.

When I read the details of this I feel like I'm missing something. Its all "only 10%", "exclusive stock" , best brand ever etc, so why are they doing this?

"Oh,"

slodave · slodave's Garage

Quote:

Originally Posted by cashflyer

Only 10% will be offered to the public in the IPO.
The other 80% will be distributed to current holders of FCA stock.

Yup, buying IPO is almost impossible for the average Joe. Best one can do is be on top of it, buy in just after the initial IPO and hopefully ride the coat tails up.