Starting today, Ferrari shares will start trading today. There being sold at $52 a share. Some experts believe that the share prices might shoot up to $65 or more but they ask investors to be cautious because it's as yet to early to tell which direction Ferrari stocks will head. Anyone here interested in owning a part of Ferrari?
Ferrari wouldn't be something I'm interested in to be honest. While there's no doubt about the exclusivity of the brand, and the price will probably stay high, high end and high performance vehicles are somewhat a niche market and it wouldn't take much for the prices to become unstable in my opinion. I'd be open to somebody buying me one of their actual vehicles of course!
I must admit that it is very tempting to invest but I think I will play safe and steer clear but observe what happens with them. With all this emissions thing at the moment it seems to be having a small effect on the whole motor market and it's not too easy to predict where this stock will go.
And that's one of the reasons I'm saying that Ferrari are a niche market. While I don't think what's going on at the moment with the emissions will affect them, I do think that it will only take one piece of legislation aimed directly at the suoercar industry to have a negative effect on their share price.
Owning a piece of Ferrari would be something tempting, at the same time the shares are not very cheap, so nothing like waiting and seeing what will happen.
A lot of hype over very little. Don't get sucked into this play. The issue is only 10% of the company. The overhang of another 80% of the shares being offered to the public circa January 2016 will undoubtedly affect share value. Look at this morning's CNBC Squawk on the Street discussion (assuming it is on the web site).A Bloomberg interview aired in the next hour. If you want to buy shares to say you own a piece of Ferrari, that's fine. If you expect to make money, I wouldn't even consider doing due diligence until after the 80% overhang comes to market.
I'd rather see it at $20 or less. I wouldn't even think about any sort of significant position for any length of time until the lockup expires in 3 months and you start to hopefully see some big selling off and perhaps a promising earnings report. Getting in to these things on opening day right out of the gate is almost always a sucker's play. The price it actually opens at is almost always hugely inflated, and generally much higher than where it "prices". It "priced" at $52, but opened at $60,and it closed at $55. And since there's no short selling or options for at least several days, it's often an invitation for a big selloff in a few days. I've talked here about how I played the Twitter IPO perfectly - I waited until the lockup expired, grabbed a little at ~ $30, and sold a few weeks later in the $53-54 range. I've also taken the opening day sucker bet a few times in the past on a few other IPO's - buying lightly into all of that volatility with a limit order and a stop sometime on opening day (usually early) with the intention of selling at a profit later in the day IF the stock continued to surge upward. Sometimes it works, but most of the time it doesn't - it usually sells off heavily at the open. Facebook is a perfect example of why you should not buy heavily on opening day, and probably not at all - even as a day trade with a stop. I sat and watched that one open at $46-47 after "pricing" at $38... I watched and waited as the heavy insider selling drove it down to the upper 30's - there was no lockup, and insiders were selling at the open. I thought wrongly that the underwriters would hold it up at $38, and took a small loss. Of course FB eventually fell below $20 before it turned around in the last couple of years and eventually got up to ~$100.
Yeah IPOs are a strange breed to mess around with. I tend to steer clear of them.. and did the same with this one. And in general I tend to stay away from companies producing expensive luxury goods as they have a pretty small market... that brings volatility in earnings and a lot of trouble if the economy decides to take a big downturn.
