karthikpm Posted January 29, 2014 Share Posted January 29, 2014 Their announcement says it will be a 1:1 conversion for the common share. Link to comment Share on other sites More sharing options...
racemize Posted January 29, 2014 Share Posted January 29, 2014 Their announcement says it will be a 1:1 conversion for the common share. Ah, must have missed that part, thanks very much! Link to comment Share on other sites More sharing options...
phil_Buffett Posted January 29, 2014 Share Posted January 29, 2014 http://www.4-traders.com/FIAT-SPA-69342/news/Fiat-SpA--Chrysler-CEO-seeks-US-listing-for-merged-group-as-of-October-1-17852048/ Link to comment Share on other sites More sharing options...
muscleman Posted January 29, 2014 Share Posted January 29, 2014 http://www.twst.com/update/37743-fiat-spa-reorganizes-after-completion-of-the-purchase-of-chrysler-group-llc "In order to foster the development and continued involvement of a core base of long- term shareholders, FCA will adopt a loyalty voting structure, under which Fiat shareholders who are present or represented by proxy at the Fiat shareholder meeting called to vote on the proposal and who continue to hold their shares until the closing, regardless of how they vote, are eligible to receive special voting shares equivalent in number to the newly-issued FCA common shares they receive." What the fuck does this mean? I bought their shares early last year, and I bought more last December. I have never voted in the proxy. Does this mean someone else who have voted in the proxy will receive the special voting shares but I will not? Is this a form of dilution? :o "After the closing, shareholders who hold their FCA common shares for at least three years would also be entitled to participate in the loyalty voting structure. FCA shareholders will be eligible for loyalty voting until they transfer their common shares." Does this mean if we hold our shares for 3 years, we will receive the special voting share? Does that also trade in the stock exchange and have some value to sell? ::) It sounds like if the share is sold, the special voting share will be forfeited, so probably this mean the speial voting share will not trade in the NYSE and will not have value? Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 29, 2014 Share Posted January 29, 2014 Fiat Cuts 2014 Profit Target as Carmaker Plans NY Listing http://www.bloomberg.com/news/2014-01-29/fiat-s-fourth-quarter-profit-misses-estimates-on-latin-america.html Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 29, 2014 Share Posted January 29, 2014 Fiat Scraps Dividend After Chrysler Buy http://online.wsj.com/news/articles/SB10001424052702303973704579350251966278792 Link to comment Share on other sites More sharing options...
phil_Buffett Posted January 29, 2014 Share Posted January 29, 2014 Fiat Scraps Dividend After Chrysler Buy http://online.wsj.com/news/articles/SB10001424052702303973704579350251966278792 good step. they should save all Money and put in the new Company, new products and so on. when they make the right steps they can intiate the dividend in 1-2years again Link to comment Share on other sites More sharing options...
Lazarus Long Posted January 29, 2014 Share Posted January 29, 2014 What the fuck does this mean? I bought their shares early last year, and I bought more last December. I have never voted in the proxy. Does this mean someone else who have voted in the proxy will receive the special voting shares but I will not? Is this a form of dilution? :o I don't think the issuance of the special voting shares will be dilutive. Fiat Industrial did something similar: see http://www.sec.gov/Archives/edgar/data/1024519/000119312513283773/d564825d425.htm. In Fiat Industrial's case, the special voting shares had "only minimal economic entitlements" that Fiat Industrial said were "immaterial for investors." Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 29, 2014 Share Posted January 29, 2014 Fiat Chrysler’s Problems – Scale and Scope http://blogs.wsj.com/moneybeat/2014/01/29/fiat-chryslers-problems-scale-and-scope/ Link to comment Share on other sites More sharing options...
racemize Posted January 29, 2014 Share Posted January 29, 2014 Fiat Chrysler’s Problems – Scale and Scope http://blogs.wsj.com/moneybeat/2014/01/29/fiat-chryslers-problems-scale-and-scope/ Does the author have no concept of profit? Who cares if they sell less cars if they make a bunch of money from the premium ones... Link to comment Share on other sites More sharing options...
Guest valueInv Posted January 29, 2014 Share Posted January 29, 2014 Fiat Chrysler’s Problems – Scale and Scope http://blogs.wsj.com/moneybeat/2014/01/29/fiat-chryslers-problems-scale-and-scope/ Does the author have no concept of profit? Who cares if they sell less cars if they make a bunch of money from the premium ones... Hmmm....that sounds familiar...... Link to comment Share on other sites More sharing options...
txlaw Posted January 29, 2014 Share Posted January 29, 2014 Letter to the troops: http://www.autonews.com/article/20140129/OEM02/140129758/marchionne-letter-to-chrysler-employees Link to comment Share on other sites More sharing options...
Grenville Posted January 29, 2014 Share Posted January 29, 2014 Letter to the troops: http://www.autonews.com/article/20140129/OEM02/140129758/marchionne-letter-to-chrysler-employees Thanks for posting! I also thought this letter in the FIAT releases from today was very good and covered a number of things: http://www.fiatspa.com/en-US/media_center/FiatDocuments/2014/Gennaio/Fiat_S_p_A_reorganizes_after_completion_of_the_purchase_of_Chrysler_Group_LLC.pdf Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 29, 2014 Share Posted January 29, 2014 Fiat / Chrysler: ease off brakes slowly Globalisation is very convenient. Fiat, now outright owner of US-based automaker Chrysler, is taking full advantage as it restructures the merged group. The tax residence shifts to the UK; nation of incorporation, to the Netherlands; the main share listing, to New York. For all the pledges about local jobs, it is tough luck, Turin. Investors, like management, should be satisfied, but not overly excited. Wednesday’s earnings were a sharp reminder that securing the buyout of the Chrysler minority is just one step in tackling Fiat’s problems. The automaker’s €3.4bn trading profit in 2013 was essentially flat, year on year, at constant exchange rates – and in the last three months, disappointingly short of the market’s consensus estimates. Problems, of course, are mainly on the Fiat side: without Chrysler, its 2013 net loss would have been 15 per cent higher, at more than €900m. A good part of this reflects weakness in Latin America, where group earnings before tax and interest more than halved last year. Fiat’s mass-market brands continued to suffer in Europe, too. These trends look likely to hold back the pace of recovery: Fiat is now guiding to €3.6bn-€4bn trading profit in 2014. The market had been hoping for more than €4.1bn. All that said, the balance sheet could have been worse. Industrial net debt ended the year at €6.6bn and is expected to be about €10bn at end-2014 (after the Chrysler deal). That is about €1bn less than many investors feared. Even so, if Latin America remains weak, demand in southern Europe stays sluggish and capital spending fairly high, the capital structure may need to be addressed. Fiat boss Sergio Marchionne denies plans for a rights issue and hints vaguely at more creative options. But until the road ahead becomes clearer on all these fronts, investors may want to release the brakes only slowly. http://www.ft.com/intl/cms/s/3/8925431e-88eb-11e3-bb5f-00144feab7de.html?siteedition=intl#axzz2rWwocgZN Link to comment Share on other sites More sharing options...
ZenaidaMacroura Posted January 29, 2014 Share Posted January 29, 2014 Their announcement says it will be a 1:1 conversion for the common share. Can you link the release? I presume this will happen automatically- does this event book ADR profits (incur cap gain tax)? Link to comment Share on other sites More sharing options...
jch548 Posted January 29, 2014 Share Posted January 29, 2014 I sold my shares today. Didn't like the profit guidance and the market is looking a bit sick. Needed to built up more cash incase things get cheaper. With the profit hit the cash burn will be worse for Fiat. It could be they won't be cash flow positive for a few years. I'm just going to watch this one for now. Link to comment Share on other sites More sharing options...
karthikpm Posted January 30, 2014 Share Posted January 30, 2014 http://www.fiatspa.com/en-US/investor_relations/investors/risultati_trimestrali/FiatDocuments/2013/Q4_FY_2013_Results.pdf Slide deck has the details.. Slide no 4 has details of the re-org plan.. Link to comment Share on other sites More sharing options...
txlaw Posted January 30, 2014 Share Posted January 30, 2014 http://www.bloomberg.com/news/2014-01-29/maserati-boom-signals-fiat-arrivederci-to-italian-past.html Link to comment Share on other sites More sharing options...
Grenville Posted January 30, 2014 Share Posted January 30, 2014 Good interview with John Elkann in La Stampa today. It's in Italian. http://www.lastampa.it/2014/01/30/economia/elkann-per-lauto-futuro-pi-solido-io-resto-qui-al-lingotto-71JW468miwjDOuhTepvm3N/pagina.html Link to comment Share on other sites More sharing options...
txlaw Posted January 30, 2014 Share Posted January 30, 2014 Good interview with John Elkann in La Stampa today. It's in Italian. http://www.lastampa.it/2014/01/30/economia/elkann-per-lauto-futuro-pi-solido-io-resto-qui-al-lingotto-71JW468miwjDOuhTepvm3N/pagina.html Do you understand Italian or did you just use Google Translate? Link to comment Share on other sites More sharing options...
Grenville Posted January 30, 2014 Share Posted January 30, 2014 Good interview with John Elkann in La Stampa today. It's in Italian. http://www.lastampa.it/2014/01/30/economia/elkann-per-lauto-futuro-pi-solido-io-resto-qui-al-lingotto-71JW468miwjDOuhTepvm3N/pagina.html Do you understand Italian or did you just use Google Translate? I wish...used google translate, haha... Link to comment Share on other sites More sharing options...
MYDemaray Posted January 30, 2014 Share Posted January 30, 2014 From the La Stampa article as a sort of rebuttal to the WSJ piece: Q: But are conceivable new business alliance to increase the volume? Elkann: "The volume as such are not sufficient on its own, so much so that General Motors, despite being the largest car manufacturer in the world, then went bankrupt in 2009. But it is also true that, if it is well managed, have more than one volume is a definite advantage. " ...he gets it Link to comment Share on other sites More sharing options...
bmichaud Posted January 30, 2014 Share Posted January 30, 2014 Stating the obvious I know, but Marchionne is just phenomenal. I loved this quote on page 31 of the transcript: I think the next step in fixing Europe is utilization of the industrial network to produce something other than mass market bound cars. We’ve been clear on this issue, we do not see a future for the continuation of this industrial framework to try and satisfy demand in a market which is over-serviced. And so we’re slowly moving our production assets towards that end. You’ve seen from the margins that we’ve been able to extract out of Maserati as to what is potentially doable if these assets are utilized for the right brand for global distribution. I think you need to give us time to continue to develop the rest of our network on that basis. I think at completion of the plan, we will be more than in positive territory. But it’s not going to come from the traditional application of the traditional brands in the European market. It just won’t happen. And I continue to be incredibly negative about the possibility of this market effectively coming back in and producing margins that allow anyone to recover the capital costs associated with the investments. So we had to get out of the sandbox. We’ve had this discussion before. And I’m as convinced now as I’ve ever been about the fact that our strategic direction is correct. But it’s not going to happen out of selling mass market cars, I can tell you, it won’t happen. There’s not enough margin left in the business to try and get that done. Huge margin potential out of Chrysler too. 2013 MOP was 4.44% of revenue. After net interest expense of 994 and a 40% tax rate, net income is 1,223, or 1.08 per Fiat share. At 8.33X, Chrysler is worth $9 per Fiat share. GM's North American goal is 10% EBIT margin....at a 7% MOP margin, Chrysler's EPS rises to 1.98, and is worth $16.53 at the same multiple, or $19.85 at 10X. Sooo much potential here. Fiat_4Q13_Transcript.pdfChrysler_4Q13_Presentation.pdf Link to comment Share on other sites More sharing options...
yadayada Posted January 31, 2014 Share Posted January 31, 2014 total net income was 2.1 billion in 2013 right? of chrysler and fiat consolidated? Link to comment Share on other sites More sharing options...
investor-man Posted February 3, 2014 Share Posted February 3, 2014 Not such a great Maserati commercial during the Super Bowl Link to comment Share on other sites More sharing options...
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