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FCAU - Fiat Chrysler Automobiles


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What is price target for the majority of you guys? Stock has run up nicely - are you buyers or sellers at this point?

 

I am waiting for $20 minimum to even consider selling.

Their margin is still lower than other auto makers. They may have a chance to improve the margin and deliver a better EBITDA.

My current $20 target is based on margin not improving and Alfa Romeo unable to succeed scenario. :)

But it also depends on what other investment opportunities I can find.

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For an off-topic question, has anyone looked into Toyota ?

 

I think it was Buffet or Klarman who told a story of how they invested, by calling up multiple companies and asking them who their best competitor is and a common answer typically emerges. I've been watching some interviews with Marchionne and he has mentioned Toyota multiple times....TM as one of the best, FIAT stealing certain approaches from TM, TM as very efficient with standards (story about the horn - TM has one horn for all models. If a designer wants to change the horn for one model, they would have to go through the TM CEO. Fiat has too many horn types which is inefficient. American autos are even worse)

 

It's at a PE or 13, forward estimated PE of 10. It also has one big potential headwind that other automakers do not. 50% of production is exported from Japan. If you believe Abenomics will continue, this gives TM an edge.

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