FCAU - Fiat Chrysler Automobiles

[LC]

It's a fair point. The main difference I see is in the revenue line. Automakers have a bit of a tailwind behind them (fiat is no exception if we look at Chrysler sales) whereas Sears has no such tailwind. I also think marchionne's plan to increase revenue (more Ferrari, Maserati, jeep in china) is more feasible than shop your way.

 

I could be wrong, since I don't know the SHLD-case that well, but isn't the main difference that the value creation in FCA isn't based on selling extremely illiquid assets? But instead, as you point out: on normalised earning power aided by a positive macro outlook, good management and price?

 

Absolutely, although I wouldn't say the Sears RE is extremely illiquid. I look at SHLD as a real estate company with Eddie playing retailer at the helm. I.e. McDonalds without the strong retail operations.

[gokou3]

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Would they be added to the S&P500 quickly?  Based on only market cap, it's eligible.  However, insiders hold a large position and it will be dual-listed so the float-adjusted cap may make it not so..

[peter1234]

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Would they be added to the S&P500 quickly?  Based on only market cap, it's eligible.  However, insiders hold a large position and it will be dual-listed so the float-adjusted cap may make it not so..

 

Do they need to see liquidity first?

 

European domicile should still qualify as long as it is perceived as a US company?

 

::)

[Phaceliacapital]

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Hard to say. Sergio said he will NOT do a roadshow like other companies.

This reminds me of the outsiders. :)

 

To be fair, he does not do a roadshow because nothing fundamental has changed since their investor presentation in May.

[compounding]

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Would they be added to the S&P500 quickly?  Based on only market cap, it's eligible.  However, insiders hold a large position and it will be dual-listed so the float-adjusted cap may make it not so..

 

Fear not fellow forum members, I will check with my local tarot lady tomorrow. Last time we spoke she was fairly positive on the possibility of price appreciation in the coming five year period, but unclear about the following months. I think this time is different.

[merkhet]

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Would they be added to the S&P500 quickly?  Based on only market cap, it's eligible.  However, insiders hold a large position and it will be dual-listed so the float-adjusted cap may make it not so..

 

Fear not fellow forum members, I will check with my local tarot lady tomorrow. Last time we spoke she was fairly positive on the possibility of price appreciation in the coming five year period, but unclear about the following months. I think this time is different.

 

+1

[karthikpm]

Ha !  ;) .. Your Tarot lady is a prescient value investor 

 

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Would they be added to the S&P500 quickly?  Based on only market cap, it's eligible.  However, insiders hold a large position and it will be dual-listed so the float-adjusted cap may make it not so..

 

Fear not fellow forum members, I will check with my local tarot lady tomorrow. Last time we spoke she was fairly positive on the possibility of price appreciation in the coming five year period, but unclear about the following months. I think this time is different.

[gokou3]

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Would they be added to the S&P500 quickly?  Based on only market cap, it's eligible.  However, insiders hold a large position and it will be dual-listed so the float-adjusted cap may make it not so..

 

Fear not fellow forum members, I will check with my local tarot lady tomorrow. Last time we spoke she was fairly positive on the possibility of price appreciation in the coming five year period, but unclear about the following months. I think this time is different.

 

It was really just a question of eligibility criteria and review process/timeline for inclusion into the S&P500, not about pricing action.  Don't need a tarot lady for that

[sleepydragon]

Can a company be added to S&P500 if it's tax domicile is not US? I remembered there's this rule before, but not sure if they changed it.

Also, when FIATY will be converted to the new symbol? I think it depends on the ADR provider? Could be a long time, or even never?

[muscleman]

Any predictions on how FIATY will do once listed this Oct 13th?  Hopefully better than CNHI

 

Hard to say. Sergio said he will NOT do a roadshow like other companies.

This reminds me of the outsiders. :)

 

To be fair, he does not do a roadshow because nothing fundamental has changed since their investor presentation in May.

 

That's true, but a lot of CEOs would want to do whatever they can to pump up the stock price. Sergio could say in the road show that you see, our 5 year target is not trusted by anyone, but so far we managed to stick to it and we have really well execution. Then he could go as far as showing the SOTP valuation that a lot of other CEOs would repeatedly show.

 

Just check what Sand Ridge's CEO (prior one, Tom Ward) repeatedly show in the presentation how much his company is worth per share, and you get an idea. :)

[sleepydragon]

Warren Buffet is clearly very bullish in auto as well.

[peter1234]

Warren Buffet is clearly very bullish in auto as well.

 

Agreed, he just bought himself a new Cadillac.

 

Oh wait, he also bought the dealership.

 

And Ted put 15% of his portfolio into GM.

 

;)

[Phaceliacapital]

Fiat (OTCPK:FIATY) says its merger with Chrysler will be effective as of Oct. 12 after creditors had not opposed the merger and the amount of money to be paid to shareholders that chose to sell their shares had not exceeded the €500M cap set by the company.

Shares in the new holding Fiat Chrysler Automobiles will start trading on the NYSE on Oct. 13, under the symbol FCA.

[fareastwarriors]

Marchionne Says He’s ‘Done’ After 2018 Fiat Chrysler Plan

 

 

http://www.bloomberg.com/news/2014-10-08/marchionne-says-he-s-done-after-2018-fiat-chrysler-plan.html

[fareastwarriors]

Fiat Chrysler’s Marchionne Foresees Car Deals Creating New No. 1

 

 

http://www.bloomberg.com/news/2014-10-08/fiat-chrysler-s-marchionne-foresees-car-deals-creating-new-no-1.html

[peter1234]

He sets ambitious targets, he said, because aiming lower would be “to establish mediocrity as a benchmark of the house.

 

If you dream of peanuts, you get monkeys.”

 

http://www.bloomberg.com/news/2014-10-08/marchionne-rebuilding-fiat-chrysler-at-200-mph.html

[Phaceliacapital]

Yes, great article.

[phil_Buffett]

He sets ambitious targets, he said, because aiming lower would be to establish mediocrity as a benchmark of the house.

 

If you dream of peanuts, you get monkeys.

 

http://www.bloomberg.com/news/2014-10-08/marchionne-rebuilding-fiat-chrysler-at-200-mph.html

 

great  article!! thanks!

[ZenaidaMacroura]

6:00 am Fiat SpA has determined not to exercise its right to offer on the market the residual shares with respect to which cash exit rights were exercised (FIATY) : Co announced the results of the preemptive offer to Fiat shareholders of the shares with respect to which cash exit rights were exercised in connection with the pending merger of Fiat with and into Fiat Investments NV (to be renamed Fiat Chrysler Automobiles N.V., "FCA").

 

At completion of the offer period, Fiat shareholders had elected to purchase 6,085,630 shares of the total of 60,002,027 shares with respect to which cash exit rights were exercised.

Fiat has determined not to exercise its right to offer on the market the residual shares with respect to which cash exit rights were exercised and therefore, subject to the merger becoming effective, the purchased shares will be delivered to purchasing shareholders against payment of the cash exit price on the settlement date

[muscleman]

6:00 am Fiat SpA has determined not to exercise its right to offer on the market the residual shares with respect to which cash exit rights were exercised (FIATY) : Co announced the results of the preemptive offer to Fiat shareholders of the shares with respect to which cash exit rights were exercised in connection with the pending merger of Fiat with and into Fiat Investments NV (to be renamed Fiat Chrysler Automobiles N.V., "FCA").

 

At completion of the offer period, Fiat shareholders had elected to purchase 6,085,630 shares of the total of 60,002,027 shares with respect to which cash exit rights were exercised.

Fiat has determined not to exercise its right to offer on the market the residual shares with respect to which cash exit rights were exercised and therefore, subject to the merger becoming effective, the purchased shares will be delivered to purchasing shareholders against payment of the cash exit price on the settlement date

 

Hmm... Who bought these shares? Why would existing shareholders buy these shares at that high price than just buying on the open market?

[LC]

Am I understanding correctly that

 

60mm shares were sold.

6mm shares were purchased by shareholders

54mm shares were purchased by Fiat

 

So is this like a buyback of 54mm shares?

[peter1234]

Am I understanding correctly that

 

60mm shares were sold.

6mm shares were purchased by shareholders

54mm shares were purchased by Fiat

 

So is this like a buyback of 54mm shares?

 

I think this is about right.

 

The plan seems to be to sell these 54M treasury shares after/with the IPO rather than cancel.

 

http://www.reuters.com/article/2014/10/09/fiat-spa-exitrights-idUSL6N0S40OR20141009

[TwoCitiesCapital]

6:00 am Fiat SpA has determined not to exercise its right to offer on the market the residual shares with respect to which cash exit rights were exercised (FIATY) : Co announced the results of the preemptive offer to Fiat shareholders of the shares with respect to which cash exit rights were exercised in connection with the pending merger of Fiat with and into Fiat Investments NV (to be renamed Fiat Chrysler Automobiles N.V., "FCA").

 

At completion of the offer period, Fiat shareholders had elected to purchase 6,085,630 shares of the total of 60,002,027 shares with respect to which cash exit rights were exercised.

Fiat has determined not to exercise its right to offer on the market the residual shares with respect to which cash exit rights were exercised and therefore, subject to the merger becoming effective, the purchased shares will be delivered to purchasing shareholders against payment of the cash exit price on the settlement date

 

Hmm... Who bought these shares? Why would existing shareholders buy these shares at that high price than just buying on the open market?

 

Because it was only a few days ago that the prices were pretty close to one another and institutional investors have deadlines to instruct custodian/prime broker actions. Chances are, when they instructed the action to exercise they thought they were getting a deal.

[TwoCitiesCapital]

Also, I'm excited. This is a 4.3% repurchase at really attractive prices and the stock is still dropping in the news. I'm looking to add once I've taken a deeper look to get comfortable with debt levels.

[widenthemoat]

Also, I'm excited. This is a 4.3% repurchase at really attractive prices and the stock is still dropping in the news. I'm looking to add once I've taken a deeper look to get comfortable with debt levels.

 

"We will sell the equivalent of those shares on Wall Street," Marchionne said at the Paris auto show last week.

 

Wouldn't this quote by Serge from the Reuters article suggest that the 4.3% repurchase will be somewhat irrelevant since they are going to just reissue the same amount of shares at what I would assume would be a similar price?