+ Watch FIATY
on My Watchlist
Surging sales of its Jeep line... at a time when many automakers are just doing ok in the U.S. market. Could be a big year for this company.
The thesis here is that Fiat is a misunderstood company.They now own 100% of Chrysler, but people seem to think they are an uncompetitive auto major like Peugeot/Citroen.The reality is Chrysler has a 2013 earnings power of 1.8 bln Euro. This result is currently dragged down by the fact that the rest of Fiat is losing about 1 bln Euro. However Fiat can (now that a Chrysler IPO is off the table) plan a global production network which is independent from Italy where conditions for employers are unfavourable (laws/unions). This will reduce costs and improve economies of scale. Their brands are still strong (including Maserati and Ferrari) and Chrysler gives them exposure the economic recovery of the US.The bottom line is: It doesnt take much. When Fiat breaks even and Chrysler grows a little bit over the next couple of years you have a company that earns more than 2 bln Euro which right now has a market cap of 8.5 bln Euro.
FIAT's return to the US a couple of years ago may not have sparked a huge increase in prices for the stock, but with the addition of multiple new models over the coming years, offering economic European motoring, FIAT stands a chance to capitalize on its return to the states.
Real chance for a 2-4 bagger. Priced very low because Italian based and given general European malaise. As that difficult situation clears, will gain there + benefit from Chrysler, Jeep ownership in the US + positions in growth markets like Brazil and Poland.
Well Jim Cramer says do not buy European stocks, well Fiat is European. The thing Jim Cramer forgot to mention though is many great European stocks have plenty of exposure to the USA. For example take Fiat which owns 60% of Chrysler and Dodge which will soon be 100%. Fiat has some great american cars in its range including Jeep, Dodge viper and others. Well if things do improve in the USA then this will only help Fiat and other European companies which have exposure to the USA.
The Stock is trading at well below book value, most likely due to uncertainty with the potential European financial situation. That said, FIAT has increased its revenues over the last year and is operating in many other foreign countries(including, now, the US in a substantial capacity). This stock just looks absolutely cheap right now, despite the increased risks associated with it.
There are currently 7000 F:IM shares in my "fund" with break-even (ignoring the FI:IM spin-off) of around 6.85 EUR. http://caps.fool.com/Blogs/fund-trades/678775. http://www.bloomberg.com/apps/quote?ticker=F:IM.
The trend is towards fuel efficient vehicles and Fiat is a major player in this field.
It is a strong company, and it will manage to stay afloat as long as it doesn't take too much of Chrysler.
major auto manufacturers
Fiat has their hand in a lot of areas of the market from compacts to exotics. GM's new small car engine was a joint venture with Fiat and has proven itself worthy
Good management in Sergio Marchionne. 500 is ready to succeed.
Much advertising around new Cinquecento. Many little investors entering in the short run.
This one looks like it's in a stall pattern but may actually be settling. The company itself is doing well and appears to be solid. It's worth a consideration for long term commitment.
Fiat was one of the first companies I ever invested in. They basically owned all of Italy for a while, and they still have interests in just about every area you can think of, which is a big reason they're one of my favorite companies. Fine supercars like Maserati and Ferrari are just a small part of their business, but they seem to be one of the most visible. Most of their money is made in regular autos (like all the little cars and trucks you see zipping around europe and south america) and big industry (construction, agricultural, commercial trucking). They're involved in machine and software production on some level too, mostly things for the automotive industry.Fiat is a great company, and they going to keep growing; they're the ones making the cars and the industry machines for the rest of the world.
Fiat S.p.A. (Fiat), one of the largest industrial groups in Italy, has been famous world over for its Ferrari and Maserati line of vehicles. It is the parent company, that through its subsidiaries is primarily involved in the business of manufacturing and selling automobiles, commercial vehicles, and agricultural and construction equipments. The company’s operations are segregated in five key business areas: Automobiles; Agricultural and Construction Equipment; Trucks and Commercial Vehicles; Components and Production Systems; and Other Businesses. The Automobiles segment that includes revenues from sale of Fiat Auto, Ferrari, and Fiat Powertrain Technologies generates the major chunk of the inflows, contributing about 45% of the over all revenues.The company witnessed a healthy performance in 2006, with revenues up 11.3% as a result of strong performance of Fiat Auto, which sold around 2 million cars in the year. Though non recurring expenses resulted in company registering a net loss, excluding those non recurring expenses, Fiat’s bottom line actually registered a profit growth. The company’s ADR has seen a phenomenal upsurge, rising by over 30% since Jan 2007. Moreover looking at the company’s fundamentals and reasonable valuations there can be further room to growth.Looking ahead in 2007, the sale of newly launched Bravo will be the key driver for the company, as its rapid start is expected to continue for the rest of the year amidst of strong demand. Moreover, the pre schedule launch of the much awaited new version of Fiat 500 will provide fuel to fire, setting the revenue tally much higher. The agriculture equipment segment also appears to present a solid performance, amidst of rising corn prices and strong demand for agriculture products in Europe. Further, considering companies projected increase in production of Ferrari and Fiat 500 cars amidst of strong demand in new markets like China, the Arab Emirates, Mexico and Brazil, will aid the company to deliver a solid 2007, making Fiat a solid investment.
well situated in the UK and Ireland. They have the edge on Ford and Citroen, and Rennault. Reliability will be the key to the market there.
Lots of hype, lots of potential!!!!
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