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Pre-Market Most Active for Dec 15, 2014 : OPK, PBR, NMR, TVIX, FCAU, XIV, BAC, IBN, AAPL, QQQ, PETM, ARCPat Nasdaq.com (Mon, 8:39AM)
Pre-Market Most Active for Dec 12, 2014 : FCAU, TVIX, XIV, CCXI, QQQ, ARMK, BAC, SMFG, INFY, GPRO, AAPL, LYGat Nasdaq.com (Dec 12, 2014)
Pre-Market Most Active for Dec 11, 2014 : FCAU, SPLS, ODP, TVIX, PBR, GPT, QQQ, KB, XIV, NLSN, HDS, GFIat Nasdaq.com (Dec 11, 2014)
at Nasdaq.com (Dec 10, 2014)
Pre-Market Most Active for Dec 10, 2014 : KB, FCAU, TVIX, GSK, BHP, AAPL, S, TMUS, FRAN, XIV, QQQ, AALat Nasdaq.com (Dec 10, 2014)
at CNBC.com (Dec 8, 2014)
at CNBC.com (Dec 4, 2014)
at Fox Business (Dec 3, 2014)
at CNBC.com (Dec 3, 2014)
at Zacks.com (Dec 3, 2014)
Why Fiat Chrysler Shares Fell Back To Earth In December
- Fiat Chrysler Automobiles FCAU priced an expected sale of 87 million common shares at $11 apiece, a 19.7% discount to the stock price on December 11.
- For a short time, an arbitrage opportunity exists to sell shares at the current higher price, and buy them back at a discount through the secondary offering.
- FCAU's $2.5B convertible bond offering triggered further selling as convertible arbitrageurs set up their initial delta hedges.
- Once these 2 offerings are allotted and sold, the selling will cease and the stock price will rise.
Sergio Marchionne Is The Reason To Back Fiat-Chrysler
- Fiat CEO has turned the company around with bold strategic moves.
- Marchionne interested in the long-term,not in what analysts want short-term.
- Ambitious 5-year plan is achievable.
- Chrysler Easily Out-Performing Ford and GM in North America.
- Talk of Possible Tie-Up with Volkswagen Would be an Exciting Development.
- Fiat is trying to push that its brand is stylish and hip, but it may have gone too far.
- Sales rose 18% in May and 17% since the beginning of the year, but the new ad campaign may cause a slowdown.
- Fiat's new ad campaign is courageous but very risky. Fiat should focus its marketing on its practicality and quantifiable facets instead of offending the senses.
- Fiat Chrysler Automobiles (FCA) presented recently its ambitious five-year strategic plan, aiming at strong growth and higher profitability during 2014-2018.
- Its targets are mainly dependent on major expansion of both the Jeep and Alfa Romeo brands, which are expected to post unit sales CAGR of 22% and 40%, respectively.
- No equity issuance is expected, net debt should be stable until 2016, and free cash flow should improve, something that the market is clearly questioning if it is reasonable.
- Despite the low likelihood of this plan being achievable, Fiat has good value over the long term, even if the company does not completely deliver on its targets.
Fiat Chrysler: The Valuation Is Cheap Even If You Do Not Believe In The 2018 Targets
- Investors gave little credit yesterday to Fiat’s 2018 targets: the group plans notably to increase its net income to around EUR5bn in 2018 from EUR0.9bn in 2013.
- They also remained concerned about the group’s balance sheet.
- But we remain confident that a mix of capital increase, disposals and improving cash generation will gradually reduce the group’s debt and the stock beta and sustain the rerating.
- Even assuming a 30% miss on 2018 targets and a capital increase, the stock’s 2018 P/E would be cheap around 3.5x.
- Cheap valuation – absolute and especially on relative basis vs General Motors and Ford.
- A very solid CEO - Sergio Marchionne was the 5th CEO in just 2 years before he took over in 2004.
- Boost from recent Chrysler acquisition - Fiat is now the 7th largest auto company in the world.
- Bad economic conditions in Southern Europe - have affected the company negatively.
- New premium strategy - less vulnerability to cyclical economic downturns.
A Call On The European Car Industry: Long Peugeot, Short Fiat
- How to get exposed to a recovery of European car industry? Be long Peugeot, short Fiat.
- Peugeot's new "ticket," with Tavares as CEO and Gallois as chairman, is very promising.
- Product lineup is far richer at Peugeot than at Fiat.
- Geo mix: A call option on China for Peugeot, vs. U.S. exposure for Fiat.
- Valuation: Two cash-burning companies, but Peugeot looks cheaper on multiples.
Fri, Dec. 19, 3:00 PM
- U.S. automobile sales are forecast to increase 11% in December to an annual selling rate of 16.6M units, according to a fresh forecast from TrueCar.
- The research firm says the industry benefited from lower gas prices and a better month of weather than was seen a year ago.
- For the full year, TrueCar expects total U.S. vehicle revenue to be up 8.3% to close to $1T.
- Transaction prices on new cars are up 1.9% to $31,831 YTD.
- Used vehicle sales are up 3.3% for the year.
- Related stocks: GM, F, TM, FCAU, HMC, OTCPK:NSANY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCQX:VLKAY, OTCPK:FUJHY, KMX, CRMT, AN, LAD.
Fri, Dec. 19, 2:17 PM
- The age of connected cars appears closer with Google pushing forward with its next-gen Android M software designed to be integrated into automobiles.
- The industry has a bit of an uneasy relationship with Google, despite the company's open-source approach to the technology.
- Though most major automakers collaborate with Google through the Open Automotive Alliance - which aims for a common platform to drive innovation - the self-driving car initiative of Google and their own infotainment ambitions keep them wary.
- Analysts originally forecast vehicle-to-vehicle communication would be part of the connected car concept and be integrated into some models by 2016, although that timetable now appears unlikely.
- What to watch: Before any major breakthrough occurs, the DOT needs to weigh in on next-gen connected cars. That gets trickier with safety and security concerns teed up again after the high-profile GM recall debacle and crippling Sony hacking incident.
- Automaker stocks: GM, F, TM, HMC, OTCPK:NSANY, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:MMTOF, OTCPK:PEUGF, OTC:RNSDF, TTM, OTCPK:MMTOF, OTCPK:SZKMY, OTCPK:FUJHY, OTC:RNSDF, OTCPK:GELYF, FCAU.
Tue, Dec. 16, 7:14 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) car registrations +3.7% to 56,485 units in November, according to the European Automobile Manufacturers Association.
- YTD registrations +3.3% to 696,957 units.
- Market share: 5.9% in November, 6.0% YTD.
- Results include the Fiat, Lancer, Chrysler, Alfa Romeo, and Jeep brands.
- EAMA release (.pdf)
Fri, Dec. 12, 10:07 AM
Fri, Dec. 12, 7:04 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) dramatically increases the number of recalled cars tied to the Takata airbag inflator issue after being criticized by the NHTSA.
- A total of 357,933 vehicles are now subject to the recall, including some Dodge Ram pickup and Chrysler 300 models.
- The automaker says it hasn't identified an inflator defect in any vehicles, but is initiating the recall flurry in an abundance of caution.
Thu, Dec. 11, 6:57 AM
- The number of CNG-powered vehicles in Europe will grow to between 10M and 12M by 2020, according to a rosy forecast from the Natural and Bio Gas Vehicle Association in Europe.
- The rapid pace of growth predicted would require the support of European governments with tax incentives and the establishment of a network of CNG fueling stations.
- Volkswagen (OTCQX:VLKAY), Mercedes-Benz (OTCPK:DDAIF), and Fiat (NYSE:FCAU) are the automakers poised to benefit the most if CNG takes off in Europe.
Thu, Dec. 11, 2:52 AM
- Fiat Chrysler (NYSE:FCAU) has priced an offering of 87M common shares at $11 apiece as it seeks funds to cut debt and bankroll a costly new-model development plan.
- The automaker also priced a $2.5B offering of mandatory convertible securities due 2016. The securities will pay a coupon of 7.875% per annum.
Mon, Dec. 8, 10:45 AM
- New data from Truecar.com indicates more than one million cars with a transaction price over $50K will be sold this year.
- Sales at the price point are up 30.8% through November compared to a year ago.
- Transactions for cars below the $50K level were up 4.1% for the same time period.
- Detroit automakers (GM, F, FCAU) have big plans for the Cadillac, Lincoln, and Fiat brands in the U.S. in 2015.
- Meanwhile, German automakers (OTCPK:DDAIF, OTCPK:BAMXY, OTCQX:VLKAY) are all increasing production capacity in the U.S. based on forecasts for strong high-end sales growth.
- Strong demand in the U.S. for cars priced over $50K also bodes well for Tesla Motors (NASDAQ:TSLA).
Mon, Dec. 8, 7:46 AM
- Detroit automakers (F, GM, FCAU) are likely to face an intense standoff with the UAW next summer as a new contract is negotiated amid an overall improved pace of sales in the industry.
- Labor:Though union workers have participated in the industry recovery through profit sharing arrangements, the UAW plans to ask for hourly wage increases across the board.
- Management: The Big Three will look to keep a two-tier wage system that allows them to hire workers at an entry level. The group has also learned from the painful mistakes it made in the past.
- What to watch: The UAW has a little more firepower in its back pocket with the ability to strike at Chrysler and GM with bailout restrictions gone.
Fri, Dec. 5, 2:32 AM
- Fiat Chrysler (NYSE:FCAU) shares are 3.7% lower in AH trading after it announced plans of new offerings, including 87M common shares (valued at $1.15B based on Thursday’s closing price) and $2.5B in mandatory convertible securities.
- The move is aimed at raising fresh capital to pay down debt and bankroll a costly new-model development plan.
- Fiat Chrysler also plans to offer an overallotment of 13M common shares and another $375M in convertible notes if its initial sales generate enough demand to warrant an additional offering.
- Previously: Fiat selling 87M shares, $2.5B in convertible securities
Thu, Dec. 4, 5:40 PM
- Fiat Chrysler (NYSE:FCAU) is is selling 87M shares through a public offering, and giving underwriters a 13M-share overallotment option.
- The offering consists of "common shares currently held by FCA as treasury shares and additional common shares that FCA intends to issue to replenish the share capital canceled in accordance with applicable law following the exercise by Fiat S.p.A. ("Fiat") shareholders of cash exit rights under Italian law in connection with the cross-border merger of Fiat into FCA."
- Fiat is also offering $2.5B in convertible securities due 2016. The securities are expected to eventually pay a coupon, and "will be mandatorily converted into FCA common shares at the stated mandatory conversion date unless earlier converted at the option of the holder or FCA or upon certain specified events." Underwriters will have a $375M overallotment option.
- Fiat only says net proceeds will be used for "general corporate purposes."
Wed, Dec. 3, 1:10 PM
- Automobile sales in Canada rose 4% in November to 138,886 deliveries
- Sales growth has been strong enough in Canada that an annual record should be set sometime this week.
- Ford (NYSE:F) remain the top seller in the nation for the year with sales of 269K units to edge Fiat Chrysler Automobiles (NYSE:FCAU) which has 268K units sold.
Tue, Dec. 2, 3:27 PM
- New car prices rose 1.7% Y/Y and 0.5% M/M to $33,754 in the U.S. during November for the 8 eight largest automakers, according to Kelley Blue Book.
- Average car price gain/loss (Y/Y): Fiat Chrysler Automobiles (NYSE:FCAU) +3.4% to $33,833; General Motors (NYSE:GM) +3.4% to $37,749; Hyundai (OTC:HYMLF) +3.3% to 424,913; Ford (NYSE:F) +2.6% to $35,832; Toyota (NYSE:TM) flat at $30,909; Honda (NYSE:HMC) -0.3% to $27,341; Nissan (OTCPK:NSANY) -1.0% to $28,652, Volkswagen (OTCQX:VLKAY) -3.7% to $38,556.
Tue, Dec. 2, 1:15 PM
Tue, Dec. 2, 8:20 AM
- Chrysler Fiat Automobiles (NYSE:FCAU) reports it had its best November since 2001 on broad sale gains.
- Brand sales growth: Fiat +1% to 3,111; Chrysler +30% to 27,243; Jeep +27% to 57,489; Dodge +1% to 42,108; Ram +31% to 40,864.
- Model sales growth: Jeep Patriot +47% to 7,546; Jeep Wrangler +16% to 13,952; Jeep Cherokee +67% to 16,945; Dodge Dart +39% to 9,012; Dodge Ram P/U +21% to 35,865, Chrysler Town & Country -29% to 8,055.
- The automaker says it ended the month with 80 days supply of inventory vs. 84 days last month.
Tue, Dec. 2, 8:12 AM
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