Fiat Chrysler (NYSE:FCAU) a Golden Opportunity, Like Ferrari (NYSE:RACE)
$FCAU, $RACE, $GS
Ferrari (NYSE:RACE) and Fiat-Chrysler (NYSE:FCAU) the top performers in the automotive sector.
- Stock prices are up substantially
- Well positioned in its international market.
- Short squeeze led to a strong uptick in FCAU, and may continue.
- Short position in Ferrari extremely small, less that 1% loaned out, recent dip seen on profit taking after that strong run that began in July 2016
Investors have been well-served by being long Fiat Chrysler (NYSE:FCAU). The stock price is up 116% over the past year.
They have also been well-served by being long the divestment’s made by CEO Sergio Marchionne as he focuses on core competencies.
Fiat Chrysler stock continued to rise on the week, finishing at 16.25/share, marking its 4th week of upward movement
It finished the week ended 1 September with a solid 6.8% gainer, marking its 3 week of upward movement.
In the prior week, it also traded on a positive note and rose 18.1%.
Overall, Fiat Chrysler stock has risen about 27%, its largest gain since its listing on the New York Stock Exchange in October 2014.
Last month, a report by Automotive News suggests that a Chinese automaker was interested in acquiring Fiat Chrysler and had made some offers that were rejected.
According to a 21 August report, Chinese auto giant Great Wall Motor has confirmed its interest in acquiring some of Fiat Chrysler’s business segments.
Although these news reports were not officially confirmed by Fiat Chrysler, they may be why Fiat Chrysler stock has rallied in the last 4 weeks.
A 2 September report stated that Fiat Chrysler CEO Sergio Marchionne has confirmed that the company has not received offers.
In the last few Quarters, Fiat Chrysler’s profitability and debt position have improved consistently.
HeffX-LTN has set a 34.78 price target on Fiat Chrysler Automobiles. ‘Goldie’ (NYSE:GS) has a Buy rating on the stock with a price target of 30.83/share in here.
|NYSE:FCAU||16.25||8 September 2017||-0.13||16.35||16.36||16.21||2,896,943|
|HeffX-LTN Analysis for FCAU:||Overall||Short||Intermediate||Long|
|Very Bullish (0.58)||Bullish (0.43)||Very Bullish (0.66)||Very Bullish (0.67)|
Ferrari (NYSE:RACE) is up 133% over the past year.
|NYSE:RACE||109.36||8 September 2017||0.77||110.45||110.54||108.96||1,232,252|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Bullish (0.30)||Neutral (0.15)||Neutral (0.16)||Very Bullish (0.58)|
Have a terrific weekend.