Ferrari’s (NYSE:RACE) New 812 GTS, a V12 Supercar for ‘the People’

Ferrari’s (NYSE:RACE) New 812 GTS, a V12 Supercar for ‘the People’

$RACE

The Key phrase in Ferrari’s 812 GTS debut announcement is ‘series production’

The words are important when it comes to the new drop-top front-engine V12 Ferrari, as in the recent past, Ferrari has been quick to put a cap on the number of such Supercars it would produce (-1), but that is now changed. The new 812 GTS will be made in unlimited numbers, so you do not have to own a dealership to get one.

This is supply and demand 101 mixed with a bit of economies of scale, Yes?

  • The more of these Ferrari makes, the lower demand there will be, driving down the price.
  • Plus, the more of these Ferrari makes, the cheaper they will be to produce, driving up profit.

It’s a win-win for everyone, the hand of the market proves itself victorious again, Adam Smith is smiling.

Now you all know this is tongue in cheek, as this Supercar is in huge demand already and is the man’s version of the ever popular Portofino.

Ferrari is the Aristocrat of the automotive sector.

Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.

HeffX-LTN overall technical outlook for RACE is Neutral to Bearish, overhead resistance is at 160.07 and support at 150.05 all Key indicators are flashing Bearish with a Bullish bias in here. Ferrari finished at 151.55, + 0.51 Wednesday in NY.

Note: Goldman Sachs upgraded Ferrari to ‘buy‘ from ‘neutral ‘calling the stock’s pullback a good “entry point.” “We upgrade Ferrari from Neutral to Buy, offering 15% upside to our new price targets of 182. Our thesis, outlined in Life of Luxury published last month, is fundamentally unchanged post Ferrari’s in-line 2-Q results. We view the stock’s recent pullback (9.5% since July 16) as a good entry point in here.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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