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Monterey Car Week Auctions Sell Throughs Were Strong

#cars #Ferrari #auctions

$RACE

During the month of August each yr, the world’s leading auto manufacturers, thousands of car collectors and automobile aficionados come from all over the world to gather on the Monterey Peninsula in Northern California for Monterey Car Week” — Paul Ebeling

Monterey Car Week is the ultimate place to be if you love luxury living and anything car-related.

This year Monterey Car Week capped off with the 1938 Mercedes-Benz 540K Autobahn Kurier claiming the Concours d’Elegance Best in Show, but that was not the only big headline from the wk.

Big auctions, big debuts from luxury automakers, and even electrification all took a bow as the wk unfolded for well-healed car aficionados. Here are some takeaways from the wk.

Auction action: The big auction houses brought in a total $343-M at the hammer in the wk, a 37% jump from Y 2019 (the Week did not happen in Y 2020). European carmakers, especially Ferrari, dominated the Top 5 auction results, as follows:

1. 1995 McLaren F1 Coupe sold for $20,465,000 (Gooding & Company)

2. 1959 Ferrari 250 California LWB Competizione Spider (closed headlight) sold for $10,840,000 (Gooding & Company)

3. 1962 Aston Martin DB4 GT Zagato Coupe sold for $9,520,000 (RM Sotheby’s)

4. 1962 Ferrari 268 SP Spider sold for $7,705,000 (RM Sotheby’s)

5. 1966 Ferrari 275 GTB Long Nose Alloy Coupe sold for $7,705,000 (RM Sotheby’s)

Overall, the sell-through rate was 80%, with the average sales price Topping $428,004. That signals buyers were hungry for these exotic and unique, and were willing to get into bidding wars to get what they wanted.

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

Our overall technical outlook is still Bullish, a Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February.

Ferrari closed Friday at 214.12 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.

Key technical indicators are Neutral with a Bullish bias. The candlestick pattern indicates the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key support is at 213.97 and the Key resistance is at 220.90. The 13 August Inverted Hammer candlestick confirms RACE’s return to a Very Bullish trend, as the stock is very oversold in here.

All of our Key technical indicators have turned Very Bullish across the board.

Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, its all time high

The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, and Buys at Morgan Stanley and Bank of America.

UBS is now calling the stock at 365. I have not seen any other Street downgrades.

Ferrari will continue to create value in the long term as it becomes the world’s 1st Super Luxury brand.

Ferrari is a quality 1st long term luxury products investment, BAML raised its call to 270 long term.

I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.

Ferrari has an average rating of Buy and a consensus target price at 231.99.

The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I am calling it 375 long term, the Top on the Street, and adjusting it to 250/share short term.

A number of large investors have recently bought shares of RACE, and there have been very few instances of insider selling over the past yr that we have seen. And Ferrari continues to buy back its stock in here.

The stock is considered defensive in the sector.

Have a prosperous weekend, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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