Author Topic: RACE - Ferrari  (Read 58174 times)

fareastwarriors

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Re: RACE - Ferrari
« Reply #130 on: August 04, 2017, 01:16:17 PM »
Ferrari Drives a Deal with the Devil

  Marchionne needs an SUV for the carmaker to justify its valuation

https://www.bloomberg.com/news/articles/2017-08-04/ferrari-and-a-faustian-pact-to-sustain-galloping-stock-price


Fly

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Re: RACE - Ferrari
« Reply #131 on: August 04, 2017, 05:06:03 PM »
Ferrari Drives a Deal with the Devil

  Marchionne needs an SUV for the carmaker to justify its valuation

https://www.bloomberg.com/news/articles/2017-08-04/ferrari-and-a-faustian-pact-to-sustain-galloping-stock-price

It will be a sad day when Ferrari builds an SUV. As an auto enthusiast we all said the same thing when Porsche came out with the Cayenne, and now it is one of their best selling models.

Hey Guys,
what's your take on the fair value of Ferrari?
The recent run-up makes me a bit nervous to be honest..

Im also curious abut this. I have had a profitable run with RACE, but feel like I'm flying too close to the sun.

walkie518

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Re: RACE - Ferrari
« Reply #132 on: June 11, 2018, 08:42:25 AM »
Ferrari Drives a Deal with the Devil

  Marchionne needs an SUV for the carmaker to justify its valuation

https://www.bloomberg.com/news/articles/2017-08-04/ferrari-and-a-faustian-pact-to-sustain-galloping-stock-price

It will be a sad day when Ferrari builds an SUV. As an auto enthusiast we all said the same thing when Porsche came out with the Cayenne, and now it is one of their best selling models.

Hey Guys,
what's your take on the fair value of Ferrari?
The recent run-up makes me a bit nervous to be honest..

Im also curious abut this. I have had a profitable run with RACE, but feel like I'm flying too close to the sun.

You mention some names that bridged the gap with the brand conundrum, but I would think that a buyer of a Ferrari SUV will not be the same person as a the Cayenne buyer... this is a very different market with very different margins if the brand remains intact. 

I don't see why Ferrari wouldn't target better economics than what Ferrari is already achieving.  It wouldn't make sense to take a such a risk.

Saluki

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Re: RACE - Ferrari
« Reply #133 on: June 11, 2018, 09:06:35 AM »
Notmally, I would think building an SUV would be good short term, but bad long term.  If it's a $200k-$400k SUV, then what makes the price justifiable versus other luxury SUVs? If it's sold at a lower price than Ferrari sports cars, it could hurt the brand by having too many people driving it. Packard was a luxury brand and tried to sell lower priced versions of it's cars, and it hurt the luxury cars it sold.  They sold more lower priced cars, but not enough to make up for the loss of the luxury market and they eventually went broke. Harley Davidson has been struggling recently too.  They now have a several bikes in the $8-$10k range to appeal to millenials.  Given the choice of a $20-$30k "Harley" or a "Harley" for half that price, which would you choose? I wasn't smart enough to buy RACE after the spinoff, but I did well with FCAU.  If anyone other than Sergio Marchionne had come up with this idea, I would say "never!" but he's the Batman of the car world and he can work miracles. 
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable

Spekulatius

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Re: RACE - Ferrari
« Reply #134 on: June 11, 2018, 10:03:58 AM »
I think Ferrari should consider building a unique off road vehicle if anything. The risk of brand dilution is quite real however. Ferrari could also consider buying another luxury brand to venture into different markets segments without the risk of diluting their brand.
Life is too short for cheap beer and wine.

whatdadil9

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Re: RACE - Ferrari
« Reply #135 on: June 11, 2018, 10:04:50 AM »
It will be 300k - 500k.

Top of the range. They sell 200k porsche suvs globally and 5k bentleys and 4k lambos. Lets say they sell 3k FUVS at 400k a pop on average. Should be higher. 1.2bn of revenues at 80 pct incrementals is another 1bn of ebit... Think market can support more probably too. They will gain new customers that they dont already have....

walkie518

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Re: RACE - Ferrari
« Reply #136 on: June 11, 2018, 03:46:59 PM »
It will be 300k - 500k.

Top of the range. They sell 200k porsche suvs globally and 5k bentleys and 4k lambos. Lets say they sell 3k FUVS at 400k a pop on average. Should be higher. 1.2bn of revenues at 80 pct incrementals is another 1bn of ebit... Think market can support more probably too. They will gain new customers that they dont already have....

Is the $300-500k your guess or is there something out there indicating pricing?  My first though would put $500k on the lower end?

whatdadil9

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Re: RACE - Ferrari
« Reply #137 on: June 12, 2018, 05:55:53 AM »
I would agree it could and should be more... Im just being conservative and taking a low end rage above of the URUS. Should for sure be higher and would all be incremental to margin.

zizou

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Re: RACE - Ferrari
« Reply #138 on: July 21, 2018, 08:43:59 PM »
Anyone know of the reputation and record of the new Ferrari CEO, LOUIS C. CAMILLERI?

http://corporate.ferrari.com/en/about-us/executive-officers

gfp

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Re: RACE - Ferrari
« Reply #139 on: July 22, 2018, 06:00:59 AM »
Anyone know of the reputation and record of the new Ferrari CEO, LOUIS C. CAMILLERI?

http://corporate.ferrari.com/en/about-us/executive-officers

Seems like his record is the record of Phillip Morris -> Altria Group -> PM International. An entire career in the cigarette business. Maybe Ferrari was the only gig he could find with even more loyal customers