START YOUR ENGINES, YOUR GOING TO WANT TO BE READY FOR THIS $RACE.
OUR NEW COMPANY PROFILE IS FERRARI N.V. (NYSE: RACE)
Ferrari N.V. (RACE) is the best investment, one could make in the automobile industry right now. Generally speaking, when we converse about a investment in such a sector, we tend to steer towards brands like Honda, Toyota or even Hyundai; brands that are the focal point of this industry. At this point, you all are probably wondering “Why isn’t this guy writing about Toyota then? or Honda? Why Ferrari?” Allow me to explain.
Toyota Motor Corporation (NYSE: TM) is currently priced at $100.82 per share, up $1.03 (+1.03%) at market close today. Broke the $100 barrier it’s been meaning to, in order to get back on route to its 52 week high of $140.24 per share.
Ferrari N.V. (RACE) is currently priced at $43.62 per share, down $0.03 (-0.07%) at market close today. $RACE is also undervalued, below its 52 week high of $60.97; but, I assure has the potential to break $100+ in the upcoming year.
Traditionally, a majority of the automobile industry’s consumers turn towards Toyota, Honda, or Hyundai even, not due to the car brand’s popularity, but primarily because of the price point, integrated with great durability and quality; as a result, gives these automakers the majority of the market share.
There is vast potential and growth in Ferrari, the company went public just last year on October 21st, 2015; it has been in the market for only, a little over 8 months. There was much speculation in anticipation of its IPO, both good and bad. Bad, because the luxury automaker had initially been owned by Fiat & Chrysler (Fiat bought Chrysler out of their bankruptcy); now given their history, a question of financial stability, consistency, sustainability and good faith came in to play.
The Good? Ferrari’s IPO allowed the luxury automaker to raise $893 million, slightly lower than the anticipated $1 billion. Shares were priced $52 and saw a 13% rise on its launch day; the company’s valuation at the time, came close $10 billion! Today, over $12.4 billion! Keep in mind, as I mentioned before, this company has been public for only, a little over 8 months.
In the year of 2014, Ferrari posted revenues of $3.1 billion with profits exceeding $302 million. For the year of 2015, they finished slightly higher, with revenues of $3.3 billion, with profits of $325 million!
On May 2nd, 2016, the luxury automaker released earnings for the 1st Quarter; reported $0.45 per share, an increase from $0.39 last quarter, but shares still fell 2.9% only because of extremely, high expectations set by its investors! In a industry like this, where Tesla and other luxury brands such as Lamborghini poise a threat and also having beat earnings every quarter and increasing net revenues by 3% almost every year…
Globally, the luxury automobile industry is worth $455.15 trillion! That’s including brands such as Tesla, Lamborghini, Alfa Romeo, Lotus, Mercedes and BMW. Ferrari’s valuation, as I mentioned before, is over $12.4 billion. Only 8 months, having gone public, the company has only begun to take its reign in the automobile industry. Can you imagine Ferrari’s market share, where it would be if the company had gone public 5 years ago? With the outstanding earnings, increasing revenues and an improving line of supercars, share prices would have been $100+!
One who rides with Ferrari, is a $RACE they will most definitely win!
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