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Discussion in 'Mopar News' started by Hemidakota, Dec 19, 2017.
A surprising move...still less one percent ownership.
The link is a broken...awaiting response. Apparently, yesterday and today's trading for FCA is up.
JPMorgan Chase & Co. Purchases 4,669,960 Shares of Fiat Chrysler Automobiles NV (NYSE:FCAU) (at https://ledgergazette.com/2017/12/19/fiat-chrysler-automobiles-n-v-fcau-shares-bought-by-jpmorgan-chase-co.html )
This is interesting.
This is a long-term investment. They know FCA will introduce few new vehicles in the next three years.
I have 10 shares of FCA and my voice should be heard just as much as anyone elses!
Do they know something we don't? The stock has nearly doubled in six months though.
Roughly five million shares, that's a lot - maybe not for Chase, but still, that's closing in on $100,000,000
They bought anytime in the 3rd quarter, Jul-Sep. They could have bought before merger mania drove up the price starting around mid-August. There were several very high volume trading days for the stock as it started to rise.
I think that the new Wrangler and new Ram has investors excited.
Yes, and I think FCA getting close with Hyundai is helping too.
Price rise with high volume shows there is serious buying.
This obsession with zero net debt and industry leading margins tells me we are on to something very big. Ratings will likely soar and borrowing cost is likely to get cheaper. I would bet on a BIG acquisition.
Maybe Mary Barra needs to watch her [I should have my mouth washed out with soap for using such terms] after all?
I have a friend who works at Reuters Milan who covers/covered (have not been in touch with her for over a year) FCA. She’s on first name basis with SM. Soon after GM refused his overture she told me “don’t think it’s over, he won’t give up”. I didn’t think much of it back then except that there’s a long way to go. Two years later perhaps the time is right!?
The price of FCA shares is going up and will go up since the market anticipates the spin-off of Magneti Marelli and COMAU, that will be two separate operations.
Reducing the debt is not an obsession, is a need for FCA so to have better "rating" from rating agencies.
Better rating = lower interests to be paid when a company goes on the market to search financing.
Also many financial funds doesn't invest in bonds of companies that have not a minimum rating.
When there will the next downturn of the market the ones that can finance at lower interest rates have an obvious advantage since the margins decrease.
In last days FCA rating by Fitch was rised long-term debt from BB- to BB, mantaining the positive outlook.
Short term rating confirmed at B.
For Fitch ratings from "AAA" to "BBB-" are "investment grade" and from "BB+" to "NR" are "speculative grade". The terms are financial terms.
Many funds put in their portfolio bonds (or shares) of companies with "investment grade" rating, other even more restrictive.
For FCA to enter in the "investment grade", there is another step, the BB+ to do.
Wanted: Italian-American carmaker seeks new driver (at https://www.breakingviews.com/features/wanted-italian-american-carmaker-seeks-new-driver/ )
Sorry, what was that? I didn't hear you.
Makes me curious if there are some surprises in store for FCA, especially Chrysler and Dodge?? Since, one of the core names in the brand has seen so little investment, it would help investors with promising them something by way of a gesture of faith. With Pacifica positing a staggering sales number for a minivan, Chrysler has earned a second new model for its lineup or an early makeover of the 300 based on its sales.
Can you define "staggering sales number"?
Pacifica sold 118K in 2017. That is lower than T&C did in 2013 and 2014 before it was discontinued. Grand Caravan sold more in 2013, 2014, 2016 and 2017.
For a minivan in the age of crossovers, you can't grasp how that's "staggering"?
No, Toyota and Honda sell roughly that volume every year as well and they should be close for 2017 to the volume of Grand Caravan
The minivan market is a four-way race with everyone fairly even for the past 5 years.
Minivan sales overall have been relatively flat since at least 2013. So that’s why Pacifa sales aren’t staggering. The minivan market isn’t shrinking any more.