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Why the Ferrari IPO was the beginning of the end.

Discussion in 'Ferrari Discussion (not model specific)' started by jjmalez, Sep 5, 2019.

  1. jjmalez

    jjmalez F1 Rookie
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    How Ferrari NV Would Profit From An F1 Budget Limit
    Sep. 3, 2019 1:12 PM ET
    Christoph Liu

    Summary

    Formula One Group is considering the introduction of a budget limit in Formula 1 from 2021.

    Ferrari NV's racing division Scuderia Ferrari has for years been opposed to a budget limit.

    This is certainly understandable given that the team has the highest budget at the moment.

    However, the introduction of a budget limit results in significantly increased profits for Ferrari as a company.

    I believe that it would be a favorable outcome for shareholders as it would increase the already excellent profitability without endangering the brand. So the perspective of a potential budget limit affirms my bullish view of the stock if anything.

    https://seekingalpha.com/article/4289347-ferrari-nv-profit-f1-budget-limit

    "favorable outcome for shareholders"

    NYSE: RACE :(
     
  2. I'm 360 Canuck

    I'm 360 Canuck Formula 3

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    Lars!
    The end of what?
    Underwhelming f1 performance?
     
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  3. jjmalez

    jjmalez F1 Rookie
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    The whores on Wall Street only care about shareholder value.

    "You're a two bit pirate and a greenmailer. Nothing more... Gekko! Not only will you sell your mother to make a deal, you'd send her C.O.D."

    - Sir Larry Wildman
     
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  4. Nospinzone

    Nospinzone F1 Rookie

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    Maybe a budget will be good for them. They'll have to work smarter.
     
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  5. I'm 360 Canuck

    I'm 360 Canuck Formula 3

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    Exactly.
    Hasn’t been the golden years for Ferrari in a long time.

    Lack of resources sometimes begets resourcefulness.
     
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  6. jjmalez

    jjmalez F1 Rookie
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    I think you are missing my point. RACE NV (nyse:race) isn't necessary concerned about the success or failure of the scuderia. They are more concerned with it's effect on shareholder value.

    When a company goes public, It's top priority is to the shareholders. Not to some folklore that Mr. Ferrari built his road cars to fund his racing habit, and the technology from their racing habit was fed back into the road cars that bare his name.
     
  7. Rossocorsa1

    Rossocorsa1 F1 Rookie

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    Certainly plenty of opinions about the modern Ferrari company. Still, in the end, I’m not really sure what there is to complain about. The company is incredibly profitable, the product portfolio is exceptional, the company is more focused on heritage owners today more than they ever have been, and the future product pipeline seems rather exciting. Sure, I would prefer F1 was dominating but I’m sure that day will come. I love the “old” Ferrari too, but that’s not to say I don’t love the modern company. It’s different, and very remarkable in its own way. This isn’t 1965, 1985 or 1995. Times change.
     
  8. PhilNotHill

    PhilNotHill Two Time F1 World Champ
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    Ferrari is making the most reliable cars they have ever made. And they come with a seven year warranty and seven years free maintenance.

    If you like to wrench on your cars there are lots of those out there.

    I have driven some of the older Fcars. But my 458 Spider is faster than an F40 and has no turbo lag. It sounds great and costs about a fourth as much. The F40 is an iconic car and will probably appreciate in value. But it’s out of my price range.

    I don’t know about Ferraris made after the 458, but if they are as good as the 458 l would say Ferrari is doing something right.

    When cars go all electric l just can’t see how this fits into the Ferrari mystique.
     
  9. mwr4440

    mwr4440 Three Time F1 World Champ
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    'I design and build engines.

    Aerodynamics is for those who can't build engines.'

    Enzo Ferrari



    When they become electric,

    NOBODY Will be building ENGINES.



    It will be then, ALL OVER.
     
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  10. jjmalez

    jjmalez F1 Rookie
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    #10 jjmalez, Sep 8, 2019
    Last edited by a moderator: Sep 9, 2019

    Yep. And as the thread title reads... the beginning of the end.
     
  11. Caeruleus11

    Caeruleus11 F1 Veteran
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    I don't buy this line of thinking. It says Ferrari beholden to the public markets is no longer Ferrari. But Ferrari before was the cash cow inside of FCA- itself beholden to public markets. And there were always local politics to contend with. Ferrari has always had to roll with the times. The big question is whether they are making great cars that inspire you to dream. My answer to that is yes! But I am but one person. You all might have a different point of view.
     
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  12. maximilien

    maximilien Formula Junior

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    Why today is in negative?
     
  13. tbakowsky

    tbakowsky F1 World Champ
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    No..it will be a new beginning. Electric cars already outperform their gas car equivalent by a huge margin. The only thing that will be missing it the sound of an ICE engine.

    The cars will be better, faster, and will be able to have those crazy out of this world designeds as a direct result of not needing to package and ICE engine and all is accoiciated components.

    You want performance? This is where it will come from. Performance you just cant even fathom. In fact the human is now the weak point of any current high performance car platform. Add electric...even more so..
     
  14. Rossocorsa1

    Rossocorsa1 F1 Rookie

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    Interestingly, I have no doubt whatsoever that Enzo Ferrari would have loved electric vehicles. For that matter, he would have loved any power plant that was more powerful, go faster and get his team over the finish line first. Sure, he was married to the engine, because that’s what was relevant in his day. All he cared about was winning.
     
  15. tbakowsky

    tbakowsky F1 World Champ
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    Everything about electric and performance driving is a huge positive. The only down side is noise. That also will fade away.

    I look at ICE cars now the same way people look at the steam locomotives of the past. Much romance and nostalgia. However the reality was much different.

    I fix ICE cars for a living..but I'm not blind nor ignorant to the fact things are changing and fast.

    Electric cars as we know them are in the model "t" years..Tesla is already working on a 20 year battery with a range of over 1 million miles over its life time.
     
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  16. Coincid

    Coincid Formula 3

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    There is no 7 year warranty. It is 3 years. There is a 7 year free regular maintenance program.
     
  17. paulchua

    paulchua Cat Herder
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    Prize money has largely covered majority of expenditure right?
     
  18. jjmalez

    jjmalez F1 Rookie
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    Ferrari (NYSE:RACE) is being bid down by investors after the automaker unveiled new models yesterday just ahead of the Frankfurt Motor Show. Ferrari is actually skipping the Frankfurt event this year, but launched the F8 spider and 812 GTS in Maranello, Italy.

    https://seekingalpha.com/news/3498247-ferrari-minus-5-percent-new-model-reveals

    Stock closed Monday at $160.74 and dropped as low as $150.41 during trading on Tuesday.

    FWIW
     
  19. paulchua

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  20. JTSE30

    JTSE30 Formula Junior

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    "outperform" exactly how?

    top speed = fail (SF90 = 84mph battery only, 130mph hybrid mode;Tesla top speed 155mph, Rimac claims 227mph, but at what price)

    handling = fail (batteries may have low center of gravity but are heavy and do not lend to anything more than a straight line)

    power density = fail (various problems, ranging from slow to recharge/even with 'high power chargers' which will always be few and far between, to range being affected by ambient conditions including inability to charge at cold temperatures with any effectiveness)

    weight = fail (batteries are heavy and regardless of charge level, weight remains the same)

    energy = fail (unless you are able to plug in at home or other convenient location where 'hours of waiting' are acceptable, you will not be able to 'recharge', thinking of those without a private garage availability/etc which is a large percentage of population in any country)

    sound = fail (never will an electric motor naturally produce sound of a combustion engine, a soundtrack with speakers, sure, but that's artificial)

    uniqueness = fail (electric motors are commodity, Ferrari doesn't make them, neither the others, all made by 3rd parties, so, at least in terms of exotics, commodity propulsion = fail, other than body shell and perhaps a few other items, nothing to make a Ferrari special other than the badge, where would Ferrari be now if all its engines were made by Ford? Sure, Pagani uses MB V12 but it is a unique engine and volume-wise their total production is less than a few months that of Ferrari )

    I'm sure there is more, but, I do not understand how 'electric cars already outperform by a huge margin', ?
     
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  21. JTSE30

    JTSE30 Formula Junior

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    Steam locomotives were replaced by diesel electric locomotives due to many reasons but ultimately the energy density of diesel is many times greater than that of wood/coal...Electric cars have this same problem, energy density of batteries is no where near that of gasoline.

    Electric cars have been around since before the Model T, the only reason for any progress in electric cars in the past 15 years is government forcing by way of subsidies for production and penalties on CO2 output requiring hybrid solution and handouts for customers to purchase.

    Consider over 90 million cars and light trucks are produced worldwide each year (about 16 million for USA and 16 million for EU) the reality of raw resource limitations (rare earths for the electric motors, lithium / cobalt for batteries, etc) will literally make it impossible for annual (full not hybrid) electric car production to much exceed 10 million units for decades to come if ever exceeding that. Of course, there is the distinct possibility the market is nearing saturation for current electric car technology. And, without China's results, well, annual production is really quite low. And, there's no real rush in the market, things do not seem to be changing fast, at least in USA. And consider, the marketplace has spoken, in general, cars are out, SUVs are in, not much choice in 'electric SUVs' at current time.

    A 20 year battery is nice idea, but how many 20 year old cars are actively used? Cars wear out, speaking of common cars vs exotics.
     
  22. dahveedem

    dahveedem Formula 3

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    I have to admit.. I haven't read this whole thread but I've bought and sold RACE for the past year or so... in and out and I've made some coin.

    Last in I'm in at $138 a share. Honestly I wish I'd have bought in the $8 drop earlier this week.

    Ferrari is a brand. Look at everything the brand with Ferrari. The public perception is Ferrari is the pedestal everyone wants to get to someday.

    Forget the fact newer minivans are faster than some older Ferrari. (Btw mine is a 93 348 Speciale)

    Everything is shareholder value these days...

    Sent from my SM-G965U using Tapatalk
     

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