W&D, as readers know, understands very little about the horseless carriage. But he often hears his children fantasising about vehicles with such names as Porsche (surely a Ukrainian soup?), Lamborghini (Italian meat dish?) or Aston Martin (EPL team?).
Well, in an effort to better understand the thinking of his children, W&D has done some research into expensive cars. It seems that a vehicle with the brand name Ferrari holds 9 places in the list of the 10 most expensive cars ever sold. The top price being US$38m for a GTO250 1962. Good grief. Maybe even too expensive for Malcolm Turnbull.
And Ferrari is about to undertake an IPO (initial public offering, aka 'float') and list on the New York Stock Exchange. The company is owned by Fiat (the Italian manufacturer, whose reliability reputation lead to it being christened 'Fix It Again, Tony'), which needs the cash to improve its capital position.
Ferrari: what a delicious brand name: it holds the #1 place in luxury car markets in Italy, Spain, France, Switzerland, Singapore, Hong Kong, Indonesia and Australia. It is #2 in USA and China.
Ferrari is amazingly exclusive, deliberately limiting the number of cars sold each year. Nice work, if you can get it. Interestingly, 34% of Ferrari owners own more than one Ferrari (why?).
The company is expected to list on Monday with a valuation of US$10b. This means an IPO P/E of 34. Investors clearly don't give a damn: the float was 10 times oversubscribed!