Wry & Dry

Should have bought the car. And not the shares.

Readers will recall W&D's alert in October about the upcoming IPO (Initial Public Offering, or 'float') of Ferrari, a motor vehicle manufacturer.  Well, the company was floated at a price of $52 per share in October.  The demand was massive.

And on the first day of trading the stock bounced to $60.97, a 17.25% stag.  Nice work, if you can get it.

Now the flat tyre.  The share price is down to about $35.  That's a 43% share price collapse.

W&D remembers that part of the IPO sell-spiel was that, '9 of the 10 most expensive cars ever sold are Ferraris'.

But Ferrari shareholders didn't buy the cars.  They bought the shares.