How to Own a Piece of Ferrari; Unemployment’s Groovy Historic Lows; Under Armour Wants to Score with Basketball

Bellisimo…

Image courtesy of  sattva/FreeDigitalPhotos.net

Image courtesy of sattva/FreeDigitalPhotos.net

If you’re among the millions who fantasize about owning an Italian automotive masterpiece, you might just get your chance. Sort of. Ferrari just filed the paperwork for an IPO to be listed on the New York Stock Exchange. Even though 90% of the luxury car company has been owned by FiatChrysler (FCA) since 1988, the company plans to spin off Ferrari into its very own company, in an effort to raise about $5 billion and cut some debt. No actual figures were given as to how many shares are going to be offered, however 10% will be up for grabs by the public, with another 10% going to the Ferrari family and the rest of the 80% to be given to FCA shareholders.  You might have to wait a bit for the big Wall Street debut as it isn’t expected to happen until later in the year or even 2016. The spin-off, while making the business domicile in the Netherlands, will still remain headquartered in its home country of Italy. The company, which is currently valued at about $11 billion, pulled in $3 billion for 2014 on 7,255 cars. Go ahead and do the math on that one. Ferrari takes great pride in employing a “low volume production strategy” meaning the company doesn’t make too many machines because it likes that there’s a certain exclusivity to the automobile. That pretty much explains why people typically drool when they see one on the streets. Just maybe not so much in the Middle East, Europe and Africa from where 50% of Ferrari’s sales come.

How low can you go?

Image courtesy of hywards/FreeDigitalPhotos.net

Image courtesy of hywards/FreeDigitalPhotos.net

The economy has been giving us a lot of interesting numbers in the last few months but this one takes the fiscal cake. It turns out that the number of American filing first-time unemployment claims has hit a 42 year low. Indeed, the rate of first-time applicants hasn’t been this low 1973, falling 26,000 to 255,000, when bell-bottoms were trending, and the word “trending” was decades off from even being coined. FYI, economists didn’t see this one coming. I mean, sure they forecasted a dip, but this would constitute more of a drop…off a cliff.  To put things in perspective, at the height of our most recent fiscal crisis, 600,000 people a week were filing jobless claims each week. Unemployment is also hovering at a seven year low of 5.3% and the economy added 3 million jobs in the last twelve months. And while we had a bit of an ugly unemployment claim number last week, that was primarily because of some auto plant shutdowns and therefore not accurate data. Now, I hate to be a downer but, part of the reason why that unemployment number is so darn low has to do with the fact that plenty of unemployed Americans have thrown up their hands in defeat and given up their job search.

A-Game?

Image courtesy of phanlop88/FreeDigitalPhotos.net

Image courtesy of phanlop88/FreeDigitalPhotos.net

Fitness clothing brand Under Armour is looking to score on the basketball court and hoping to unseat Nike in the process.  Analysts are totally digging the idea too. They figure if Under Armour can gain some major traction in that arena, it’ll give them a real sense of how far the brand can go. It certainly helps that NBA superstar Stephen Curry wore Under Armour kicks en route to the championships and now graces the Under Armour campaign together with his sneaks – the Curry One. But the challenge is great, seeing as how Nike’s got about 90% of the basketball shoe market. As for the athletic apparel makers earnings, Under Armour’s revenue jumped 29% to $783.6 million. Interestingly enough, profits took a 16% to just under $15 million all because of its purchases of some fitness apps earlier in the year.

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