Chrysler-Fiat CEO Sergio Marchionne says the plan to do an initial-public-offering is in "overdrive," and that he hopes to have people buying shares in Chrysler by year end.
"We are now intent on executing the IPO," Marchionne said during a conference call with analysts this week. "It is still my expectation that we will be able to get it done, I hope that we can get it done by the end of this year."
Whether he pulls off the IPO by the New Year may be a reach. After all, the company would have to put together its road show for investors and analysts before we get into the holiday distractions. The question for Marchionne, and those possibly teed up to buy the shares of the storied automaker is this: Is Chrysler a "buy"?
Let's break down the issues and the company as they stand today.
- Auto industry shares have been very good to investors. General Motors is near its 52-week high, with the spread between it's low and high over the last year a gain of 62%. Ford's shares have been up 73% in the last year. Toyota's American Depository Receipts are up 77%. Auto supplier TRW shares have been up 76% in the last 52 weeks. All that compares with a gain of 26% for the Dow Jones Industrial Average over the same time period.