Shares of global automaker Fiat Chrysler Automobiles N.V. ( FCAU ) are spiking sharply higher Monday, after rumors hit the wires that China's Great Wall Motors is interested in bidding for either all of the company, or its most valuable brand Jeep.
In a separate story Monday morning, Automotive News reported that Great Wall Motors was primarily interested in acquiring Jeep, which is Fiat Chrysler's most coveted brand.
Last month, Morgan Stanley analyst Adam Jonas said in research note, "The iconic off-road vehicle brand alone could account for nearly half of all Fiat Chrysler's sales by 2018."
The market enjoys punishing investors who chase news, so despite the early strength in Fiat shares, I would look for a fade once the hype dies down before this stock ultimately moves much higher again.
The bottom line, I would initiate and add to positions in Fiat around those above-mentioned levels if you're looking to play this stock for a potential Jeep sale or acquisition of the entire company.
- Chinese automaker sets sights on JeepAllentown Morning Call
- Chinese automaker sets sights on Jeep acquisitionUSA TODAY
- China's Great Wall sets sights on Fiat Chrysler Jeep unitCBS News
- China's Great Wall confirms interest in Fiat ChryslerReuters
- China's Great Wall is ready to purchase Jeep from Fiat ChryslerThe Car Connection
- Report: China's Great Wall wants to acquire JeepMotor Authority
- Trouble at Infosys Only Beginning as Turnaround Efforts Stymied After CEO ExitTheStreet.com
- China's Great Wall Auto interested to make offer for Fiat ChryslerShanghai Daily (subscription)
- Markets Right Now: US stocks eke out meager gainsABC News