It may be in the car business, but shares of the new Fiat Chrysler Automobiles have been riding a rollercoaster during their first day of trading on the New York Stock Exchange under the symbol FCAU.
Hoping to attract investors who want a piece of the Chrysler comeback story, the newly merged company will be offering shares on both the Milan and NY exchanges. But it appears that the market isn’t quite what sure to make of the trans-Atlantic automaker. FCAU opened in the Big Apple at $9 a share, surged to $9.55 and then quickly settled back. The stock, which had dropped as low as $8.84, closed the day at $8.92.
“Today marks the beginning of our journey as one global automaker, one FCA,” declared CEO Sergio Marchionne in a statement marking the start of Monday’s trading. But over the weekend, the executive who almost singlehandedly pushed through the alliance acknowledged, “I have no idea” how the market will react, suggesting the best he could offer was “SWAG,” or “scientific wild-ass guess, that the stock will “do well” in the “medium to long-term.” (more…)