All major U.S. stock market averages ended the week lower for the second time in a row.
The S&P 500 fell 0.43% and the Dow Jones dropped 0.51%. The tech-heavy Nasdaq pulled back 0.68%. In contrast, the MSCI Emerging Markets recovered a solid 2.10%.
The star of your Smart Money Masters holdings was, yet again, your most recent pick, Mohnish Pabrai’s Fiat Chrysler Automobiles N.V. (FCAU), which jumped another 6.31% its second week in the portfolio. Bill Ackman’s Restaurant Brands International (QSR) regained some momentum, rising 3.91%. It is now up 20.62% since Feb. 10. Dan Loeb’s Baxter International (BAX) rose 2.22% and now also boasts a double-digit-percentage gain of 10.33%.
Your holding in Fiat Chrysler dominated the news this week, as the stock soared on news of a potential acquisition of its Jeep line of vehicles by China’s Great Wall Motors.
Great Wall Motors’s interest in buying the legendary Jeep brand from Fiat Chrysler is an ambition that analysts are taking seriously.
This optimism is due in part to the success of the marriage between China’s Geely and Sweden’s Volvo.
Back in 2010, Geely Automobile Holdings Ltd. — a little-known Chinese car maker with zero international experience — bought Sweden’s Volvo Cars from Ford Motor Company (F).
Seven years later, Volvo’s sales have soared, and its success has inspired other Chinese automakers to ink similar deals.
Morgan Stanley has calculated that if Fiat Chrysler spun off its Jeep brand, it could be worth as much as all of Fiat Chrysler today at current stock prices.
That’s huge upside for Fiat Chrysler, a company that is now “in play” on several levels.
Five of your positions — PayPal Holdings (PYPL), Restaurant Brands International (QSR), Liberty Broadband Corporation (LBRDK), Baxter International (BAX) and now Fiat Chrysler (FCAU) — all boast double-digit-percentage gains.
Kraft Heinz (KHC), BlackBerry (BBRY) and The Priceline Group (PCLN) are all trading below their 50-day moving averages (MA) and are currently HOLDs.
Nicholas A. Vardy