Finimize - 👗 Clothing giant’s H&M-fisted results

Hi Reader, here's what you need to know for September 30th in 3:11 minutes.

😎 In this market, you’re going to want to get your hands on a Modern Investor Toolkit – and that’s exactly why we’ve decided to give one away for free. Be one of the first 500 to sign up for a free Summit ticket before midnight on Sunday, and you could get your hands on this generous giveaway. Keep reading to find out more.

Today's big stories

Porsche burst onto the scene with a long-awaited trading debut
Find your investment footing when everything seems to be sliding – Read Now
H&M, the world’s second-biggest clothing retailer, reported plunging profits

Porsche Drives A Stock Shift

What’s Going On Here?

Porsche made its hotly anticipated trading debut on Thursday.

What Does This Mean?

As motorists everywhere know, a Porsche can turn heads like nothing else – a principle that also seems to hold true for shares. With stocks in a never-ending slump, and initial public offerings (IPOs) in Europe raising paltry sums that recall the dark days of ‘09, it looks like a bad time for new stock market listings. But not if you’re Porsche. When Volkswagen listed a 12.5% stake in the sports car company on Thursday, investors didn’t hold back: demand was so strong that shares hit the top of the initial pricing range, helping the company raise over $9 billion and valuing Porsche at around $73 billion. That marks the single biggest IPO in Europe in a decade – good news for Volkswagen, which plans to re-invest the funds as part of its lofty electric vehicle push.

Why Should I Care?

For markets: Not the prince of pop.
Porsche’s shares rose by 3% when trading started – bucking the trend of Germany’s DAX (a key German stock index), which fell on Thursday. But some analysts were disappointed they didn’t rise more, with the coveted “pop” that’s characterized many high-profile listings in recent years. It could be that even Porsche can only shine so brightly against the current dim economic backdrop.

The bigger picture: Porsche outshines its own parent.
This listing gives Porsche a valuation close to that of its own parent company, which is made up of Audi, Skoda, Seat, and the VW brand itself, among others. That may sound strange – but it makes sense given that Porsche’s electrification progress is miles ahead of the other brands’. (Its first foray into electric sports cars is already outselling its flagship 911.) Add its healthier profit margins and legions of die-hard fans to the mix, and suddenly Porsche’s unique valuation starts to seem more sensible.

You might also like: How to work out what Porsche’s stock is really worth.

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Analyst Take

How To Invest When Everything Looks Ready To Fall

Stéphane Renevier, Analyst

When there’s this much red flashing in the markets, part of you may think it’s best to stay away at all costs.

But the other part has got to be thinking: there are assets here that my future self will thank me for buying today.

There probably are. If you’ve got a long-term horizon and money to invest, you should scrutinize every price fall as a possible opportunity.

That’s today’s Insight: how to invest when the market is mostly flashing red.

Read or listen to the Insight here

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