Honda shares...

f1.redbaron · Post 07 Aug 2006, 02:38

I was thinking about that old slogan "Win on Sunday, sell cars on Monday". I was wondering if Honda's first win ever will do anything to the value of their shares. Today (the day of their first win), shares were at $33.45. It'd be interesting to see whether that slogan still holds water:

http://wwwtest.forbes.com/finance/mktgu ... ml?tkr=HMC

zac510 · Post 07 Aug 2006, 10:57

Interesting idea! Keep us posted.

f1.redbaron · Post 08 Aug 2006, 00:28

Closing Price: $32.83
% change: -1.85%

Which begs the question...How do they measure whether the money invested into F1 is paying off? Sales are one thing, but for the Japanese manufacturers, those number had been on the rise anyways, how how does one know whether it is worth spending $400/year?

bhall · Post 08 Aug 2006, 01:18

The win yesterday probably just reminded otherwise oblivious investors that Honda is spending tons of money (some would say wasting) on Formula 1. That could account for the drop.

zac510 · Post 08 Aug 2006, 10:31

Share price doesn't really reflect car sales though.

Prior to the car sale, it is about brand building. There are some good books out there about it.

Brand building sounds stupid, and it is really, but it is the only way to build a big company into a really big company. It is predicted that aorund 70% of advertising and marketing is wasted, that includes TV ads, promos, etc so F1 is perhaps not as bad as it first seems.