In stock trading and investing, one of the philosophies that need to be adopted is not necessarily "buy low and sell high" but "buy high and sell higher", according to financial markets author Martin Tillier.

Luxury sports car manufacturer Ferrari ($RACE) is undergoing a brand makeover. From a specialist manufacturer of high end supercars to a more inclusive brand manufacturing lifestyle accessories for its fans and planning to equip its model line with a more affordable entry level vehicle (much to the chagrin of purists), Ferrari's transformation has helped its stock since its spinoff from Fiat Chrysler ($FCAU) a few years back.

Excitement Generated by the Portofino

Ferrari's recently unveiled entry-level model, the Portofino, is another step in this quest. Replacing the California T, the Portofino is the culmination of efforts taken to make Ferrari's entry level model more exciting. While the Portofino has the same 3.9-liter V8 engine as the California T, power has risen from 552 hp to 591 hp thanks to some serious efforts on the engineering front with new pistons, intake system, variable turbo boost management, and engine software modifications.

All that power propels the car from 0 to 60 mph in just 3.5 seconds, accelerating all the way to a top speed of 200 mph - not bad for what's christened an entry level model. The Portofino's chassis has greater torsional rigidity while being simultaneously lighter, ensuring better handling. The excitement from this model is propelling Ferrari stock to new highs. But that's not all.

Ferrari SUV Speculation Stirs Excitement Too

Speculation about a possible SUV with Ferrari branding has served to further excite the stock. Rumors have been abounding of Ferrari developing an SUV or at least a crossover. CEO Sergio Marchionne did not deny the speculation, further reinforcing the belief that an SUV with the iconic prancing horse emblem is on its way. This is quite the stuff of dreams, seeing an SUV called Ferrari.

The purists may not like this one bit since they want the prancing horse to be associated with racecars and race-bred road cars. But nobody associated Porsche with SUVs too till the Cayenne came along. Luxury sports car brands Maserati, Bentley and Lamborghini all have SUVs in their lineup and it does nothing to dilute their race bred, high performance appeal.

Ferrari Stock Is One of the Most Exciting Out There

Whether the purists agree or not, the recent moves made by the company under the leadership of Sergio Marchionne have proved to be really successful and have broadened the brand's appeal to a much wider section of the public. Its branded lifestyle accessories have also played their part. Some industry experts speculate that if $RACE keeps on rising, it will continue to be more attractive to investors and stock traders who believe in buying high and selling higher.

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