Volkswagen

Insane Porsche/VW relationship just gets weirder.

afp.google.com/article/ALeqM5h3we1RHeB2z1EK7ELu04JXYcwDaw
finance.yahoo.com/q?s=VOW.F

Shitty to be on the wrong side of that short squeeze, which was the logical side to be on.

I was talking to a German colleague last week and he was of the opinion that the whole VW thing is a bit suspect. VW now accounts for 25% of the Dax (according to the figures he gave me, I don’t have any way of knowing!), so speculating in VW shares is now a way to keep the overall Dax up (in the same way that speculating in Elan can do the same thing for the ISEQ). His suspicion was that there are some hefty wrong-way trades in Dax futures that are being lessened by the speculation in VW.
(Neither of us are financial, we were in an Indian restaurant in Jakarta, and alcohol had been taken, so it may be that we were both talking nonsense!).

Recession hitting hard these days, eh! XD :laughing:

The Bloomberg report on this is quite interesting:
bloomberg.com/apps/news?pid= … refer=home

Ooouuch.

Gotta use those expenses - spend 'em while they’re still tax free!

Unreal watching this one today, I spoke about it hear before on one of the other short squeezes. Today’s was epic though, saw guys who sat out all the other ones forced to cover today. At one point VW was the second largest company on earth by market cap. Just crazy, guys couldn’t cover fast enough, it went from 400-630 in a heartbeat. Nice trading P&L for Porsche (the biggest hedge fund on the planet :wink:)

From what I heard guys had to cover because Porsche are gonna take the 75% stake and the german gov already have 25% so there’d be nothing left on market. Are announcements like that not market manipulation?

Volkswagen up another 62% today!

Yeah Porsche at nearly 75% and Baden-Wurttemberg (I think) with 20% leaves only 5ish% free float. Rumour has it that the short sellers have been borrowing shares from Porsche itself without knowing it!

I was sure pdd was off - 866??? wtf - someone’s quids in

VW closed at 210 on Friday. 920 now. Somebody is getting murdered on this.

Must be a shed load of shorters on this one - that’s gotta hurt bad. Times like this I’m glad I work tech.

VW now the biggest company in the world !

This will be magnificent when it explodes.

Still waiting for Porsche to announce their holding in Bank of Ireland.

:angry:

if only, 8DD XD

How do people see this one playing out?

Obviously, Porsche has these hedgies by the balls right now. What happens when all these short positions are eventually closed out though? A massive collapse in the share price, or will the fact that there’s only 5% free float limit the fall?

Is there a shorting opportunity opening up for the DAX to fall 700+ points back to 4000 or so?

I wonder if Porsche itself is on the other side of the short position?

  • I lend you shares to short me
  • I take the other side of the short position
  • You have to buy shares on the open market to give me at the agreed short price
  • I get to buy cheap shares in VW, make money from the loan and see you squirm
    Or have I got how shorting works wrong again?

I would say this is how it’s working:

  • I, Ferdie Porsche, allowed the banks who were holding my shares lend them out.
  • I suddenly change my mind and told my banks to stop lending them out.
  • I then decide to issue some press releases making it clear that the shorts were screwed and inviting interested players to mount the mother of all short squeezes.
  • I then hedge as much of my position as I can when the stock goes into the stratsophere.
  • I then book extraordinary (you betcha) income to my P&L and award myself a big bonus.
  • I then punch air with fist and say see, there’s one in the eye for Goldman Sachs.

Edit: CNBC’s David Faber must have read this. :astonished: According to him, today’s steep fall in GS stock price may be due to a perception that they are on the hook for a lot of these losses.

Here’s the first major casualty of the VW short squeeze.

reuters.com/article/mergersN … 4720081119