Porsche Corners VW Friday, October 31, 2008
Posted by ei-forum in Investing.trackback
Some of you may have been following the Porsche/VW saga these past weeks or you may have simple heard about what was going on. Here is a very quick & simplistic summary of what happened:
- Hedge funds and other investors where heavily shorting VW stock
- Porsche revealed a 74% stake in VW and options to buy more instead of a presumed 40 something % stake
- Practically no float for the shorts to cover with (state of Saxony is a major shareholder)
- VW shares rocketed to over €1,000 from €210
- It appears the shorts could have lost a as much as €30bn
- Authorities had to step in…
- We have probably witnesses the biggest short squeeze of all times!
DealBook has just published a really interesting article on this event which we feel is required reading for anyone interested in what recently happened and/or about cornering stocks.
Read the article on the DealBook site by clicking: here.
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We have probably witnesses the biggest short squeeze of all times!
I agree!
I knew the VW short squeeze was big, but had no idea it was this vast.
Good reporting.