Why is VW share price still so strong?
Why is VW share price still so strong?
Author
Discussion

zac510

Original Poster:

5,546 posts

236 months

Friday 10th October 2008
quotequote all
If there are any Finance people that haven't thrown themselves out of windows yet still around, can you explain to me why VW/VAG's share price is still so strong?

http://newsvote.bbc.co.uk/1/shared/fds/hi/business...

Cheers smile

Timmy35

13,014 posts

228 months

Friday 10th October 2008
quotequote all
Short squuuuuuuueeeeze.

zac510

Original Poster:

5,546 posts

236 months

Friday 10th October 2008
quotequote all
Somebody else just told me it is because they are expected to snap up some more auto companies when they go bust..

scotal

8,751 posts

309 months

Friday 10th October 2008
quotequote all
Might it be becuase Porsche have said they will be buying more VW shares to take their holding above 50%?

chris_w666

22,655 posts

229 months

Friday 10th October 2008
quotequote all
Timmy35 said:
Short squuuuuuuueeeeze.
??

Is this to do with short selling?

scotal

8,751 posts

309 months

Friday 10th October 2008
quotequote all
chris_w666 said:
Timmy35 said:
Short squuuuuuuueeeeze.
??

Is this to do with short selling?
Yes, and the covering of short positions.

Deva Link

26,934 posts

275 months

Friday 10th October 2008
quotequote all
Porsche have to buy them to average down their emissions, a move that was expected to fail in the European Parliament now looks more likely to succeed:

http://www.reuters.com/article/environmentNews/idU...

tstain

163 posts

269 months

Friday 10th October 2008
quotequote all
good article on bloomberg

"With analysts forecasting profit growth will slow to 1 percent in 2009 from 17 percent this year, the Wolfsburg, Germany-based car producer's earnings outlook isn't boosting its price. Instead traders who shorted the shares on expectations they would decline on Porsche SE's bid for a majority stake were forced to close their positions, according to three people in the securities-lending business who declined to be identified. The failure of Lehman, which lent Volkswagen shares to short-sellers, probably helped trigger a so-called short-squeeze, they said."

http://www.bloomberg.com/apps/news?pid=newsarchive...

Lord Pikey

3,258 posts

245 months

Friday 10th October 2008
quotequote all
Evening guys.

I asked zee Germans at work today and they just said that over the years when things go bad, Germans buy in VW.

They must think its always a safe bet for thier money.

LP

Bing o

15,184 posts

249 months

Friday 10th October 2008
quotequote all
GM shows are doing well too

BigLepton

5,042 posts

231 months

Friday 10th October 2008
quotequote all
Nazi gold in Switzerland.

HTH