Porsche and VW shares

Discussion in 'OT (OFF Topic) Forums' started by Satch, Oct 29, 2008.

  1. Satch

    Satch Hardcore MB Enthusiast

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    Once upon a time a mostly family run car company found that short sellers could smell blood. And they shorted the stock in one of their holdings. And shorted some more.

    Throughout this the family stood firm, buying stock when they could (possibly through options and arrangements with others so the short sellers could not see what the true position was) until one day when it turned out they almost all of the company and the short sellers were in a real mess. Ho ho, cried the Press, evil short sellers get what they deserve.

    Except that this was in 1920, the New York Stock Exchange and the Stutz Motor Company, controlled by Alan Aloysius Ryan and his family. And it did not end well for Stutz or Ryan himself.

    http://brontecapital.blogspot.com/
     
  2. Dryce

    Dryce MB Club Veteran

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    LOL.

    At the moment the hedge funds are pointing their fingers at the banks saying they were irresponsible.

    The supposed function of hedging isn't speculation but performing risk management - for a price.

    So they claim shorting is about identifying overpriced stocks and somehow they help the market find the correct price level. Tosh.

    Why can't speculators just admit when they're speculators? That way they'd maybe realise that they are actually speculating - and that associated with that is risk:mad:
     
  3. carnut

    carnut Hardcore MB Enthusiast

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    the trouble is they are speculating with our money; either its banks or pension providers. At the end of the day they still get paid handsomely and leave us to see our investments go down. Dont for one moment think this is not happening to you:devil:

    Im 59 and my pension valuation has dropped 10% in the last 2 weeks!!!:eek:
     
  4. Birdman

    Birdman Hardcore MB Enthusiast

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    Robert Peston (I think I'm becoming a fan of his) discusses this topic at some length in today's blog.

    http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/10/hedge_funds_and_vw_what_a_pile.html


    At one point, he writes,

    "Porsche said it would be helping out the squeezed hedge funds by settling "hedge transactions in the amount of up to 5% of the Volkswagen ordinary shares" - which has the effect of releasing 5% of VW's stock on to the market for trading."

    So it seems those kind-hearted German car makers do care, well, a bit, about their reputation for market probity. Ahhhhh! It's 'Adopt a Hedge Fund' day. Ahhhhhh:)
     
  5. Birdman

    Birdman Hardcore MB Enthusiast

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  6. Dieselman

    Dieselman Banned

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  7. scumbag

    scumbag Hardcore MB Enthusiast

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    I am not religious in any way.....but I do recall one of 10 commandments....


    Seems it may be a good idea to actually follow the advice form several thousand years ago?
     
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