Porsche earns $7.3 billion due to VW options

Hope they realise those profits were 'right time, right place' rather than thinking they're 'traders'.

If it's the latter then it's just a matter of time VW guys before it all goes very wrong for ya.......

So if I were you I wouldn't spend the money just keep it in reserve.
 
"If you're not inside, you're outside."

One of the best trades of the decade so far, right up there with Paulson shorting housing market.
 
Quote from AK100:

Hope they realise those profits were 'right time, right place' rather than thinking they're 'traders'.

If it's the latter then it's just a matter of time VW guys before it all goes very wrong for ya.......
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German companies are run very conservatively. I'm sure that they have no reason to think that they are "traders". In fact, quite the opposite I'd say.

By the way, the Boxster saved Porsche back in 1995.

Even though it meant that Porsche had to hire engineering consultants from Toyota to embarrass them and tell them how they were doing (just about everything) wrong when it came to building a car in the 21st century.

The Germans sucked it up and made big time adjustments (mechanized assembly line, just in time parts inventory, uniform parts and component assemblies across models, much better quality control, etc.) , instead of dying on the vine.
Kudos to them!
 
Quote from Landis82:

German companies are run very conservatively. I'm sure that they have no reason to think that they are "traders". In fact, quite the opposite I'd say.
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Maybe, apart from the banks of course.

They as you say used to be conservative businesses but then they got whiff of 'easy money' and look where it led them.

Thought they were 'traders' but in reality just bull market monkeys........
 
Quote from AK100:

Maybe, apart from the banks of course.

They as you say used to be conservative businesses but then they got whiff of 'easy money' and look where it led them.

Thought they were 'traders' but in reality just bull market monkeys........
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You are quite mistaken.
Porsche has had an "interest" in VW for roughly 3 years now, ever since they acquired a 20% stake in VW in 2005.

It's about the CONTROL of VW.
Not a stock trade!!!

http://dealbook.blogs.nytimes.com/2008/09/17/porsche-takes-a-controlling-interest-in-vw/
 
Quote from Bigpipn:

"If you're not inside, you're outside."

One of the best trades of the decade so far, right up there with Paulson shorting housing market.
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I disagree. The Porsche trade had, and still has, prison risk and therefore has a negative EV. Secondly, it was not intended as a short-squeeze, it was intended to acquire corporate control. Porsche simply took advantage of the short squeeze that happened to occur. I doubt very much they planned all along to lure hedge funds into a trap and squeeze them for 7 billion.
 
Quote from Cutten:

I disagree. The Porsche trade had, and still has, prison risk and therefore has a negative EV. Secondly, it was not intended as a short-squeeze, it was intended to acquire corporate control. Porsche simply took advantage of the short squeeze that happened to occur. I doubt very much they planned all along to lure hedge funds into a trap and squeeze them for 7 billion.
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VW has hopefully learned its lesson with regards to wrong bets in the currency markets. 15 , 16 years ago they lost, as I remember, 600 Million DM. A lot of headlines in newspapers...
 
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