Thug vs Thug: Porsche 1, Hedge Funds: 0
The latest drama is fun. VW became the largest company in the world, in terms of market cap, ahead of EXXON on a little financial market coup d'etat orchestrated by Porsche. Apparently VW stocks was on the way down, I don't know the details but many Hedge Funds (HF) were short the position. Fine. The price goes down. Porsche starts buying the anonymous float (and probably some private too?), but the point is they build a 73% market share without many people noticing. In the US you would need disclosure after 10% or so. Point is, that many HF wake up and realize that their short position is about to lose a lot of money. So what do they do? those idiots? they short cover all together, which means they buy the stock to cover the short. The stock zooms up, by a full multiplier and overtakes EXXON. Porsche makes A KILLING in the process and has robbed the city robbers to the tune of "potentially $30B". Not bad for a days worth of work. PS: hey, psst Porsche! With t...
Comments
The simple fact that BULL(sh) IT is in the list just make it really clear that it's a poisson d'avril, of course ;)
It was quite funny to hear people in the queue wondering if you-know-who would turn up, how you-know-who would be dressed, etc…...as if the President of the French Republic would not be there.
The English newspapers did not really care at all about the announced new era in the French-English relationship, focusing on the wardrobe instead of the new Entente Formidable ;-)
London has become the 7th French city in the world...