| Date | Open | High |
|---|---|---|
| Oct 29, 2008 | 527.03 | 597.96 |
| Oct 28, 2008 | 484.52 | 978.92 |
| Oct 27, 2008 | 365.86 | 604.16 |
| *Close price adjusted for splits.**Adjusted close price adjusted for splits and dividend and/or capital gain distributions. | ||
What was the short interest in Volkswagen in 2008?
Mar 02, 2021 · This disparity caused short sellers to rush to buy more stock to cover their positions, driving the stock price further still through October 2008, with VW stock price now hovering just above €900, and at one point exceeding €1,000 in intraday trading.
Why did Volkswagen’s stock rise so high?
Oct 29, 2008 · Volkswagen stock, which rose to above 1,000 euros, or to about $1,284, at one point on Tuesday, plummeted on Wednesday to close at 517 euros. That is still well above its close Friday of 210 euros.
How much of Volkswagen did Porsche own in 2008?
Sep 29, 2021 · Short sellers still trying to close out their positions ended up paying up to €1,005 per share, which in turn put VW’s voting stock at a hefty €296 billion, exceeding the $343-billion market capitalisation commanded by the world’s incumbent top company at the time, ExxonMobil.
What is the all-time high of Volkswagen AG stock price?
Feb 03, 2021 · Dissimilar to Volkswagen's 2008 escapade, the modern-day short squeeze was more dramatic. Most hedge funds covered their positions, and some even went so far as to swear off shorting from here on out.
What was VW highest stock price?
Whatever the case, the stock markets are confident the company will succeed - VW's stock briefly touched €1,005 ($1,261) yesterday, making the company the most valuable in the world at roughly €295 billion, or $369 billion, temporarily exceeding Exxon-Mobil's $343 billion market capitalization.Oct 28, 2008
How much did Volkswagen go up in 2008?
On 27 October 2008, Volkswagen's shares opened at €348 and closed at €517 – a rise of almost 150%. By Tuesday, the stock peaked at €999 per share, while short-selling costs were estimated to be in the tens of billions.May 7, 2021
What happened to the Volkswagen stock in 2008?
After the stock's peak on Oct. 28, 2008, it plunged 58% in four days and by September that year, the shares were down 70% from their top, giving away most of the squeeze.
How long did VW peak in 2008?
Let's Talk About the VW Short Squeeze It's not just from big money and institutions. For a brief moment, on October 28th, 2008, Frankfurt-based company Volkswagon (VW) saw its shares more than quadrupled in two days. With that monster move, VW briefly became the biggest company in the world. Yes, the world!Mar 2, 2021
How high did VW stock go during the short squeeze?
Short sellers still trying to close out their positions ended up paying up to €1,005 per share, which in turn put VW's voting stock at a hefty €296 billion, exceeding the $343-billion market capitalisation commanded by the world's incumbent top company at the time, ExxonMobil.Sep 29, 2021
Why did Volkswagen stock drop?
Why the Stock Is Falling. Volkswagen stock slipped into reverse early on Thursday, as the German automobile giant posted solid earnings and strong electric-vehicle sales but warned the impact of the chip shortage was set to worsen.May 6, 2021
What was VW short interest in 2008?
In October 2008, a short squeeze triggered by an attempted takeover by Porsche temporarily drove the shares of Volkswagen AG on the Xetra DAX from €210.85 to over €1000 in less than two days, briefly making it the most valuable company in the world.
What is the biggest short squeeze ever?
The biggest short squeeze in history was the short squeeze that happened to Volkswagen stock in 2008. What is becoming very interesting with the rise of social media is crowdsourcing investing decisions, sometimes to short squeeze, as the world recently saw with the 2021 Gamestop (GME) rally.
How much did short sellers lose on GameStop?
GameStop Short Sellers Extended Losses To $6.5 Billion In August.Sep 9, 2021
What's the fastest a stock has risen?
Largest daily percentage gainsRankDateChange%11933-03-15+15.3421931-10-06+14.8731929-10-30+12.3417 more rows
Explaining the Volkswagen short squeeze of 2008
Around 2006, Porsche decided that it wanted to get more voting rights and decision-making power as a Volkswagen business partner. The company ensured this through investments. After purchasing Volkswagen shares in swarms, the stock started to steadily increase over a few years by hundreds of a percent.
How long the Volkswagen short squeeze lasted
The bulk of the Volkswagen short squeeze lasted just four days, after which shares had fallen 58 percent from their peak. However, it took weeks for VW stock to falter enough for most of the squeeze to have been returned to hedge funds at last.
A visual chart of the Volkswagen short squeeze
Here, you can see that the Volkswagen share price faltered to about the same level that it was at 60 days before the peak, and it only took another 60 days to do so. We have yet to see how things with GameStop (and other squeezed stocks from early 2021) will play out.
The Volkswagen short squeeze puts GameStop into perspective
One of the hedge funds that shorted GameStop ("GME" on the NYSE) is called Melvin Capital. Over the course of January 2021, Melvin lost a massive 53 percent of its assets under management. Most of the loss impacts wealthy investors, but it also impacts pensioners operating under the hedge fund.
Why do short sellers buy back shares?
However, when the stock jumps sharply higher, it forces short sellers to buy back shares in order to limit their losses , which leads to a so-called short squeeze.
When is GameStop 2021?
People walk past a GameStop store in Midtown Manhattan on January 27, 2021 in New York City. Michael M. Santiago | Getty Images. Volkswagen often comes to mind when investors try to find a short squeeze comparable to GameStop ’s jaw-dropping spike last week.
How much was Volkswagen short interest in 2008?
But even by October of 2008, the short interest seemed not-too excessive. It stood at just 12.8% of outstanding shares being short.
What was the automotive industry in 2008?
The Automotive Industry In 2008. For reference, in 2008, the whole auto sector was considered to be a pretty sexy short trade. Up until 2008, General Motors had been the largest automaker in the world for literally over 70 years. I mean, damn. That’s a long run.
What is short squeeze?
In short form (not a pun) – A short squeeze is when a stock aggressively increases in price causing short sellers to have to cut losses and exit their positions, inadvertently further driving up the price per share of said stock.
Did Porsche drop a short position?
To make sure short sellers understood the urgency of the sitch, Porsche drop ped a statement to address the short position. They said that they had… “decided to make this announcement after it became clear that there are by far more short positions in the market than expected.” “The disclosure should give so called short sellers – meaning financial institutions which have betted or are still betting on a falling share price in Volkswagen – the opportunity to settle their relevant positions without rush and without facing major risks.” So… Problem solved, right? Wrong! The statement pretty much had the opposite of a disarming effect. And well… do you really think their goal was to calm everyone down?
How much does Porsche own Volkswagen?
On Sunday, Porsche said it raised its stake in Volkswagen to 42.6 percent from 35 percent, and that it had taken options for another 31.5 percent.
What is Porsche's strategy?
Its strategy has been to make a creeping takeover of the company, purchasing options or shares in the open market and later announcing its new shareholding level in the company.
Who is the CEO of Glenview?
One hedge fund manager, Larry Robbins, the chief executive of Glenview, wrote to investors last week that his fund had shorted the stock. “Fundamentally, things look bleak for the global automotive industry,” Mr. Robbins wrote.
Is VW a German company?
Volkswagen is one of the 30 companies in the DAX index, Germany’s most prominent stock index, and index funds own a significant number of shares. Those funds, however, may sell shares Wednesday. On Tuesday night the German stock exchange said it would reduce from 27 percent to 10 percent the weighting of VW in the index.
Does Volkswagen own Scania?
Image. Volkswagen has a deal that would force Porsche to take control of the Swedish truck maker Scania, if it takes a majority stake in VW. That could cause Porsche to stop buying stock. Hedge funds had used several strategies in VW shares. One was to exploit the difference in value between two classes of Volkswagen stock.
What happened in 2008?
In 2008 the economy entered a tailspin, threatening to take many auto manufacturers with it. Consumers no longer had access to the cheap and easy credit that made SUVs affordable, and even those who had jobs and money to spend wanted to more environmentally-friendly vehicles with better fuel economy.
Is Volkswagen a hybrid?
Volkswagen was famously reluctant to add a hybrid engine powertrain to its product line up, which is more expensive to research and manufacture. Instead it preferred diesel engines as the environmentally responsible solution, which it already sold in high volumes throughout the rest of the car-buying world.
