how much was volkswagen stock in 2008

What was the short interest in Volkswagen shares in 2008?

 · By late 2008, short positions were 12 percent above outstanding shares. But since most of Volkswagen's shares were reserved for institutional and governmental shareholders, there was a disparity ...

How much of Volkswagen did Porsche own in 2008?

 · 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.

Is Volkswagen (VW) stock overvalued?

102 rows · Discover historical prices for VWAGY stock on Yahoo Finance. View daily, weekly or monthly format back to when Volkswagen AG stock was issued. ... Volkswagen AG (VWAGY) Other OTC - Other OTC ...

How much did hedge funds lose in the Volkswagen share market?

 · After Volkswagen’s peak on Oct. 28, 2008, the shares fell 58% in four days, and a month later the stock was down 70% from its top, giving back most of the squeeze, according …

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 · 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 …

What did Volkswagen hit 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!

Why did Volkswagen stock go up in 2008?

In 2008, Porsche gobbled up so much Volkswagen's stock it caused VW's stock prices to soar, which similarly caused short sellers to lose tens of billions of dollars in a span of a couple days. The result of the current short squeeze could be increased regulations over retail traders.

What was Volkswagens highest stock price?

At the end of trading yesterday, VW's share price closed at €675 ($847), a gain of 33% on the day, but not enough to hold onto the title of world's largest company by market capitalization. The secret to VW's earlier valuation success, say the analysts, lay in its successful hedge-fund trading strategies.

How long were VW shares 1000?

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.

How high did VW stock go during the squeeze?

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.

How high did Volkswagen shares get during squeeze?

Panic among short sellers set in, and the supply-demand imbalance triggered a monumental short squeeze that drove its share price up from €210.85 to more than €1,000 in less than two days. Indeed, Volkswagen became the world's largest company by market value on October 28—albeit, very briefly.

When did VW stock split?

The first split took place 17 March 1969 at a ratio 1:2 (from DM 100. - to DM 50. - share). The second split was carried out on 6 July 1998 at a ratio 1:10 (from DM 50.

Is VW stock a buy?

VWAGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.03, while its industry has an average P/E of 11.56. Over the past 52 weeks, VWAGY's Forward P/E has been as high as 14.65 and as low as 7.11, with a median of 9.08.

Why did Volkswagen stock go up?

The company saw a sudden boost in share price after its announcements in March of rivaling Tesla TSLA -0.8% in the electric vehicles segment. The company announced that it plans to build six battery factories and sell more EVs than Tesla no later than 2025.

When did Volkswagen stock squeeze?

2008The biggest short squeeze in history occurred in 2008 when Porsche embarked on an unexpected series of maneuvers that left it controlling a huge percentage of Volkswagen's (VW) stock. This briefly made VW the most valuable listed company in the world.

What was VW market cap during short squeeze?

Consequently, Volkswagen became the world's most valuable company as its market capitalization rose to $370 billion in two days. VW's hefty market cap exceeded the $343 billion market cap commanded by ExxonMobil (NYSE: XOM), the world's incumbent top company at the time.

How high can a short squeeze go?

If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.

How much did VW lose from shorting?

What happens if you short VW stock?

Ultimately, those hedge funds that had shorted VW stock ended up losing an estimated $30 billion from their trades. “I have had hedge fund managers literally in tears on the phone,” said one London-based analyst on the 29th, whilst other hedge-fund managers reportedly compared the Porsche disclosure to a “nuclear bomb going off in our faces”, describing the resulting losses as “a bloodbath”.

When did Porsche short squeeze Volkswagen?

But with around 12 percent of VW’s outstanding shares sold short, it was impossible for every short seller to buy back their required shares and close out their positions. As such, a massive imbalance between supply and demand for VW stock emerged.

Did Porsche make money?

The entire episode harkens back to the days of October 2008, when Porsche inflicted a similar short squeeze on Volkswagen (VW), its fellow automaker and occasional but long-running business partner. Indeed, right in the midst of the global financial crisis (GFC), when following the collapse of Lehman Brothers investors were panic selling across the world and markets were tanking, the “mother of all short squeezes” arose, as one analyst at the time put it.

How much did Volkswagen stock fall in 2008?

But Porsche was able to make huge sums of money, which is even more startling given how badly the automotive industry was doing at the time. Reports emerged of angry traders raging at what they perceived to be a Blitzkrieg attack by Porsche on the financial system, seemingly allowed by German regulators, which permitted it to secretly accumulate VW stock options without having to declare its hand.

Why do short sellers buy back shares?

After Volkswagen’s peak on Oct. 28, 2008, the shares fell 58% in four days, and a month later the stock was down 70% from its top, giving back most of the squeeze, according to FactSet. So far for GameStop, the stock tumbled 30.8% to $225 apiece Monday from Friday’s close of $325.

How much of VW did Porsche own in 2008?

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 did VW become the biggest company in the world?

By late 2008, short positions ballooned. The kicker was that Porsche owned 43% of VW shares, 32% in options, and the government owned 20.2%. As you can see, this left very little that could be purchased by anybody else.

How long did the VW short squeeze last?

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!

How much did hedge funds lose in VW?

Have you heard of the VW short squeeze of 2008? It lasted four days and fell 58% from its high. Hedge funds took weeks to recover from that. For those of you following the hype of GameStop the last number of weeks, it might have felt erringly familiar. That’s because it has happened before. If you were around for the 2008 VW short squeeze, you know what I’m talking about. But first, we need to talk about short selling, so you don’t get yourself caught in the dreaded short squeeze.

Why did Porsche make the announcement?

Hedge funds lost $30 billion in the VW squeeze. Within four days, the stock dropped in price by 58%. A similar phenomena happened with GameStop where hedge fund shorts got caught in a squeeze. Overall it cost them billions.

When did Porsche buy VW?

Porsche stated 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.”

Did Porsche invest in VW?

In 2008, Porsche bought up so much of Volkswagen’s stock it caused VW’s stock prices to soar.

How many cylinders does a 2008 Volkswagen Jetta have?

To do so, they invested and invested heavily, purchasing VW’s shares by the boatload. Predictably, the stock price started to rise steadily over the years.

What is the engine in a 2008 Volkswagen GLI?

A four-door sedan with seating for five, the 2008 Volkswagen Jetta Sedan has renamed its trim levels to S, SE, and SEL, all of which come standard with an efficient 2.5L four-cylinder engine good for 29 mpg highway.

What engine does the 2008 R32 have?

The 2008 Volkswagen GLI is a sporty version of the Jetta sedan, thanks to the 200 hp turbocharged 2.0L four-cylinder engine and a more stand-out style.

How many HP does a 2008 GTI have?

The popular and sporty two-door hatchback 2008 Volkswagen R32 is back for another year after its US debt in 2004, and now comes equipped solely with the DSG transmission which is mated to a 250 hp 3.2L six-cylinder engine.

What is a 2008 Volkswagen EOS?

A sporty hatchback available in two or four-door bodystyles, the 2008 Volkswagen GTI is powered by a turbocharged four-cylinder engine which produces 200 hp, and is offered with a manual or VW's DSG gearbox.

How many seats does a 2008 Passat have?

A two-door hardtop convertible with seating for four, the 2008 Volkswagen Eos is a sporty car with a solid fit and finish that is built for top-down motoring on a sunny day.

What is a 2008 Passat?

A mid-size sedan with seating for five , the 2008 Volkswagen Passat Sedan is revamped its trim levels to Turbo, Komfort, Lux and VR6, all of which now come standard with a 12-way adjustable power drivers seat.

What percentage of VW shares will Porsche dump?

The 2008 Volkswagen Passat Wagon is a people mover that is also ready to haul some cargo at the same time, and now comes standard with a 12-way adjustable power drivers seat.

Who is Porsche's chief financial officer?

Porsche said it would dump up to 5 percent of its VW shares — presumably at a great profit — “to avoid further market distortions and the resulting consequences for those involved.”. 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.

What is the Porsche episode about?

Porsche’s financial strategy of securing control over Volkswagen has been the brainchild of its chief financial officer, Holger P. Härter, who sits on the larger company’s board. The Schaeffler Group, a maker of roller bearings, used a similar approach to seize control of Continental, one of the world’s largest auto parts makers, this summer.

Is Porsche taking over VW?

The episode highlights how Porsche, the sports car manufacturer that keeps investment bankers and hedge fund managers moving at high speeds down the world’s highways, beat both at their own game.

Is Porsche a family owned company?

Porsche, which has engaged in a creeping takeover of Volkswagen over several years, unleashed a punishing market dynamic this week on investors who believed VW stock would lose value if Porsche took majority control.

Does Porsche have to disclose cash options?

Porsche and Scha effler are family-controlled companies, a fact that appears to have limited the political fallout from the rough-and-tumble tactics. Porsche is often held up by German critics of American-style capitalism as a company that makes enviable profits while paying its workers a premium wage.

Is Porsche a wrongdoer?

German law does not require Porsche to reveal details of the price at which it bought the cash options, or the strike price at which they can be exercised, the two main variables in the profit calculation.

How much was Volkswagen short interest in 2008?

Porsche, whose own shares jumped Wednesday by 37 percent, flatly denied any wrongdoing. “Porsche has not been active in the market during these share price movements,” it said. “Allegations of price manipulation by Porsche are therefore without foundation whatsoever.”

Why did index funds hold Volkswagen?

But even by October of 2008, the short interest seemed not-too excessive. It stood at just 12.8% of outstanding shares being short.

How much did Porsche lose in the Volkswagen short game?

With this, index funds made up around 5% of Volkswagen share ownership due to VW’s big ol’ weighting in the DA X index. So all these index funds were required to hold Volkswagen in proportion to its weight in the DAX, of course.

What was the automotive industry in 2008?

Porsche pretty desperately needed money at this time, so this move was more valuable than you know! On the flip side of this action, the hedge funds who had been playing the Volkswagen short game saw losses that exceeded $30 billion.

When did Porsche take a swing in the world of financial maneuvers?

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 happened to 12.8% short interest?

This was, and still is considered, the biggest short squeeze in history! In late 2008, amidst the global financial crisis: Porsche took a swing in the world of financial maneuvers. After a series of clever, intense moves, this all set the path moving for Volkswagen to briefly become the most valuable company in the entire world.

Did Porsche own Volkswagen?

Now all of a sudden, the seemingly little short interest of 12.8% turned into an immediate, MASSIVE supply and demand imbalance. Millions of shares needed to be bought immediately even though there were no shares available to be sold.

Why did the stock market crash in 2008?

Before the madness that was 2008: Porsche had been a huge shareholder in Volkswagen. Then, come October of 2008: They took their already thick stake to 30%

What was the cause of the 2008 stock market crash?

The Dow Jones Industrial Average fell 777.68 points in intraday trading. 1 Until the stock market crash of 2020, it was the largest point drop in history. The market crashed because Congress rejected the bank bailout bill. 2 But the stresses that led to the crash had been building ...

What was the Dow's intraday low in 2008?

The stock market crash of 2008 was as a result of defaults on consolidated mortgage-backed securities. Subprime housing loans comprised most MBS. Banks offered these loans to almost everyone, even those who weren’t creditworthy.

What happened in October 2008?

The Dow dropped to an intraday low of 11,650.44 but seemed to recover. In fact, many thought the Bear Stearns rescue would avoid a bear market . By May, the Dow rose above 13,000. 1 It seemed the worst was over. In July 2008, the crisis threatened government-sponsored agencies Fannie Mae and Freddie Mac.

What was the GDP growth in 2007?

The month began with more bad news. The Labor Department reported that the economy had lost a staggering 240,000 jobs in October. 29  The AIG bailout grew to $150 billion. 30  The Bush administration announced it was using part of the $700 billion bailouts to buy preferred stocks in the nations' banks. 31  The Big Three automakers asked for a federal bailout. By Nov. 20, 2008, the Dow had plummeted to 7,552.29, a new low. 10  But the stock market crash of 2008 was not over yet.

When did the Dow go up in 2009?

At the end of January, the BEA revised its fourth-quarter 2007 GDP growth estimate down. 6 It said growth was only 0.6%. The economy lost 17,000 jobs, the first time since 2004. 7 The Dow shrugged off the news and hovered between 12,000 and 13,000 until March.

When did the stock market recover?

Soon afterward, President Barack Obama's economic stimulus plan instilled the confidence needed to stop the panic. On July 24, 2009, the Dow reached a higher plane. It closed at 9,093.24, beating its January high. 34 For most, the stock market crash of 2008 was over.