volkswagen (VW) was back on planet earth last week ... and is in the stock heaven again :o)) => update on last week's post:
as the stock markets stabilized a little and there are not many margin calls in the books of speculators like me (or some heavily capitalized hedge funds :-), these evil guys can hold and increase their VW shorts and bring its share price back to a more realistic level – in the last few days lost VW about 50% of its (over-)value as its share price fell from 430 to 210 €uros .... yesterday porsche announced that it will increase its share @ VW and today started VW with a 70% gap up and rose more than 200% to €635. closing price was 520 euros, a daily gain of 146.62%. next day (28.10.2008) the same game => VW rose in less than a hour from €471 to €1,005 and closed @ 945 euros, which is 81.73% more than yesterday. its market capitalization? 277.83 billion euros, it is the most 'valuable' company now ... that's a short-squeeze, isn't it?
the possible reasons for that crashy overall market developments? see my older blogpost.