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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: The Reaper who wrote (160722)	10/28/2008 12:06:22 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

Was anyone looking out for the shareholder?

To: The Reaper who wrote (160722)	10/28/2008 12:44:26 PM
From: butschi2	Read Replies (2) \| Respond to of 306849

Porsche has 43% of VW-Float and around 31% in call options (cash settlement) add to this 20% owned by Lower-Saxony and the float is really small coupled with around now 20% weight in the DAX and index funds in need to own VW. All other people than Porsche, Lower-Saxony or Index-Positions in need of VW-shares will sell now. 15% of the float have been short, the short positions and the options writers will get killed. The short positions should have been killed already and the options writers being at the mery of Porsche. If Porsche can call the cash settlement of the options every day the closing price of Porsche will determine the future of their counterparties. The counterparties should be big banks/investment banks. I would expect many banks not fully covered with long VW-Shares. Porsche is on the long handle and can kill the options writers if short the call options without VW-Shares. Because of cash settlement Porsche doesnt need to finance the called options and can just pocket the cash difference and this difference may be HUGE. Big squeeze on a gigantic scale, normally only seen in shares of small opaque firms.