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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: ggersh who wrote (24704)11/24/2009 8:01:47 AM
From: RockyBalboa  Read Replies (1) | Respond to of 71423
 
That´s right the VW stock is a "broken stock" but what is indeed amazing is that it deflated more than 90% from the peak without any meaningful reaction, so far.

There are a load of derivative certificates on the stock outstanding after those ones with prices ranging from 250 to 100 have been knocked out. Once the remaining are knocked out and the issuance of short certificates dominates then the stock could rise very hefty... I am measuring this and also the relative development to the widely traded preferred stock to get a clue when to buy.

(but since markets often overdo extreme movements it could become severely undervalued before that happens. Fundamentally the stock is perhaps fairly valued here).

The original idea however was a short when things started to unfold:
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