Porsche’s Short Squeeze

The CFO over at Porsche must be a genius.  He practically cornered the market on Volkswagen stock, making a move that caused the VW stock price to jump from 210 Euros/share to 918 Euros/share in less than a week.  In 2008, Porsche booked $11.6B in profits with only $10.2B in sales revenue.  Yes, you read that correctly.  Porsche profit exceeds 100%!

There is a dark side to this story, however.  German billionaire Adolf Merckle lost at least a half a billion Euros as a result of being caught in Porsche’s short squeeze of VW stock.  He recently committed suicide and some are claiming that his financial losses were a key factor.

Photo credit celsydney.

Share it...