(Update: Today (Jan 6) Volkswagen shares up 12%.)
On Monday Porsche purchased for 6.1 billion euros Volkswagen shares and VW shares still closed down 1.7 percent.
If I would want to burn myself financially then I would hold on to VW shares.
Volkswagen shares closed on Monday at € 254.74.
– Société Générale analysts Eric-Alain Michelis and Philippe Barrier (23.12.08): “Sell” – VW target price € 130
– Deutsche Bank analyst Jochen Gehrke (17.12.08): “Sell” – VW target price € 70
“A Porsche spokesman confirmed that the sports car maker still planned to increase its stake in VW to 75 percent at some point this year.” I would not bet on that because 2009 will be a catastrophe.
Consider that this economic crisis will get much, much worse. Porsche shares PSHG_p.DE will continue to go down. The small rally in the stock markets will be short-lived because it is based on ‘hope’, ‘believe’ and devastating stimulus packages. Keynesianism is so outdated and wrong.
The US economy will go into a dramatic depression and China will have big problems because of that.
The EU economy already is in trouble and a failing US dollar, economy and government will not make things much better. Who will be able to buy cars then?
Car sales have already dropped tremendously and will continue to do so everywhere. People will just not be able to buy a ‘Golf’ or even a ‘Polo’ in the future – not to mention a Porsche 911.
Afterwards everyone will say that this observation was obvious. It is.
FRANKFURT (Reuters) – Germany’s Porsche Automobil Holding SE (PSHG_p.DE) has raised its stake in Volkswagen (VOWG.DE) to more than 50 percent, triggering a mandatory takeover offer for Sweden’s Scania AB (SCVb.ST) as a result.
Porsche’s purchase of further ordinary shares in Volkswagen means it now holds a 50.76 percent stake, Porsche said on Monday. It held 42.6 percent previously.
The additional stake of 8.16 percent was worth about 6.1 billion euros ($8.49 billion) on the stock market on Monday, according to Reuters calculations, considering that Volkswagen shares closed at 254.74 euros, down 1.7 percent.