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Porsche-VW short squeeze (2009)


Liberty
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Interesting considering the SHLD squeeze from yesterday...

 

http://www.outfoxthestreet.com/2008/10/is-sears-holdings-shld-next-vw.html

 

All this brings me to the story regarding Sears Holdings (SHLD). Most people commonly know it as the owner of retail gians Sears and KMart or by it's valuable brands like Craftsman or Kenmore. Neither retail operation is very impressive anymore so why would we care about the stock? Many reasons exist because of the valuable brands they control, but more importantly because SHLD is one of the largest commercial real estate owners in the US. As a owner of 250M square feet of valuable mall real estate with limited debt, SHLD has a very valuable asset that isn't being recognized by the market.

 

 

http://radian.org/notebook/porsche

 

From 2009, for those who missed it back then. nice move.

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Strange that there would be no disclosure requirements for Porsche as they built up their position. Or, did they simply break the rules?

 

No sure what the rules are in Germany. Anyone from Europe knows?

 

They built up their position through one or more large banks acting on their behalf.  Their actions were concealed until they had the squeeze.  This is legal in Germany, and possibly in other countries of the EU.

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I am waiting to see this kind of squeeze for Ebix.

 

If it happens it won't be as crazy because they can't do the buybacks secretly and blindside the shorts, but with the amount of the float that is sold short, a short squeeze would probably still be pretty dramatic. I'd love it if it happened too!

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