Volkwagen's Stock Climbs An Amazing 42% In 4 Days!

Volkswagen closed at a record of 304 euros a share Thursday, up 42% since Monday.

The cause of that share performance remains unclear as the two main potential buyers, Porsche Automobil Holding and the German Federal State of Lower Saxony, both ruled themselves out as buyers.

Some traders have a theory: the fall of Lehman Brothers Holdings.

Lehman was a big lender of VW stock to hedge funds, traders say. Hedge funds were using borrowed VW ordinary stock to place bets that the shares would fall, part of a so-called short-selling strategy. In the trade, hedge funds sold the borrowed stock in the market hoping the price would fall so that they could repay with lower-priced shares and pocketing the difference. A spokesman for Lehman declined to comment.

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Agent009 - 9/19/2008 12:58:37 PM

+1 Boost

You can dig a ditch for a living, or day trade stock for a living. Both are work but require different skill sets.

M35MT - 9/19/2008 12:32:13 PM

+1 Boost

The U.S. Securities and Exchange Commission announced today to prohibit short selling in 799 financial company stocks. The action, taken in concert with the U.K.'s Financial Services Authority, is effective immediately.

U.S. regulators said the short-selling ban will run for ten days, through Oct. 2, but may be extended for up to 30 calendar days if the SEC deems that is necessary to protect investors.

uall - 9/19/2008 12:58:13 PM

+3 Boost

And the Porsche Family gets richer and richer

mmeecc - 9/19/2008 5:57:53 PM

+3 Boost

Agent 009

The big difference is, if the average ditch digger f*#@ up at work and his company goes under....nobody's gonna come and bail him out.
Again, these guys play all they want with other people's money, and if something goes wrong, the ditch digger's tax money will bail the stock trader out.
I wonder if stock trader money would have bailed the auto worker's out.....

Hmmmmm.....let me see....

Awlmine1 - 9/26/2008 11:17:13 AM

+1 Boost

to mmeecc,
Then I would suggest .... "Get out of the trenches". You should have stayed in school...

mmeecc - 9/30/2008 12:36:04 PM

+1 Boost

to Awlmine1

You have no idea who I am and what my credentials are. But that doesn't change the fact that I know the difference between right and wrong, and this is "da@*" wrong. Maybe you need to get in the "trenches" a little and learn some humility you "genius".