Shares in Volkswagen have hit incredible heights as Porsche prepares to take over Europe's biggest carmaker because speculators who bet the auto stock would slump have been burned, analysts say.
VW shares spiked by 93.27 percent to 1,005.01 euros in early morning trading on the Frankfurt stock exchange Tuesday in an ongoing reaction to details from Porsche on how it planned to take over the company.
"What we have seen this week is definitely short covering," UniCredit equity analyst Christian Aust told AFP.
"Nobody else would buy Volkswagen shares at those prices. It doesn't make any sense."
Once the dust had settled around VW, Aust forecast: "We'll see a drop of course, but its not falling back to the 150-200 euro level."
Full Disclosure: My family once owned a VW :-)
2 comments:
Were your parents hippies?
Just kidding
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