tag:blogger.com,1999:blog-8152901575140311047.post3824116866751174180..comments2024-03-29T03:33:47.317-04:00Comments on Musings on Markets: Another strange incident... in a market full of anomalies!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8152901575140311047.post-83176537430163756042008-11-04T15:04:00.000-05:002008-11-04T15:04:00.000-05:00Hi Prof... I found your blog from your site... I'm...Hi Prof... I found your blog from your site... I'm a really passionate value investor since 3 yrs (i'm 20 yrs old) and I just want to compliment and to thank you for all the materials, data and works available on your site...<BR/><BR/>Maybe when I'll finish the university here in Italy, I'll try to escape form this crazy country and meet you personally in NY..<BR/><BR/>Good WorK!I'd like to be a sheephttps://www.blogger.com/profile/00189541616567547890noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27084497122807325352008-10-31T07:32:00.000-04:002008-10-31T07:32:00.000-04:00Hi Prof,Funny you did a story on that cause I have...Hi Prof,<BR/>Funny you did a story on that cause I have a same piece on my blog at<BR/>http://padedoh.wordpress.com/2008/10/29/a-short-squeze/#more-710<BR/><BR/>Anyhow,I did a quick calculation up to the 29th and estimated the loss to be about USD 17 billion. The basis was that all buying from<BR/>the 27th till the 29th was short covering, and the average short price was at 250 Euros.<BR/>However, as I blog Volkswagen is still trading at 543 euros, but the volume is significantly lower. My question is, when the short covering is done, will<BR/>a) there be a collapse in the share price?<BR/>b) will Porsche book this gain by selling of their investment<BR/>c) with a capital loss in the region of 20 - 30 billion USD, much greater than the capital of the hedge fund(s), will the prime broker have to foot the bill<BR/><BR/>Thanks, and to all readers who venture to padedoh, welcome there.<BR/>Wenger J KhairyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40985799049730083082008-10-31T01:11:00.000-04:002008-10-31T01:11:00.000-04:00Hedge funds cryig foul....what a joke!Wasn't it kn...Hedge funds cryig foul....what a joke!<BR/><BR/>Wasn't it known in advance that German regulations are not so stringent about disclosure norms as US or UK is? So wasn't that an inherent risk in the short sell strategy?<BR/><BR/>Taking a naked bet especially on the downward move on a stock which is thinly traded in public, carries a huge risk - improbable may be but not impossible. There's more to markets than mere modeling, automated execution and stop losses even in normal times and all the more so in panic times.Mahesh Sethuramanhttps://www.blogger.com/profile/01909074683189926487noreply@blogger.com