View Poll Results: How low will the Hang Seng Index go?

Voters
75. You may not vote on this poll
  • 18000

    0 0%
  • 17000

    2 2.67%
  • 16000

    11 14.67%
  • 15000

    7 9.33%
  • 14000

    7 9.33%
  • 13000

    6 8.00%
  • 12000

    15 20.00%
  • 11000

    2 2.67%
  • 10000

    4 5.33%
  • below 10000

    21 28.00%

Poll: How low will the market go?

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  1. #91

    Join Date
    Oct 2007
    Posts
    1,896
    Quote Originally Posted by pinko:
    Edit: oh, I guess the problem is that the Hedge Funds have soon to return the money to the banks they borrowed the shares from, so they are all panicky? But still, why did Porche decide to inform everybody about their VW shares now?
    Long story short, there is a lot o struggle between VW and Porsche. VW - especially it's employees who have representatives on the board - feel like the takeover is going the wrong way. Porsche has 12000 employees, Volkswagen - with its Audi, Seat, Skoda, Lamborghini etc etc branches - has >300000. Originally, everyone expected it to become a friendly takeover (since Porsche is family controlled and not so dependent on the capital markets) but it has become a rather sour relationship. I think Porsche wanted to send a signal that says 'give up'...

  2. #92

    Join Date
    Feb 2008
    Posts
    186

    Thanks. And why does Porsche have so much money it can buy VW??


  3. #93

    Join Date
    Jun 2008
    Location
    Kowloon
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    1,184
    Quote Originally Posted by pinko:
    Thanks. And why does Porsche have so much money it can buy VW??
    Porsche had been doing rather splendidly. Lots of sales to emerging markets such as Russia, China, India etc where rapidly growing wealth meant expensive status symbols were the ‘must have’ items for the newly rich. Plus it had negotiated credit lines at decent rates before credit dried up.

  4. #94

    Join Date
    May 2006
    Location
    Pampanga, Philippines
    Posts
    29,764

    limepickle, you sound like you actually know what you're talking about. You sure you are on the right site?


  5. #95

    Join Date
    Jun 2008
    Location
    Kowloon
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    1,184
    Quote Originally Posted by hullexile:
    limepickle, you sound like you actually know what you're talking about. You sure you are on the right site?
    It's my line of work (although, for the record, I'm not a so-called fat cat with massive guaranteed bonus, giant housing allowance etc.)

  6. #96

    Join Date
    Oct 2005
    Posts
    327
    Quote Originally Posted by limepickle:
    Porsche had been doing rather splendidly. Lots of sales to emerging markets such as Russia, China, India etc where rapidly growing wealth meant expensive status symbols were the ‘must have’ items for the newly rich. Plus it had negotiated credit lines at decent rates before credit dried up.
    Porsche is projecting a huge drop in sales in the coming years due to the failures in Russia, coming failures in China, and the drying up of sales in India... so let's see how well they do.

  7. #97

    Join Date
    May 2006
    Location
    Pampanga, Philippines
    Posts
    29,764
    Quote Originally Posted by tvrlover:
    Porsche is projecting a huge drop in sales in the coming years due to the failures in Russia, coming failures in China, and the drying up of sales in India... so let's see how well they do.
    And there was me thinking Mr Doom had gone away....been missing the hourly updates on the HSI.

  8. #98

    Join Date
    Jun 2008
    Location
    Kowloon
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    1,184
    Quote Originally Posted by tvrlover:
    Porsche is projecting a huge drop in sales in the coming years due to the failures in Russia, coming failures in China, and the drying up of sales in India... so let's see how well they do.
    The drop in sales in emerging markets is well in the price already. But they won't sell many Porsches to hedgefund mangers for a while I'm sure. Given that they are sitting on a €45bn paper gain from their original 35% stake VW alone *and* hedgefunds (that are still alive) will most likely have to buy Porsche stock (albeit hate trades) to follow their money, unless they get hit by the regulators, Porsche stands to win big from all this.

    Get this fact fans - in 2006/07, Porsche made €3.6bn from VW options and €1bn from making cars. Their CFO should work for an investment bank, I reckon.

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