Comments on: Porsche “a hedge fund with a captive automotive business?”

By: Steven Lang

Steven Lang — Tue, 17 Jul 2007 03:17:54 +0000

Every international auto manufacturer uses derivatives to minimize currency risk. This is nothing new.

By: seldomawake

seldomawake — Tue, 17 Jul 2007 02:40:04 +0000

This may be a stupid question, but what are the odds that parts-sharing will allow me to buy a People’s Porsche?

By: turkeey

turkeey — Sat, 14 Jul 2007 08:00:49 +0000

I agree with farside808. Even if you don’t own the underlying security, derivatives are great ways to protect against exposure to uncertainties and catastrophic loss (and doing so comes relatively cheap).

By: farside808

farside808 — Fri, 13 Jul 2007 20:36:33 +0000

Buying derivatives is only risky if you don’t own the underlying security. Seeing as how Porsche actually owns a chunk of VW, and they have exposure with exchange rates, buying derivatives is actually a pretty smart move – kinda like buying insurance. oh…those wacky Germans!

By: AKM

AKM — Fri, 13 Jul 2007 17:41:22 +0000

They don’t need to merge. They can just sit on that nice pile of money, possibly selling some back for development costs of their next big thing.
They may also need that money of the Panamera tanks. Given what we saw about its styling, it may very well be a dud…

As for derivatives, they can be used to hedge risks by decreasing currency exposure. Given the new heights the euro is reaching, I’d be tempted to do the same…

By: saabophile

saabophile — Fri, 13 Jul 2007 15:44:14 +0000

2.1b for 31% isn’t bad, sounds like Porsche should just bite the bullet and merge.

By: Sajeev Mehta

Sajeev Mehta — Fri, 13 Jul 2007 13:47:45 +0000

Porsche is diving into derivatives? That’s pretty risky business.