VW stock goes from 170 to almost 100 and falling, good time to buy?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

VW stocks are crashing... I think itll crash a lot more before it stabilizes.

My question is ... think it maybe a good idea to buy when it bottoms out?
Risk wise, is it possible itll bankrupt after all the penalties, fines, recalls and reputation damage? If not, then it seems like it would be a good long term buy "cheap" once it bottoms out?
YttriumNitrate
Posts: 1093
Joined: Tue Mar 26, 2013 12:13 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by YttriumNitrate »

The "trying to catch a falling knife" analogy seems appropriate in this case. From an investing point, a low mileage unmodified VW diesel might turn out to be an interesting collectors item for car enthusiasts out there.
User avatar
Phineas J. Whoopee
Posts: 9675
Joined: Sun Dec 18, 2011 5:18 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Phineas J. Whoopee »

CodeMaster wrote:...
My question is ... think it maybe a good idea to buy when it bottoms out?
...
How will you recognize when it has bottomed out? We'll be able to tell in hindsight, but not in real time. The bottom for shareholders could be zero, but then, at least, you'd be able to buy an infinite number of shares. :happy

I think buying right now amounts to speculating on the outcome of several lawsuits, at least, and actions by many governments, and even if it survives those well enough to remain in business, speculating on its future earnings after all the reputational damage.

There could be a VW-Audi in the future that is reconstituted in bankruptcy court(s) from the remaining assets of the corporation, but current shareholders would likely get, given the country it's domiciled in, nichts.

PJW
Last edited by Phineas J. Whoopee on Tue Sep 22, 2015 1:34 pm, edited 1 time in total.
saurabh
Posts: 319
Joined: Thu Aug 20, 2015 11:56 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by saurabh »

CodeMaster wrote:VW stocks are crashing... I think itll crash a lot more before it stabilizes.

My question is ... think it maybe a good idea to buy when it bottoms out?
Risk wise, is it possible itll bankrupt after all the penalties, fines, recalls and reputation damage? If not, then it seems like it would be a good long term buy "cheap" once it bottoms out?
VOW3 is down about $30B in market cap since the news came out. Per the news reports the bare minimum liability is likely $18B. But that is just the regulatory fine. In addition their will almost certainly be civil and criminal penalties plus the cost of the recall. The stock price reaction does not look at all out of line to me. If anything, it appears not to be discounting a worst case scenario for fees and penalties. The stock does not pay a dividend either, so you get paid nothing to wait.

Also if you are excited about a 35% stock drop, there are plenty of stocks that are down > 20% from their peak, reasonably cheap and don't face this kind of uncertainty.
jpelder
Posts: 1106
Joined: Mon Jan 26, 2015 2:56 pm
Location: Concord, NC

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by jpelder »

How about CodeMaster buys one share with his/her fun money and tells us how it goes? Could be an interesting experiment
User avatar
Clearly_Irrational
Posts: 3087
Joined: Thu Oct 13, 2011 3:43 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Clearly_Irrational »

If I were buying individual stocks then I would definitely use a reputation hit as a signal to examine the stock more closely. This doesn't really change their long term fundamentals that much so I'd start by downloading their 10-K and doing some analysis. That said, you shouldn't really be buying individual stocks, so why do you ask?
Maverick3320
Posts: 1115
Joined: Tue May 12, 2015 2:59 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Maverick3320 »

I just bought into to VW so if you guys would like, I'll do a semi-real time performance update series.

To head off the "you shouldn't be buying individual stocks" lecture, my entertainment stock money is well under 1% of my total portfolio.
TSR
Posts: 1252
Joined: Thu Apr 19, 2012 9:08 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by TSR »

Maverick3320 wrote:I just bought into to VW so if you guys would like, I'll do a semi-real time performance update series.

To head off the "you shouldn't be buying individual stocks" lecture, my entertainment stock money is well under 1% of my total portfolio.
I would enjoy watching that. You'll get no lectures from me.
User avatar
midareff
Posts: 7711
Joined: Mon Nov 29, 2010 9:43 am
Location: Biscayne Bay, South Florida

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by midareff »

Everyone who bought a diesel from 2009 on based on liking a test drive, which was not the vehicles real performance has a beef now. Lawyers ..... on your mark...
Last edited by midareff on Tue Sep 22, 2015 3:43 pm, edited 2 times in total.
Maverick3320
Posts: 1115
Joined: Tue May 12, 2015 2:59 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Maverick3320 »

Day 1:

Purchase date: 22 Sep 2015
Price: 25.049/share
# shares: 25, VLKAY (over the counter shares of VW)
Total price: 633.22 (7 dollar fee from Vanguard)

Current price as of 15:06 CST is $25.42.

Current profit: ~3 bucks. Gotta start somewhere 8-)
User avatar
nisiprius
Advisory Board
Posts: 52216
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by nisiprius »

Codemaster, what do you think you know about VW that the people who are selling it at 100 don't know?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
User avatar
gatorking
Posts: 1499
Joined: Tue Feb 20, 2007 5:15 pm
Location: MA

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by gatorking »

CodeMaster wrote:VW stocks are crashing... I think itll crash a lot more before it stabilizes.

My question is ... think it maybe a good idea to buy when it bottoms out?
Risk wise, is it possible itll bankrupt after all the penalties, fines, recalls and reputation damage? If not, then it seems like it would be a good long term buy "cheap" once it bottoms out?
Yes, it is always a good idea to buy at the bottom.
moshe
Posts: 565
Joined: Thu Dec 12, 2013 12:18 pm
Location: Boston, MA

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by moshe »

I think this is another in a series of examples why most, if not all, individual investors should not buy individual equities as no amount of financial, short of insider, knowledge would have saved investors from this "train wreck".

Everyday I value more and more the knowledge i have gained from John Bogle and Bogleheads! :beer

~Moshe
My money has no emotions. ~Moshe | | I'm the world's greatest expert on my own opinion. ~Bruce Williams
denovo
Posts: 4808
Joined: Sun Oct 13, 2013 1:04 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by denovo »

A recent example people should consider is BP. Their stock price has never really recovered....
"Don't trust everything you read on the Internet"- Abraham Lincoln
User avatar
JMacDonald
Posts: 2386
Joined: Mon Feb 19, 2007 4:53 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by JMacDonald »

Maverick3320 wrote:I just bought into to VW so if you guys would like, I'll do a semi-real time performance update series.

To head off the "you shouldn't be buying individual stocks" lecture, my entertainment stock money is well under 1% of my total portfolio.
What was your buy price, and how many shares did you buy?
Best Wishes, | Joe
User avatar
Phineas J. Whoopee
Posts: 9675
Joined: Sun Dec 18, 2011 5:18 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Phineas J. Whoopee »

JMacDonald wrote:
Maverick3320 wrote:I just bought into to VW so if you guys would like, I'll do a semi-real time performance update series.

To head off the "you shouldn't be buying individual stocks" lecture, my entertainment stock money is well under 1% of my total portfolio.
What was your buy price, and how many shares did you buy?
viewtopic.php?f=10&t=174277&p=2631741#p2631844
hicabob
Posts: 3796
Joined: Fri May 27, 2011 5:35 pm
Location: cruz

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by hicabob »

denovo wrote:A recent example people should consider is BP. Their stock price has never really recovered....

I got involved with BP in my pre-boglehead days. It never did recover. A big risk VW has imo, is that the courts will go after it mercilessly like they did BP, since it's not a US based company. Even Detroit Diesel, which pulled almost the exact same ploy wrt heavy diesel engines emissions and the EPA, had to pay a billion.
3504PIR
Posts: 979
Joined: Mon Jul 26, 2010 2:46 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by 3504PIR »

I'm not sure why anyone would expect BP to "recover" considering the value of the hard assets they sold post spill. It isn't the same company.
User avatar
greg24
Posts: 4512
Joined: Tue Feb 20, 2007 9:34 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by greg24 »

An $18B government penalty and a gigantic PR hit are great for a company's future prospects.
User avatar
Bustoff
Posts: 2033
Joined: Sat Mar 03, 2012 5:45 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Bustoff »

Take the money and go to Vegas ... same result, more fun. 8-)
selters
Posts: 702
Joined: Thu Feb 27, 2014 8:26 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by selters »

I don't think the fundamentals of the company have changed at all. To me it seems like the market makers have overreacted. I don't think customers care that much. The difference between lab fuel consumption and real world fuel consumption has always been big, no matter what auto maker one is talking about.

Even as an owner of a four cylinder 2012 VW Diesel (which is precisely the type of engine that VW has manipulated its software for) myself I could barely care less about this case. It's mostly media hype if you ask me.
Last edited by selters on Tue Sep 22, 2015 5:30 pm, edited 1 time in total.
hicabob
Posts: 3796
Joined: Fri May 27, 2011 5:35 pm
Location: cruz

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by hicabob »

I expect all vehicle's emission systems will come under scrutiny now and it will be interesting to see if the VW group is the only one gaming the system. I expect similar sneaky software could help gasoline engines too. If everyone, or even a few others are doing it, it might be a good thing for vw.
alwyn
Posts: 63
Joined: Sun Nov 10, 2013 8:57 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by alwyn »

This is the same VW that owns Porsche after buying it on the cheap.

So there is always the chance that someone like BMW or even Tata might buy it up, then the stock can probably only go up (eventually).

The fact that it is a german company might either count against it or for it. I would not use any US car manufacturer history as reference on what might happen as it is like comparing apples with steak.
TorturedRegret
Posts: 144
Joined: Fri Aug 21, 2015 5:20 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by TorturedRegret »

moshe wrote:I think this is another in a series of examples why most, if not all, individual investors should not buy individual equities as no amount of financial, short of insider, knowledge would have saved investors from this "train wreck".
~Moshe
It also didn't save the Index ETFs that also hold the stock.
If you pick about 20 stocks, you are just as diversified as the index or any mutual fund.
And ALL are equally exposed to black swam events like this.
rgs92
Posts: 3436
Joined: Mon Mar 02, 2009 7:00 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by rgs92 »

What if VW goes the way of Worldcom, Enron, or Lehman Brothers? (Or Saab or Chrysler?)
User avatar
Bustoff
Posts: 2033
Joined: Sat Mar 03, 2012 5:45 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Bustoff »

TorturedRegret wrote: If you pick about 20 stocks, you are just as diversified as the index or any mutual fund.
rgs92 wrote:What if VW ends up like Worldcom, Enron, or Lehman Brothers? (Or Saab or Chrysler?)
Just make sure the other 19 stocks are not like Worldcom, Enron or Lehman Brothers. 8-)
Minot
Posts: 454
Joined: Sat Jan 29, 2011 1:35 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Minot »

TorturedRegret wrote: If you pick about 20 stocks, you are just as diversified as the index or any mutual fund.
And ALL are equally exposed to black swam events like this.
You seem to be saying that the impact on your portfolio of a steep decline of a single stock is the same whether that stock is one of 20 or 1 of 3814.
User avatar
Toons
Posts: 14467
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Toons »

I would start considering a purchase when share price hits 50 :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
TorturedRegret
Posts: 144
Joined: Fri Aug 21, 2015 5:20 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by TorturedRegret »

rgs92 wrote:What if VW goes the way of Worldcom, Enron, or Lehman Brothers? (Or Saab or Chrysler?)
LOL.
mhalley
Posts: 10432
Joined: Tue Nov 20, 2007 5:02 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by mhalley »

I read an article that suggested buying a used vw diesal instead of the stock. The article suggested you would be able to get one at a huge discount, drive it a few years then be able to sell it for what you payed for it, netting a free ride for your car needs for a few years.

http://thegarage.jalopnik.com/forget-th ... 1732181250
Mike
small_index
Posts: 631
Joined: Sun Aug 16, 2015 2:47 am

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by small_index »

selters wrote:To me it seems like the market makers have overreacted. I don't think customers care that much.
If customers didn't care about clean fuels, why does VW advertise the fact to draw customers?
I don't see millions of customers overlooking both fraud (according to EPA) and lower gas mileage (after the VW recall) without a lawsuit.

The numbers I "recall" from recent articles, each divided by the 11 million cars impacted by the recall:
$7.2 billion set aside by VW as cost of the recall, or $727/car.
up to $18 billion for EPA fines by U.S. government (only a fraction of cars were sold in U.S., not sure exact number).
$30 billion lost in stock value, the market making it's estimate of damage, or $2727/car.

The U.S. EPA has claimed fraud was involved, and the CEO has begun apologizing. Europe's regulators have just started investigating, which means more damage is nearly certain. According to the article I read, VW sells more in Europe than U.S., so the lawsuits would also be bigger there.
TradingPlaces
Posts: 1245
Joined: Sun Nov 09, 2014 12:19 pm
Location: 30.286029, -97.530011

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by TradingPlaces »

Phineas J. Whoopee wrote:
CodeMaster wrote:...
My question is ... think it maybe a good idea to buy when it bottoms out?
...
How will you recognize when it has bottomed out? We'll be able to tell in hindsight, but not in real time. The bottom for shareholders could be zero, but then, at least, you'd be able to buy an infinite number of shares. :happy

I think buying right now amounts to speculating on the outcome of several lawsuits, at least, and actions by many governments, and even if it survives those well enough to remain in business, speculating on its future earnings after all the reputational damage.

There could be a VW-Audi in the future that is reconstituted in bankruptcy court(s) from the remaining assets of the corporation, but current shareholders would likely get, given the country it's domiciled in, nichts.

PJW
I agree with this reasoning. GM shares were wiped out.

VW shares could be wiped out.
User avatar
Kalo
Posts: 543
Joined: Sat May 25, 2013 1:01 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Kalo »

Minot wrote:
TorturedRegret wrote: If you pick about 20 stocks, you are just as diversified as the index or any mutual fund.
And ALL are equally exposed to black swam events like this.
You seem to be saying that the impact on your portfolio of a steep decline of a single stock is the same whether that stock is one of 20 or 1 of 3814.
Not to pile on, but I also don't understand what TorturedRegret is saying here.

Kalo
"When people say they have a high risk tolerance, what they really mean is that they are willing to make a lot of money." -- Ben Stein/Phil DeMuth - The Little Book of Bullet Proof Investing.
southbay
Posts: 471
Joined: Thu Apr 16, 2015 2:40 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by southbay »

I believe the future of automobiles is self driving cars and a lot less individual ownership. This is not as far away as many would think.

Less traffic, less parked cars, more bike lanes, etc..

I am excited about it.

Is VW ready? Not so sure...
Sourc3
Posts: 160
Joined: Wed Aug 05, 2015 4:45 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by Sourc3 »

I had some fun money allocation that I hadn't put to work. In the past two days I bought some shares. I understand that VW will get hit with fines and such but we are talking about one of the worlds largest car holding companies that lost about 30% market cap. I believe in the long run (5-10 years) the stock will bounce back.
TradingPlaces
Posts: 1245
Joined: Sun Nov 09, 2014 12:19 pm
Location: 30.286029, -97.530011

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by TradingPlaces »

TorturedRegret wrote: If you pick about 20 stocks, you are just as diversified as the index or any mutual fund.
That's an urban legend.
2comma
Posts: 1241
Joined: Thu Jul 15, 2010 11:37 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by 2comma »

I'm retired, a pretty conservative Boglehead investor, no interest in doing the 5% play money game but funny thing is, I hadn't thought of AG until now. I can't even believe I'm saying this but it's exactly how I got back to "even" after I had made several small loosing bets during the euphoric dot com era. Of course, I learned all about bubbles, investing in what you know, catching a falling knife, doubling down and how stocks really can go to 0.

I bought a value investing book (one of the old big names, I can't remember the name or the book anymore, maybe Bill Graham?) and one of the central themes was to find well beaten down companies that had good fundamentals but was well hated. Owens Illinois (OI) fit that bill to a "T" back then, it had horrible press, it was all about asbestosis. The more I researched the more it looked like all of the lawsuits were not going to bring it to it's knees and other than that it was actually a pretty well run company with good future prospects. I learned how to research a company and that there can be illegal reporting that can thwart even the best research (WCI, Enron). I also learned that doing the research, and reading and understand the book takes an incredible amount of time. Still, it's more of a gamble and for a small amount of money I probably only got a few bucks per share back for the time I put into it so it usually isn't worth it IMHO. But...

I did manage to salvage my dotcom investments, made just a little and decided I'd learned a lot of good lessons for free but I was through with fundamental analysis and individual stock picking. On the other hand AG is a huge company, the actual cost to the bottom line is unknown but will it force the company into bankruptcy? It may be a well run company with good future prospects once this is over. If the fervor in the media gets high enough and the stock price gets low enough, maybe, just maybe...
If I am stupid I will pay.
TradingPlaces
Posts: 1245
Joined: Sun Nov 09, 2014 12:19 pm
Location: 30.286029, -97.530011

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by TradingPlaces »

Sourc3 wrote:I had some fun money allocation that I hadn't put to work. In the past two days I bought some shares. I understand that VW will get hit with fines and such but we are talking about one of the worlds largest car holding companies that lost about 30% market cap. I believe in the long run (5-10 years) the stock will bounce back.
The question is not whether in the 5-10 years the stock will bounce back.

There are two questions:

- would VW outperform its risk factor predicted returns, adjusted for idiosyncratic volatility,
- would it be better to buy VW after another 30, 50, or 80% drop?

If you literally buy and random stock, surely it will bounce back in next 5-10 years(*, |^)

* assuming it does not go bankrupt,
|^ assuming stock market, as a whole, does not tank in the next 5-10 years.
TradingPlaces
Posts: 1245
Joined: Sun Nov 09, 2014 12:19 pm
Location: 30.286029, -97.530011

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by TradingPlaces »

dupe removed
Last edited by TradingPlaces on Tue Oct 06, 2015 1:42 am, edited 1 time in total.
stocksforthelongrun
Posts: 66
Joined: Sat Sep 12, 2015 9:45 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by stocksforthelongrun »

CodeMaster wrote:VW stock goes from 170 to almost 100 and falling, good time to buy?
Nope, the market has already priced VW appropriately. You missed your chance to short it. Now all you can do is hold it in its market cap weight.
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

saurabh wrote:
CodeMaster wrote:VW stocks are crashing... I think itll crash a lot more before it stabilizes.

My question is ... think it maybe a good idea to buy when it bottoms out?
Risk wise, is it possible itll bankrupt after all the penalties, fines, recalls and reputation damage? If not, then it seems like it would be a good long term buy "cheap" once it bottoms out?
VOW3 is down about $30B in market cap since the news came out. Per the news reports the bare minimum liability is likely $18B. But that is just the regulatory fine. In addition their will almost certainly be civil and criminal penalties plus the cost of the recall. The stock price reaction does not look at all out of line to me. If anything, it appears not to be discounting a worst case scenario for fees and penalties. The stock does not pay a dividend either, so you get paid nothing to wait.

Also if you are excited about a 35% stock drop, there are plenty of stocks that are down > 20% from their peak, reasonably cheap and don't face this kind of uncertainty.
Very interesting and valid points... Im sorry for such a noob question, but how can I see or find those stocks down 20% without such uncertainty?
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

Maverick3320 wrote:Day 1:

Purchase date: 22 Sep 2015
Price: 25.049/share
# shares: 25, VLKAY (over the counter shares of VW)
Total price: 633.22 (7 dollar fee from Vanguard)

Current price as of 15:06 CST is $25.42.

Current profit: ~3 bucks. Gotta start somewhere 8-)
LOL awesome
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

nisiprius wrote:Codemaster, what do you think you know about VW that the people who are selling it at 100 don't know?
nothing.. thats why im asking you guys! :sharebeer :beer
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

denovo wrote:A recent example people should consider is BP. Their stock price has never really recovered....
i actually boght bp at their low when oil spilled happened... they went back up to 45 and i bailed. it worked out for me, not saying im pro, but that seems to be the way to do it hehee it was all luck i pulled out.

buffet did the same for BAC when it dropped to 5 , rasied to 15 and he pulled out. i wish i followed him on that one... i actually ddi the same, but wtih very little money. i fantasize had i put in my entire life savings and watching it triple, wow! lol
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

Bustoff wrote:Take the money and go to Vegas ... same result, more fun. 8-)
LOL might be true
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

rgs92 wrote:What if VW goes the way of Worldcom, Enron, or Lehman Brothers? (Or Saab or Chrysler?)
what happened with saab and chrysler? :shock:
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

Toons wrote:I would start considering a purchase when share price hits 50 :happy
ya... at very least with fun money seems a good idea, tho i think a bounce maybe years...
Topic Author
CodeMaster
Posts: 819
Joined: Sun Mar 18, 2007 3:03 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by CodeMaster »

mhalley wrote:I read an article that suggested buying a used vw diesal instead of the stock. The article suggested you would be able to get one at a huge discount, drive it a few years then be able to sell it for what you payed for it, netting a free ride for your car needs for a few years.

http://thegarage.jalopnik.com/forget-th ... 1732181250
Mike
supposedly thats what people do with tesla.. my friend tried to convince me its true by showing me craigslist ads for ones on sale which were few years old being same price as new. i didnt study it carefully to verify since i didnt care, but people talking about it.. not sure how long thatll last or if its even true.
downshiftme
Posts: 1142
Joined: Sun Mar 11, 2007 6:11 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by downshiftme »

Original reports suggested that the fine alone for the deception was $37,000 per vehicle. So with 482,000 vehicles involved that could be a record $17 Billion fine. Plus of course all the expenses to fix or buy back the cars, lawsuits, decreased future sales and so on. Now reports are that approx 11 million vehicles are affected, which at $37,000 per violation would result in a fine alone up to $407 Billion. Their image as the "clean" diesel car is shot and won't be back for years, if ever. They are under fire from other countries in Europe for similar issues. They are taking heat from Germany for damage to the entire country's reputation of "German Engineering" and there may very well be criminal charges still to be filed.

I do not think it's as "obvious" as some people suggest that the drop in stock price is temporary or even that the company in it's current configuration will survive. Catch a falling knife at your own risk.
southbay
Posts: 471
Joined: Thu Apr 16, 2015 2:40 pm

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

Post by southbay »

mhalley wrote:I read an article that suggested buying a used vw diesal instead of the stock. The article suggested you would be able to get one at a huge discount, drive it a few years then be able to sell it for what you payed for it, netting a free ride for your car needs for a few years.

http://thegarage.jalopnik.com/forget-th ... 1732181250
Mike
the new VW's are already being discounted by dealers. they are in full panic mode (as they should be) scrambling to move inventory. if you wanted a VW, the next couple weeks should be a great time to buy new or used.
Locked