Anyone looking at what's happening with Volkswagen? CEO gave a Elon Musk Style presentation on Monday at their "Power Day", the more liquid preference share VOW3 went up but the thinly traded ordinary shares VOW went through the roof and decoupled from the preference shares (they normally trade very close to each other).
The ordinary has 10% short interest according to IHS markit vs less than 8% float... 53% porsche, 20% state of lower saxony, 17% Qatar and read on bbg that the Porsche family controls another 2.3% via a trust in Austria...
The run up on the ordinary seems to have been caused by the fact that US retails are buying the american ADR VWAGY which is somehow based on the ordinary not on the pref. (yesterday volumes on the ADR were 11.3x the 3M average vs only 2.6x for the pref)
looks like the shorts on the ordinary are getting squeezed, anyone else following the situation? here article from
Bloomberg
Difficult to say whether the squeeze has happened already and the spread will normalize or if it will keep growing as retail keep buying the ADR...