Remember the headline, "Porsche's Profit Exceeds Revenue"? After reading it we wondered if 2 + 2 still equaled 4. After-all, how can a company's profits be greater than their revenue? Did the basic rules of
business math not apply to Porsche?
Back then, we did some research and answered readers questions about Porsche's finances and their attempt to purchase VW as best we could with this post, "An Idiot's Guide to Porsche's Financial Troubles". Not too long after this there were rumors of possible market manipulation by Porsche that quickly materialized into real-life law suits with the German sports car maker as defendant. Apparently, over the course of two days in 2008, Porsche's bid to take over the much larger VW caused Volkswagen shares to soar - briefly making it the most valuable company in the world - resulting in billions and billions in losses for the hedge funds that were shorting VW at the time.
CNBC Investigates Porsche
This coming February 16th, at 9:00 p.m. Eastern Time (and then again at 12:00 a.m.), CNBC will air "Fast Bucks: How Porsche Made Billions". The 30 minute show promises an "investigates allegations that the iconic automaker manipulated the market in an all-out bid to acquire its rival". Be sure to set your DVD! I know I will.
[Picture Source: Google Images via http://mississaugalife.ca]