My gosh. Could it get any worse for Volkswagen? Here’s your trade. (September 23, 2015)
I want to look at Volkswagen ( OTCMKTS: VLKPY ) here. There’s a bunch of different Volkswagen, diesel cars too, you just don’t want to buy any of them, different stocks and stuff like that; but 1 million shares, this works. This is a stock that I never would have traded with anybody’s money, unless it was somebody I really didn’t like. It’s really choppy, really gappy because it’s a European company, a European stock. You know what happened. If you don’t here’s the “Readers Digest” version. It turns out the company’s diesel cars weren’t as “green” as you thought they were; weren’t as “green” as the emissions test showed that they were. And it’s not because there was a glitch in the software. It’s because the company committed fraud.
They deliberately rigged their cars so that they gave a false reading. When I hear something like that, I’m sorry there’s just one word that comes to mind, maybe it’s two, and that’s “scumbag”. And so the CEO, a few days ago, was basically going like, “Hey, you know what? We screwed up. We’re so sorry.” And this and that. Well you know this guys days were numbered. The stock just got absolutely crushed. But now I think it’s giving you an opportunity. Look, this dudes out. I don’t know where he’s going to go, at least while he’s here, but the worst is baked into this now. It can only get better.
Literally you look at it yesterday and you go like, “For cryin’ out loud! Could things get any worse for Volkswagen ( OTCMKTS: VLKPY )?” NO! People hate this company! I do! Every time I see a Volkswagen now I want to ram it with my Tesla, which is very clean. This stock absolutely got crushed! Today, the stock gaps up, you can say it’s on “news” because the CEO got canned. Or just because, and this would be my view, just so much selling has gone on that finally there are just no more sellers so it has to trade; so then there are going to be buyers. Some of these are folks covering their shorts, as they should.
I’m saying, you can take this stock; I think this low is going to hold for the foreseeable future. It’s $23.60, I think you can take this stock for a “ride”, take it up 6, 7, 8, 9 percent. I don’t think it’s a, “Oh, it’s a screaming buy!” NO! The company committed fraud, and it’s not just on the CEO, it’s on his shoulders, but he’s not the guy that was designing that software. You can take this stock for a “ride”. If it rallies up to the mid 27’s or so, I think that’s about enough. Then you can look to sell into any strength. “Hold her until she starts stalling.” “Ride her until she bucks you off.” But I think this is a stock that you want to be long. Don’t look to short this stock on this, that train has already left the station. So look to go long here. Keep a stop, really below yesterday’s low of $23.60, and I think you’re good to go.
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