Perfectly in line with my view that elitist transgressions will no longer get ignored or swept under the carpet, Martin Winterkorn is now ex-CEO of VW.
The stock has literally collapsed by 50% this year and, given the fact that the DJIA is likely no working on wave 5 down (5 of 1), I think it is a fair assumption that when the DJIA tanks to 15300 or lower, we should see VLKAY put in a deep vee 2nd or B per the red model. Then, when DJIA rallies into wave 2 (I will have covered all my shorts into wave 5 of 1 down), VLKAY should rally big time back to the level of the prior 4th as people wonder just how bad this news is.
But after that blue 2 bounce happens in 3 waves, load up on the put options because this thing is going to catch another wave of painful fahrvergnügen as wave 3 or C collapse this thing likely down into the $12-$13 range.
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And now fingers are pointing at BMW after road tests performed in one of its compact SUV. Of course, this is just not fair. BMW may very well abide by the emissions regulations during the test cycle, but not outside of it, even without rigging the engine computer to detect the test cycle. The issue is more with a test cycle that just doesn't reflect daily driving conditions, not unlike the mythical figures on an EPA window sticker. But it doesn't matter, the herd wants to hear, or learn, nothing of it.
As engineers, we know that products are designed to beat benchmarks. There's nothing unethical about it, even if it's frustrating at times to not be able to design the best, just the good enough. But so is work with limited time and resources.
BTW, Herr Winterkorn has just been awarded a€32 million annual pension.
That bit about the fat pension is going to be interesting to watch. These early losers tend to fare better than those who try to hang on too long. Once it's obvious that the whole global economy is in collapse nobody will agree to such ridiculous bullshit.
It remains to be seen if this money grab holds. I would not bet on it being a sure thing. The shareholders are now feeling major, major pain and to reward the corrupt ex CEO like this is taking even more right out of their pockets.
Worse yet, if Winterkorn is allowed to keep this generous rip off of the investors, I will be surprised if he lives to spend it. These are the times where people have lost fear and feel righteous indignation that justifies taking matters into their own hands. Winterkorn, if you are reading this, find a bunker, hire a shitload of mercs to guard you, and keep a low profile because the herd is very, very unhappy with you.
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