Consumer Discretionary

Report by Hedgeye

PAH3 / POAHY is the best way to own Volkswagen according to Jay Van Sciver - Porsche SE principally owns VW common shares. VW trades at a discount to a SOTP valuation, with just the Porsche franchise likely worth more than the entire VW current Mkt/Cap. Then, Porsche SE trades at roughly 30% discount to the market value of those VW common shares. A Porsche IPO should make all this obvious and begin to unlock the value. Being on the same terms as the Porsche family is the most reasonable path to taking advantage of this disconnect as they go through the IPO. Porsche SE is the only long auto OEM Hedgeye currently has on their Best Ideas list.