ThyssenKrupp with 19% chance and 44% safety buffer – columns

ThyssenKrupp with 19% chance and 44% safety buffer

The shares of the steel and technology company ThyssenKrupp (ISIN: DE0007500001) have been under massive pressure for years. According to the figures published a few days ago, the share, which was traded in the region of 12 euros just a year ago, slipped to as low as 4.43 euros. In the past few days, however, the share was able to move up from the lows. After the latest buy recommendation from Deutsche Bank to buy the share with a price target of up to eight euros and the burgeoning takeover rumors, the share price approached the six euros mark again.

The investment idea: Investors who trust ThyssenKrupp shares to stabilize, but who want to achieve a positive return even if the share price falls sharply, could consider investing in a bonus certificate with a cap. In contrast to a direct equity investment, bonus certificates provide opportunities for disproportionately high returns even when share prices are stagnating or falling.

The certificate presented below will enable positive returns even if ThyssenKrupp shares even fall below their annual low of March 18, 2020 at 3.28 euros in the next few months. At the current share price of 5.67 euros, the share could even allow itself a price decline of 44 percent before losses threaten.

How it works: If the ThyssenKrupp share never touches or falls below the barrier of EUR 3.20 by the valuation date of the certificate, then the bonus certificate with cap will be repaid on December 23, 2021 at the bonus level of EUR 5.50.

The key data: The BNP bonus certificate with a cap (ISIN: DE000PF3GHC7) on ThyssenKrupp shares has a barrier of EUR 3.20. At 5.50 euros, the bonus level and the cap were attached. The cap defines the maximum payout amount for the certificate. The valuation date is December 17, 2021, and the certificate will be repaid on December 23, 2021. At the ThyssenKrupp share price of EUR 25.69, investors could purchase the certificate for EUR 4.62.

The opportunities: Since investors can currently buy the certificate for EUR 4.62, it enables a gross return of 19.05 percent over the next 13 months if the share price never rises by 43.56 percent to EUR 3.20 or below by the valuation date falls.

The risks: If the ThyssenKrupp share touches the barrier of EUR 2.30 by the valuation date and the share is listed below the cap on that day, the certificate will be repaid at the closing price of the ThyssenKrupp share set on December 17, 2021. However, in this case too, the cap limits the maximum payout amount to EUR 5.50.

This article does not constitute a recommendation to buy or sell ThyssenKrupp shares or investment products based on ThyssenKrupp shares. No liability is assumed for the correctness of the data.


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