Wacker Chemie – Yield with Cyclical Chemistry – Columns

Wacker Chemie – Yield with cyclical chemistry

Good news at Wacker Chemie (DE000WCH8881): Wacker Chemie only listed its wafer subsidiary Siltronic in 2015 for 31.50 euros and kept around a third of the shares – the Taiwanese group Globalwafers recently announced the takeover at a price of 125 euros each. This transaction values ​​Siltronic at EUR 3.75 billion and fills the coffers of the chemical company specializing in polymers, silicones, polysilicones and biosolutions. According to the SG analysts, Wacker Chemie’s product orientation also speaks for itself, with which the group should particularly benefit from green deals, decarbonisation trends and economic stimuli. Anyone who does not want to be dependent on rising prices can rely on certificates for solid sideways returns.

Discount strategy (March) with an 11 percent buffer

If the share closes above the cap of 100 euros on the valuation day 19.3.21, the discount certificate from Morgan Stanley with ISIN DE000MA33284 at a purchase price of 95.83 euros brings a profit of 4.17 euros or 14.7 percent p.a. A cash settlement is made for courses below 100 euros.

Bonus strategy (March) with a 26 percent buffer

There is more buffer with a barrier: The SG’s capped bonus certificate with ISIN DE000SD0G4R0 pays the maximum amount of 110 euros when due (03/26/21), provided the share never breaches the € 78 barrier by 03/19/21. At a purchase price of 105.93 euros, the maximum return is 4.07 euros or 12.9 percent pa Particularly attractive: the certificate is quoted slightly cheaper than the share with a discount of 2 percent. If the barrier is breached, investors receive one share.

Income strategy (December) with a 10.4 percent coupon

The HVB reverse convertible bond with ISIN DE000HX7K0K1 pays a fixed interest coupon of 10.4 percent p.a. regardless of the price development when due on December 27, 21. Due to the purchase price just below par (currently 99.61 percent), the return increases to 10.7 percent p.a. if the share is quoted above the base price of 100 euros on the valuation date (December 17th, 21st). Otherwise, 10 shares will be delivered according to the subscription ratio (= EUR 1,000 / EUR 100).

CertificateReport conclusion: Wacker Chemie is one of the cyclical stocks and is therefore dependent on global economic growth – the certificates and the reverse convertible bond offer defensive entry opportunities with attractive returns in a sideways trend.

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

Author: Thorsten Welgen


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