Not very expensive and with a yield of 5%, the title of this famous family holding company still has great potential that it is possible to play with a capped bonus.
Already present in our selection of the “speculator’s corner”, the Bouygues share is off to a good start in 2021 with a gain of 5%. Present in the construction, telecoms and media professions with TF1, the group logically suffered in the first half of 2020 from the first period of confinement both at TF1 with a drop in advertising and in the construction industry with the shutdown. Construction sites. It then caught up well to the point of raising its outlook following a better-than-expected third quarter, expecting a second-half current operating margin higher than in 2019 over the same reference period. Which amounts to saying that in the second part of the last financial year, Bouygues wiped out the horrors of the health crisis. In the construction industry, visibility is excellent with a record order book of 33.5 billion at the end of September with the possibility of winning major projects in the United States in the event of a stimulus plan focused on infrastructure that could launch new president Joe Biden. At TF1, the highly competitive environment is difficult, but the group has adapted its strategy by diversifying into content production and cutting costs. In the telecoms sector, the restructurings initiated a few years ago are bearing fruit. Finally, on the balance sheet side, the gradual withdrawal of Alstom’s capital makes it possible to reduce net debt to 23% of shareholders’ equity and ensure visibility for shareholders on the dividend trajectory, with a return close to 5%. in a context of zero interest rates.
Refunded at 41.50 euros if the Bouygues share does not fall below 28 euros
The file will be played by means of a capped bonus issued by Société Générale with a deadline of September 24, 2021 and two terminals located at 28 euros for the lowest and 41.50 euros for the highest. Let us recall how the certificate works. It’s very simple: it will be repaid at maturity at its bonus level of 41.50 euros, provided that the Bouygues share does not drop below the lower limit of 28 euros by then. Given its purchase price, it is likely to deliver a gain of 12.5%. For a controlled risk since in the most pessimistic hypothesis of a decline of the security below the lower limit of 28 euros of the certificate, it will still be reimbursed on the September 24, 2021 maturity during the share. But be careful, because the certificate does not allow you to collect dividends from companies, nor to remain exposed to a continuation of the Bouygues share above the bonus level of 41.50 euros, which constitutes the maximum redemption price.
Our advice: buy a Bouygues capped bonus issued by Société Générale (code: FR0000120503); deadline: September 24, 2021; limits: 28 / 41.50; parity: 1 share for 1 certificate; price: 36.88 euros: portion: 1.