Saturday September 11th 2021
24 percent protection
Daimler with a 17 percent chance
After the strong price increases of the past year, the Daimler share has been in a correction phase for a few weeks. With bonus certificates with a cap, investors can achieve high returns even if the consolidation continues for a longer period of time.
The upward movement of the Daimler share (ISIN: DE0007100000), which lasted for more than a year, boosted the share price from the low in March 2020 to just above 20 euros by June 7, 2021 to as much as 80.41 euros Months ago by a clear corrective movement.
As with all other automobile manufacturers, the lack of chips had a negative impact on production capacities and also on the Daimler share price. Expecting the semiconductor crisis to ease in the last quarter of 2021, the experts from Warburg Research reiterated their buy recommendation for Daimler shares in their latest analysis with a price target of 101 euros.
The investment idea
Investors who want to use the lower price level of the Daimler share to invest in the share must clearly accept the risk of a further slide in the share price. With bonus certificates, investors can significantly reduce the risk of buying shares directly and still achieve high returns.
Apart from dividend payments, the direct purchase of Daimler shares will only ensure positive returns if the share price rises. With bonus certificates with and without a cap, investors can achieve annual returns of at least ten percent not only when the share price rises, but also when prices stagnate or fall.
How it works
If the Daimler share never touches or falls below the barrier of EUR 52.50 by the valuation date of the certificate, the bonus certificate with cap will be repaid on September 23, 2022 with the maximum repayment amount of EUR 80.
The key data
The HVB bonus certificate with cap (ISIN: DE000HR9JQD3) on Daimler shares has a bonus level and cap of 80 euros. The cap defines the maximum payout amount for the certificate. The barrier activated up to the valuation date, September 16, 2022, is at EUR 52.50. At the Daimler share price of EUR 68.70, investors could purchase the certificate for EUR 68.38.
Since the certificate is currently available for EUR 68.38, it enables a gross return of 16.99 percent in just over a year if the share price never falls by 23.58 percent to EUR 52.50 or below by the valuation date.
If the price of the Daimler share touches the barrier at EUR 52.50 on the valuation day and the share is listed below the cap on the valuation day, investors will receive one Daimler share for each certificate. If this share is sold below EUR 68.38, the purchase price of the certificate, then the investment will cause a capital loss.
This article does not constitute a recommendation to buy or sell Daimler shares or investment products based on Daimler shares. No liability is assumed for the correctness of the data.