Hapag-Lloyd with 23 percent opportunity
After a long fall in the share price, the Hapag-Lloyd share has recently recovered strongly. With bonus certificates with a cap, investors can generate very high returns even if the share loses almost half of its current value.
The share price of the container shipping line Hapag-Lloyd was on a downward trend until recently. The weak demand situation, lower freight rates and the resulting slump in profits in the first nine months of 2023 were cited as the reasons for the significant drop in the share price. While the share was still trading above EUR 200 in August 2023, it was even trading at EUR 103.40 at times on December 13, 2023.
The company's announcement that it would no longer use the Asian route through the Suez Canal for the time being following attacks in the Red Sea and would take the detour around the African continent was received positively by investors. Since December 13, 2023, the share price has risen by 37% to its current level of EUR 141.80.
The investment idea
For investors who want to achieve high returns with the help of Hapag-Lloyd, which is classified as fairly valued but recommended for sale by the vast majority of experts, the purchase of a bonus certificate with a cap could be an interesting alternative to buying shares.
Apart from dividend payments, the direct purchase of Hapag-Lloyd shares will only generate positive returns if the share price rises. With bonus certificates with and without a cap, investors can achieve disproportionately high returns not only if the share price rises, but also if the share price stagnates or falls.
How it works
If the Hapag-Lloyd share never touches or falls below the barrier of EUR 72 by the valuation date of the certificate, the bonus certificate with cap will be redeemed on December 31, 2024 with the maximum redemption amount of EUR 120.
The key data
The HVB bonus certificate with cap on the Hapag-Lloyd share (ISIN: DE000HD0MSN7) has a bonus level and cap at EUR 120. The cap defines the maximum payout amount of the certificate. The barrier activated until the valuation date, December 20, 2024, is EUR 72. At the Hapag-Lloyd share price of EUR 141.80, investors could purchase the certificate at EUR 97.70. The purchase of the certificate is therefore associated with a significantly lower capital investment than the direct purchase of shares, which is entirely in the interests of investors.
The opportunities
As the certificate can currently be purchased at EUR 97.70, it offers a gross return of 22.82% until December 2024 if the share price never falls by 49.22% to EUR 72 or below by the valuation date.
The risks
If the price of the Hapag-Lloyd share touches the barrier at EUR 72 by the valuation date and the share is quoted below the cap on the valuation date, investors will receive one Hapag-Lloyd share for each certificate. If this share is sold below EUR 97.70, the purchase price of the certificate, the investment will result in a capital loss.
This article does not constitute a recommendation to buy or sell Hapag-Lloyd shares or investment products based on Hapag-Lloyd shares. No liability is assumed for the accuracy of the data.
Read also:
- This will change in December
- Attacks on ships in the Red Sea: shipping companies avoid important trade route
- Houthi rebels want to launch further attacks despite international coalition
- USA forms military coalition against Houthi attacks on ships in the Red Sea
Source: www.ntv.de
