In Europe, the COVID-19 pandemic is worsening again, which could lead to a new lockdown in Germany, at least in large cities. The only salvation right now seems to be a vaccine.
The corona pandemic has thyssenkrupp hit hard in the office. Then there are the structural problems in the steel business. The search for a partner or the sale of the division has recently been difficult and the hope of a temporary state participation has for the time being been dashed. There is also danger in terms of chart technology.
The nine-month figures of the Düsseldorf-based industrial group for the 2019/20 financial year (as of September 30) are shaped by the effects of the pandemic, which led to a decline in demand in important customer sectors, including the automotive and mechanical engineering industries. As a result, sales fell by 12 percent to around 27.5 billion euros, and profit for the period after taxes fell further to almost -2 billion euros from 0.2 billion euros in the same period of the previous year.
Although the situation is likely to have stabilized somewhat in the fourth quarter, the company has been hit hard. A KfW loan of EUR 1 billion granted at the beginning of the pandemic secured liquidity, but the balance sheet looks bleak: the proceeds from the sale of the elevator division of around EUR 17 billion in the fourth quarter should mainly be used to repay liabilities flow. As of June 30, these were over EUR 34 billion. By this point the equity capital was completely exhausted and the call for government involvement grew louder. The North Rhine-Westphalian Prime Minister Armin Laschet has now rejected it. Thyssenkrupp employs around 155,000 people, around 40 percent of them in Germany. Politicians could therefore – sooner or later – be forced to act. In the short term, however, the chart and fundamentals point further down. Speculatively oriented investors can bet on further falling prices with a turbo warrant from UBS. The annual low for the share appears to be achievable as a price target, from which a price target of 1.65 euros is derived for the warrant. An adequate stop loss is 0.60 euros.
?? Underlying: thyssenkrupp
?? Product type: Turbo warrant
?? Issuer: UBS
?? RAY: DE000UE2M6G2
?? Duration: Open end
?? Price knockout put (October 15, 2020, 3:06 p.m.): 0.94 euros
?? Base price variable: 4.9891 euros
?? Knock-out threshold: 4.9891 euros
?? Leverage: 4.4
?? Distance to knock-out: 21.1%
?? Stopp-Loss Put: 0,60 Euro
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