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Medium

Risk
Yield
Enhancement
Contingent Income Auto-Callable on TSLA
Investment Terms
Issuer Barclays
Notional- $13,511,480.00
Unit Size-1,351,148 units
CUSIP- 06742W414
Underlying- Tesla Motors,
Inc.
Pricing date- 7/18/2014
Maturity data-7/22/2015
Max Return- 115.7%
Minimum Return- 0%
Issuer Details
Issuer - Barclays
S&P Credit Rating.
Market capitalization
60.31 Bn
CDS 5y spread 85 bps
Investment underlying opportunity: Tesla Motors, Inc. (TSLA) stock had been performing well
over the last few months. The stock rose from $149.56 to $224.54 by July 24
th
, 2014 increasing
almost 50% since January. This is due to variety of new strategic developments that have resulted
in the stock price growth. Notable news the open sourcing of its patents and the introduction of
the CUV known as Model X and a smaller sedan known as the Model III. This stock might pull
back temporarily but has good potential for appreciation. This would suggest stock has high
probability to move with in a narrow range.
Further analysis
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Risk Return Dashboard
Expected
Return
5.93 %
Volatility 2.8%
Risk Score 3
Capital
Guaranteed
No
Maximum
Loss
100% of
investment
Performance Measure
Expected
Return
High
Market Risk High
Issuer Risk Low
Complexity Low
TSLA statistics
Beta 1.37
P/E N/A
RoE -18.7%
Current Ratio 1.9
Leverage Ratio 3.6
Altman's Z-Score 10.36
Dividend Yield 0.0
Total Debt/Equity 0.91
Structured note investment underlying
has beta of 1.37, the Z-score
is 10.36, and it has high debt
to equity.
Currently TSLA shares are at $223.54 its
competators Toyota( TM ) , General Motors (GM)
and Ford (F) are at $119.38, $35.74 and $19.60
respectively.
This is a company that is about 4 years old.
This note has one year to maturity.
The expected return is good.
This position pays limited amount on
the upside with potential to loss
all of the initial investment . This is a
good investment if the underlying
stock moves with in a narrow range.
Investment Metrics
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Note Performance
(Historical)
Note Performance
(Future Stress test)
Return 4.125% Per quarterly 4.125% Per quarterly
Note Payoff 117 max 117 max
Probability of Gain 1 1
Risk Score 3 3
Volatility 2.8% 2.8%
Probability of Loss 0 0
Expected Maturity 1 Year
1 Year
This note has returned 4.125% per quarterly historically with a probability of gain of 1.
Therefore from a mathematical perspective, this note is most certain to deliver the
expected return without losing the principal.
Investment Performance
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Recommendation: Metrics and historical analysis concludes this investment is a risky one for a
conservative investor. In current market environment for an adventurous investor this investment will
definitely help to obtain 4.125% Per quarterly with protection up to a 30% decline in the stock price.
Pros Cons
Note provides a coupon of 4.125% as
long as note is above 70% of initial
level
Note offers exciting opportune
exposure to Tesla Motors stock
Note has potential to loss entire
invested principal if markets decline
below 70% of initial level
Historically this note has lost money
many times
If the stock performs extremely well
or bad then note returns are limited
on upside to losing all of the invested
amount
Score Card: Reverse Convertible on GMCR
Market Direction (SP 500):
Market Vol (SP 500):
Underlying Direction:
Underlying Vol:
Issuer Credit (CDS):
Investor Risk Appetite:
Investment Recommendation
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Disclaimer: This report is prepared by Gatick Global solutions team. This is
not an investment advise.
Contact Details:
Karthik Misra and Chandra S Khandrika for further details and questions
Bearish Bullish
Low High
Bearish Bullish
Low High
Low High
Low High

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