Expected
yield per annum
26-28%
  • Minimal Investment amount 1900 USD
  • Expiration date: 20.02.2019
  • Capital Protection: 85%

Hewlett Packard Enterprise is an IT company specializing in the production of architectures for corporate business, including cloud databases, supercomputers, server systems and much more. The market capitalization is $38.68 billion, the number of employees is 66 thousand people.*

Underlying Assets Hewlett-Packard
Currency USD
Expected yield, % per annum 26-28%
Volume of investments 1900 USD
Term of placement of the deposit up to 20.02.2019
Protection of capital 85%
Participation Rate 0.5
Direction of Underlying Asset Price Movement on a price increase

Growth factors:

  • HPE is the world's largest manufacturer of server hardware and data storage equipment, with an annual turnover of over $50 billion, outpacing the closest competitors DELL in this segment by more than twice.
  • The average growth of annual capitalization is about 10%, which, for a company of this size, is an indicator higher than expected.
  • Aggressive absorption. Since its inception in 2015, the company annually performs a number of aggressive acquisitions of companies - medium-sized competitors.
  • Multi-profile. Despite the fact that the bulk of HPE's business is the production of high-tech equipment, one of the most important sources of revenue is activities in the field of financial management. There are several companies engaged in various kinds of investments and management of financial assets of clients under the company's umbrella, the turnover from financial operations is 3-4 billion dollars, which is 7-8% of the company's total financial turnover.


Analysis:

At the moment, the long-term upward movement of the third impulse wave continues, the end of which is expected in the price area of $36.3. As for the current indicator, the expected growth is 54.5%.

 

 

This product allows you to participate in the growth of the underlying asset wherein the investor risks with a limited amount, which is determinated by the Capital protection level.

The product is dedicated specifically for conservative investors, where they can  define and limit the risks of such products themselves. As such, these products provide a great opportunity to receive relativelly high income whilst minimising the possibility of capital loss.

*according to the information from the company's website.

  • Product with capital protection
  • Minimal Investment amount 1900 USD

How the product works

Once the contract is concluded, the initial price of the underlying asset, the Capital protection level, and the participation rate are recorded.

Investor risks are limited to the amount determinated by the Capital protection level.
A product with 100% protection level carries the lowest possible risk and the lowest potential yield.

The repayment to the client is calculated according to the following formula:
Repayment = Investment amount * Capital protection level + Participation rate * Price change- Commission.
Where the investment amount is taken as 100%, and the price change is calculated as follows (Current Price – Initial Price) / Initial Price * 100%.

The commission for a investment product creation is 2% of the initial investment and is charged at the time of product expiration.

If at the Expiration date the price of the underlying asset is higher than the initial price, the investor is paid 100% of the invested funds and an income equal to the product of the participation rate and the growth of the underlying asset. Conversely, the investor is paid the invested funds in accordance with the Capital protection level.

The parameters of the products are indicative and may vary depending on the market situation.

 

Examples:

1. The price of the underlying security moves in the direction chosen by the investor.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 85% (Capital protection level) + 0.5 (participation rate) * 60% (price change) = 115%

2. The underlying security’s price moves in the opposite direction and finished below the Capital protection level.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 85% (Capital protection level) = 85%

Attention!

The product yields shown in the examples and past financial performance do not guarantee future profits. All investment products are denominated in USD. The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration. The expected yield of investment products is given in annualized percentage form.

Note:

The protective investment component is allocated to fixed income products (Eurobonds and deposit schemes at leading banks). NordFX cannot be held responsible for any potential risks associated with the default of Eurobond issuers or the bankruptcy or default of any of the banks in which the deposits are held.

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