5D·

📈 Why I bought a Rheinmetall call with a strike of €3,000 (Dec 2028) today

In short: because I believe in the long-term potential of the company.

Rheinmetall is one of the main beneficiaries of the security policy turnaround. Germany is investing billions in armaments and the EU is following suit.

Cooperation in India, new plants in Hungary and an explosive order book. 60 billion backlog. That's a full order book for the next 6 years

I haven't put any new capital into this bond, I've just shifted profits from an older bond into this one. $RHM (-3,99 %) I merely reallocated profits from an older bill into this one.

At approx. 18% p.a. I am at break-even at the end.

Let me know what you think, is the party over or has it just started? 😉

02.06

Long @3000 € Rheinmetall Warrant

Comprado a 4,10 €

14 Comentarios

BeachPlease@BeachPlease

That's exactly how it's done! But if this continues, the strike will come sooner...Renk and Hensoldt should not be forgotten...

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Florianhmg@Florianhmg

@BeachPlease if the strike comes earlier and nothing has changed fundamentally, we will shift into another OS :)

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JCM@TheStoic

So you're investing in a company because of a few new plants and the orders? I think that's a pretty weak investment case if that's all you're relying on. Most of it is already priced in anyway. Rheinmetall is pure speculation at the current valuation

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Florianhmg@Florianhmg

@TheStoic It's pure speculation, I agree with you. That's why I didn't invest any new capital, but only reallocated from an old OS. The current OS is nowhere near as aggressive as the previous one and has a much longer term.

Of course, these are not the only two arguments. I only wrote two arguments in my post that also have a long-term impact on the company and are not driven by news or geopolitical tensions :)

How do you know that everything is already priced in?

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JCM@TheStoic

@Florianhmg among other things, because the price has risen disproportionately to profits and the share price continues to rise, even though the last quarterly results missed expectations, in some cases by a wide margin. For me, this strongly suggests that the company is simply pricing in the future.

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Florianhmg@Florianhmg

@TheStoic the P/E ratio is very high, that's true, but which figures were missed by a large margin?

- Significant growth in orders: Rheinmetall Nomination increased by 181% to €11 billion

- Momentum continues: Group sales grow by 46% to €2.3 billion in the first three months - military business increases by 73%

- Consolidated operating result increases significantly by 49% from €134 million to €199 million; operating result in military business almost doubled

You are welcome to take a look at the remaining points yourself on the website :)

https://www.rheinmetall.com/de/media/news-watch/news/2025/05/2025-05-08-rheinmetall-pressemitteilung-quartalsmitteilung-q1

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Chris@Multibagger

@Florianhmg What should not be forgotten amidst all the euphoria surrounding defense shares, and what caused the sharp fall in the share price yesterday, is that there will be some form of state profit absorption. Whether this will be via taxes or a shareholding is another matter. But given the long term, something will certainly happen by then.

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Florianhmg@Florianhmg

@Multibagger I saw the Spiegel article. I personally can't imagine that German companies would be slowed down like this while a war is raging in Europe.

"UBS analyst Seven Weier also emphasized that such tax plans are unlikely to meet with broad political support at present. He confirmed his price target of EUR 2,200 and the "buy" rating."

https://www.onvista.de/news/2025/06-02-aktien-im-fokus-3-spiegel-artikel-bremst-ruestungswerte-rheinmetall-im-minus-0-10-26395958

But if you have more information on this, please let me know :)

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Florianhmg@Florianhmg

@Multibagger I am aware that it is risky, which is why the position size is not large and it is not new capital.

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Chris@Multibagger

@Florianhmg Nobody has any more detailed information yet. However, skimming off armaments profits is something that is very easy to communicate to the population in view of empty state coffers. And given the high base value of your bill and its long term, the current situation does not play a decisive role

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Florianhmg@Florianhmg

@Multibagger That's right, it's definitely a risk that I'm aware of.
But that's no reason for me not to switch into this OS. I also have no problem sitting out extreme volatility or price setbacks

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Chris@Multibagger

@Florianhmg I understand, I trade the same way with many derivatives, higher vola and leverage, but shorter horizon.

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Florianhmg@Florianhmg

@Multibagger thank you for your perspective 👍

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