WH Smith
A trading opportunity for you?
Will WH Smith continue falling, or will it rise again back to 2,135p September highs?
- WH Smith shares have fallen 11.8% in the past week to trade 1,826p (at time of writing).
- Shares -13% from 2018 highs; +9.7% from 2018 lows; -22% year-to-date.
- Full-year results disappointed investors as pre-tax profit fell 4% due to weakness in retail business.
- Travel business continued strongly, but challenges in UK retail sector dragged earnings down.
- Source: Dow Jones, Bloomberg, FT, Company News
Trading WH Smith – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 2,135p. You decide to buy exposure to £10,000 worth of WH Smith using a CFD, at the current price of 1,826p. To do this, you need £2,000.
Let’s assume WH Smith recovers back to 2,135p (+16.2%). Your profit would be £1,620, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. WH Smith falls 8% and hits your stop-loss. Your loss would be £800.
This is provided for information purposes only. It should not be taken as a recommendation.