Will Melrose Industries continue falling, or will it rise again back to 186p?

• The corporate M&A and turnaround specialists’s share price has fallen over 5% today.
• It has been as high as 186.65p in November. It is now at 172.6p (at the time of writing).
• 19 Nov: Melrose starts as a top pick at brokers at RBC Capital.
• 13 Nov: Melrose said in latest update that revenue growth in its aerospace and powder-metallurgy divisions has been strong.
• Shares -26.9% from 2018 highs; +21.6% from 2018 lows; -18.9% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Melrose Industries – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards November highs of 186.65p again. You decide to buy exposure to £10,000 worth of Melrose Industries using a CFD, at the current price of 172.6p. To do this, you need £2000.

Let’s assume Melrose Industries recovers back to 186.65p (+8.1%). Your profit would be £810, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Melrose Industries falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.