RPC reports results on Wednesday (28 Nov)

• The chart shows the price movement last time RPC reported (Trading Update, 8 Oct).
• The shares opened flat, which was the high of the day.
• The shares fell as low as -79.6p (-9.8%) and closed -34p (-4.2%), for a daily trading range of 79.6p or 9.8%.
• On 8 Oct, RPC reported revenues ahead of previous year, including organic growth c. 3%.
• Takeover deadline for private equity groups Bain and Apollo extended first to 5 Nov and again to 3 Dec.
• Shares -13.6% from 2018 highs, +18.3% from 2018 lows, -14% YTD.
• Recent share price range: Oct lows 724p; Nov highs 834pp. Currently 757p (at time of writing).
• RPC issues Half-year Results on Wednesday (28 Nov). Will we see another big move?

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Trading RPC – An Example

Let’s say you think that RPC results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of RPC using CFDs, at the current price of 757p. To do this, you need £2,000.

For the purpose of this example, let’s assume RPC reports strong results and the shares rise 10%. Your profit would be £1000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. RPC results miss, it 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.