Will Thomas Cook continue falling, or will it rise again back to 55.3p November highs?

• Travel operator’s share price continues falling after an earlier profits warning.
• Shares as low as -10% today, currently trading at 35.6p (at the time of writing).
• Shares are down over -75% from 2018 highs, +7% from 2018 lows, -71.5% year-to-date.
• Thomas Cook warns on profits; FY earnings -18.8%, suspends dividend;
• Thomas Cook previously warned on profits on 24 September due to weak summer bookings.
• Summer heatwave caused customers to put off trips, leading to lower price rises.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Thomas Cook – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards November high of 55.3p. You decide to buy exposure to £10,000 worth of Thomas Cook using a CFD, at the current price of 35.6p. To do this, you need £2,000.

Let’s assume Thomas Cook recovers back to 55.3p (+55.3%). Your profit would be £5530, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Thomas Cook falls 9% and hits your stop-loss. Your loss would be £900.

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