Will Kier continue falling, or will it rise again back to 777p recent highs?

• Kier share price as low as -7.7% today, close to -50% from last week’s highs.
• Now trading at 394p (at the time of writing).
• Shares falling after the construction company announced a £264m rights issue.
• 4 Dec: Canaccord Genuity says the rights issue will probably boost Kier’s balance sheet, though the company’s working-capital position may worsen.
• Due to the fall in capitalisation, Kier is likely to be relegated out of mid-cap index.
• Shares are down over -66.2% from 2018 highs, now trading at 2018 lows, -63.6% year-to-date.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Kier – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 777p. You decide to buy exposure to £10,000 worth of Kier using a CFD, at the current price of 394p. To do this, you need £2,000.

Let’s assume Kier recovers back to recent highs of 777p (+97.2%). Your profit would be £9720, 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. Kier 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.