Will Rentokil turn, or will it continue to rise back to 477p record highs?

• The chart shows the Rentokil price action since late November.
• Shares in a weeklong uptrend from 324p January lows; now at 353p.
• Shares -0.8% from 2019 highs; +7.65% from 2018 lows; +4.7% year-to-date
• In the last week, the shares have risen close to 7%. Will this momentum continue?
• 4 Dec: Agreed to transfer £1.5bn in pension liabilities in a deal with Pension Insurance Corporation.
• The transfer will remove all future pension liabilities from Rentokil’s balance sheet and is expected to leave a small cash surplus.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Rentokil – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Rentokil using a CFD, at the current price of 353p. To do this, you need £2,000.

Let’s assume Rentokil trend continues to 1998’s 477p record highs (+35.1%). Your profit would be £3510, 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. Rentokil 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.