Will anything come of this speculation? Could Thomas Cook shares benefit?

• Citigroup says airline sale could pave way for takeover of tour operator
• Already speculation that 15% shareholder could launch a bid
• Shares now 33p  (at time of writing)
• Will this speculation prove much ado about nothing, or could a deal emerge?
• If speculation intensifies could it drive Thomas Cook shares higher?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Thomas Cook – An Example

Let’s say you think that Thomas Cook is likely to rise further as a result of a takeover offer, towards, perhaps even above, Oct 55p highs. You decide to buy exposure to £10,000 worth of Thomas Cook using a CFD, at the current price of 33p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Thomas Cook share price rises by 25%. Your profit would be £2500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sentiment towards the deal sours and Thomas Cook Thomas Cook and hit your stop-loss. Your loss would be £500.

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