AB Foods
Is this an opportunity to take a position ahead of the results?
AB Foods reports Q2 Trading Update on Monday, 25 Feb
- Last time AB Foods reported: Trading Update, 17 Jan.
- The shares closed +7% for a daily range of 87p or 4%.
- Shares -4.35% from 2019 highs; +15.8% from 2019 lows; -14% year-to-date.
- Currently 2300p (at time of writing).
- Will we see another big share price move on Monday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading AB Foods – An Example
Let’s say you think that AB Foods results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of AB Foods using CFDs, at the current price of 2300p. To do this, you need £2,000.
For the purpose of this example, let’s assume AB Foods 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 position, and place a stop-loss 5% below the current price. AB Foods results miss, it falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.