Will Saga continue falling, or will it recover yesterday’s 106p close?

• Saga shares fell as much as 39% this morning
• It has already bounced by 8.6% to trade 70p (at time of writing)
• Shares -44.6% from 2019 highs; +8.6% from 2019 lows; -32.6% year-to-date.
• Can the stock recover yesterday’s 106p close?
• 4 Apr: Saga expects lower FY 2020 profits on new insurance strategy; cuts dividend
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Saga – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 106p highs. You decide to buy exposure to £10,000 worth of Saga using a CFD, at the current price of 70p. To do this, you need £2,000.

Let’s assume Saga recovers back to 106p highs (+51%). Your profit would be £5100, 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. Saga 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.