Whitbread (owner of Premier Inn)
Is this an opportunity to take a position ahead of the results?
Whitbread issues a Q1 Trading Update on Weds, 19 Jun
- Last time Whitbread reported: FY Results, 30 Apr
- Shares fell as much as 6.3% on the day for a daily range of 258p or 5.4%.
- Currently 4696p (at time of writing). Will we see another big move on Wednesday?
- Shares -9% from 2019 highs; +5.8% from 2019 lows; +2.6% year-to-date.
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Whitbread – An Example
Let’s say you think that Whitbread results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Whitbread using CFDs, at the current price of 4696p. To do this, you need £2,000.
For the purpose of this example, let’s assume Whitbread 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 3% below the current price. Whitbread results miss, it falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.