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

• Fresh speculation about takeover approach from China’s Fosun
• Fosun already owns a 17% stake in Thomas Cook
• Shares jumped 15% today  as a result
• Shares now 28.8p  (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 2019 highs of 40p. You decide to buy exposure to £10,000 worth of Thomas Cook using a CFD, at the current price of 28.8p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Thomas Cook share price rises by 30%. Your profit would be £3000, 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.