Will Rentokil turn, or will it continue to rise back to 477p record highs?

• Shares in a 3 week long uptrend from 343p January lows; now trading at 375p.
• The shares have risen by 9.5%. Will this momentum continue?
• Shares -0.57% from 2019 highs; +15.33% from 2018 lows; +10.85% year-to-date.
• 4 Dec: Agreed to transfer £1.5bn in pension liabilities in a deal with Pension Insurance Corporation.
• The transfer will remove all future pension liabilities from Rentokil’s balance sheet and is expected to leave a small cash surplus.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Rentokil – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Rentokil using a CFD, at the current price of 375p. To do this, you need £2,000.

Let’s assume Rentokil trend continues to 1998’s 477p record highs (+27%). Your profit would be £2700, 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. Rentokil 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.