AB Foods reports results on Tuesday, 6 November

• The chart shows the price movement last time AB Foods reported: Trading Update, 10 September.
• Shares opened +11p (+0.5%, high of the day), but fell after the open to as low as -84p (-3.7%, low of the day)
• The shares closed -13p (-0.6%) for a daily range of 95p or 4.2%.
• Shares fell after the company said its sugar division’s outlook remains weak.
• AB Foods also reiterated that sugar production and revenue will be down on last year due to significantly lower EU prices.
• Shares -17.8% from 2018 highs; +9.15% from 2018 lows; -13% year-to-date.
• Recent share price range: Sept lows 2186p; Aug highs 2480p. Currently 2450p (at time of writing).
• AB Foods publishes FY Results on Tuesday, 6 Nov.
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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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 2450p. 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 £1,000, 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.