Is this an opportunity to take a position ahead of the results?

Ashmore reports results on Friday (12th Oct)

• The chart shows the price movement last time Ashmore reported: FY18 results, 7 Sept.
• The shares opened 6.8p higher (+2%) and went as high as +11.46p (+3.3%).
• Shares fell as low as -5.2p (-1.5%) but closed +4.8p (+1.4%) for a daily range of 16.6p (4.8%).
• 7 Sept: FY assets under management +26%; “Outlook remains positive despite more volatile prices”
• Shares -21.2% from 2018 highs; +5.4% from 2018 lows; -14.1% year-to-date.
• Recent share price range: Aug lows 334p; Sept highs 375p. Currently 348p (at time of writing).
• Ashmore issues a Q1 Assets Under Management update on Friday (12 Oct).
• Will we see another big move?

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Trading Ashmore – An Example

Let’s say you think that Ashmore results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Ashmore using CFDs, at the current price of 348p. To do this, you need £2,000.

For the purpose of this example, let’s assume Ashmore reports strong results and the shares rise 5%. Your profit would be £500, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. Ashmore 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.