Babcock reports results on Weds, 21 November

• The chart shows the price movement last time Babcock reported: Trading Update, 19 September.
• Shares opened +8p (+1.2%; low of the day) and moved as high as +40.6p (+5.9%)
• The shares closed +23.6p (+3.4%) for a daily range of 32.6p or 4.7%.
• Shares -32.7% from 2018 highs; +2.3% from 2018 lows; -16.0% year-to-date.
• Currently 593p (at time of writing).
• Babcock is a diverse British engineering company (marine, land, aviation, nuclear)
• Babcock publishes Half-year Results on Weds, 21 Nov.
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Babcock – An Example

Let’s say you think that Babcock results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Babcock using CFDs, at the current price of 593p. To do this, you need £2,000.

For the purpose of this example, let’s assume Babcock 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 3% below the current price. Babcock 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.