Debenhams
Is this an opportunity to take a position ahead of the results?
Debenhams issues a Christmas Trading Statement on Thurs, 10 Jan
- The chart shows the price movement last time Debenhams reported: Full-year Results, 25 Oct
- Shares opened flat, went as low as -0.5p (-6.1%) and as high as +1.7p (+20.1%).
- The shares closed +0.6p (+7%) for a daily range of 2.2p or 26.2%.
- Shares currently trade at 4.3p (at time of writing)
- Shares -88.3% from 2018 highs; +5% from 2018 lows; -87.6% year-to-date.
- Debenhams publishes a Christmas Trading Statement, Thurs 10 Jan. Will we see another big move?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Debenhams – An Example
Let’s say you think that Debenhams results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Debenhams using CFDs, at the current price of 4.3p. To do this, you need £2,000.
For the purpose of this example, let’s assume Debenhams 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. Debenhams 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.