Informa
Is this an opportunity to take a position ahead of the results?
Informa reports results on Friday, 9 November
- The chart shows the price movement last time Informa reported: H1 Results, 25 July.
- Shares opened +18.6p (+2.2%, high of the day), then fell as low as -35.2p (-4.1%, low of the day).
- The shares closed -34p (-4%) for a daily range of 54.2p or 6.4%.
- Shares fell after the publishing company’s profits fell on high M&A costs (£3.9bn takeover of smaller rival UBM).
- Shares -20.1% from 2018 highs; +5.7% from 2018 lows; -3.77% year-to-date.
- Recent share price range: Nov lows 691p; Oct highs 757p. Currently 694p (at time of writing).
- Informa publishes a Q3 Trading Update on Friday, 9 Nov.
- Will we see another big move?
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Informa – An Example
Let’s say you think that Informa results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Informa using CFDs, at the current price of 694p. To do this, you need £2,000.
For the purpose of this example, let’s assume Informa 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. Informa 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.