Pennon reports results on Tues, 27 November

• The chart shows the price movement last time Pennon reported: Trading Statement, 24 Sept
• Shares opened +6.6p (+0.9%; high of day) went as lows as -18p (-2.5%)
• The shares closed at the low of the day -18p (-2.5%) for a daily range of 24.6p or 3.4%.
• Shares -7.9% from 2018 highs; +29.9% from 2018 lows; -4.9% year-to-date.
• Currently 745p (at time of writing).
• Pennon reports H1 results on Tues, 27 November
• 16 Nov: Pennon doubles stake in Runcorn wast management facility for £54.5 m
• 24 Sept: Pennon says on track to meet FY expectations
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Pennon – An Example

Let’s say you think that Pennon results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Pennon using CFDs, at the current price of 745p. To do this, you need £2,000.

For the purpose of this example, let’s assume Pennon reports strong results and the shares rise 10%. Your profit would be £1000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 5% below the current price. Pennon 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.