Severn Trent
Is this an opportunity to take a position ahead of the results?
Severn Trent reports results on Thurs, 22 November
- The chart shows the price movement last time Severn Trent reported: Trading Update, 18 Jul
- Shares opened -0.5p (-0.0%) went as low as -50p (-2.6%) and moved as high as +5p (+0.3%)
- The shares closed -10.5p (-0.6%) for a daily range of 55p or 2.9%.
- Shares -14.9% from 2018 highs; +11.4% from 2018 lows; -12.6% year-to-date.
- Currently 1890p (at time of writing).
- Severn Trent reports H1 Results on Thurs, 22 Nov.
- Will we see another big move?
- Severn Trent is a UK water utilities company
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Severn Trent – An Example
Let’s say you think that Severn Trent results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Severn Trent using CFDs, at the current price of 1890p. To do this, you need £2,000.
For the purpose of this example, let’s assume Severn Trent 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. Severn Trent 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.