Whitbread (owner of Premier Inn)
Is this an opportunity to take a position ahead of the results?
Whitbread reports results on Thursday, 17 Jan
- The chart shows the price movement last time Whitbread reported: H1 Results, 23 Oct
- Shares opened -101p lower (-2.3%) and rose as high as -60p (-1.3%), but fell as low as -150p (-3.4%)
- The shares closed -68p (-1.5%) for a daily range of 90p or 2%.
- Shares -0.9% from 2018 highs; +37.5% from 2018 lows; +6.9% year-to-date.
- Whitbread publishes a Q3 Trading Update on Thursday 17 Jan
- Currently 4894p (at time of writing). Will we see another big move?
- 3 Jan: Coca-Cola closes £3.9bn acquisition of Costa from Whitbread
- 21 Dec: Whitbread expects to buy back a maximum of £500m worth of shares after Costa sale
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading Whitbread – An Example
Let’s say you think that Whitbread results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Whitbread using CFDs, at the current price of 4894p. To do this, you need £2,000.
For the purpose of this example, let’s assume Whitbread 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 position, and place a stop-loss 3% below the current price. Whitbread 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.