Babcock
A trading opportunity for you?
Will Babcock continue falling, or will it rise again back to recent 632p November highs?
- Babcock shares have fallen over 11% today to trade 523p (at time of writing).
- Shares -39.8% from 2018 highs; now trading at 2018 lows; -25.6% year-to-date.
- Defense company announced £120m in exceptional costs after closing its Appledore shipyard.
- Recent share price range: Nov highs 6325p; now trading at recent lows.
- Can the stock regain recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News
Trading Babcock – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 632p. You decide to buy exposure to £10,000 worth of Babcock using a CFD, at the current price of 523p. To do this, you need £2000.
Let’s assume Babcock recovers back to 632p (+20.8%). Your profit would be £2080, from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Babcock falls 9% and hits your stop-loss. Your loss would be £900.
This is provided for information purposes only. It should not be taken as a recommendation.