Will Babcock continue falling, or will it rise again back to May’s 539p highs?

• Babcock shares have fallen over 16% in the past 3 weeks.
• Currently trades 464p (at the time of trading).
• Shares almost -19.5% from 2019 highs; +37.1% from 2019 lows; +36.1% year-to-date.
• 22 May: Babcock International Shares Down 9.8% at 457.30p after reporting a fall in Pretax Profit for FY19
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Babcock – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to the May high of 539p. You decide to buy exposure to £10,000 worth of Babcock  using a CFD, at the current price of 464p. To do this, you need £2,000.

Let’s assume Babcock recovers back to 539p (+16.1%). Your profit would be £1340, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Babcock falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.