B&M European Value Retail
A trading opportunity for you?
Will B&M continue falling, or will it rise again back to November high of 431p?
- B&M shares have fallen 10% today.
- Discount retail chain noted slowing revenue growth due to outdoor product shortage.
- Currently trading at 366p (at time of writing).
- Shares -18% from 2018 highs; +3.6% from 2018 lows; -13.9% year-to-date.
- Recent share price range: Nov lows 353p; Nov highs 431p.
- Can the stock recover to yesterday’s highs?
- Source: Dow Jones, Bloomberg, FT, Company News
Trading B&M – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 431p. You decide to buy exposure to £10,000 worth of B&M using a CFD, at the current price of 366p. To do this, you need £2,000.
Let’s assume B&M recovers back to 431p November high (+17.7%). Your profit would be £1770, from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. B&M falls 8% and hits your stop-loss. Your loss would be £800.
This is provided for information purposes only. It should not be taken as a recommendation.