A trading opportunity for you?

Will ConvaTec continue falling, or will it rise again back to 240p recent highs?

• ConvaTec shares have fallen 28.8% today to trade 162p (at time of writing).
• Shares -51.7% from 2018 highs; +6.7% from 2018 lows; -58.7% year-to-date.
• Company warned on lower full-year profits due to change in inventory policy at its biggest Infusion Devices customer.
• FY revenue guidance lowered to 0-1% from 2.5-3%.
• CEO is stepping down with immediate effect.
• Will the shares bounce back?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading ConvaTec – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 240p. You decide to buy exposure to £10,000 worth of ConvaTec using a CFD, at the current price of 162p. To do this, you need £2,000.

Let’s assume ConvaTec recovers back to 240p (+48%). Your profit would be £4,800, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. ConvaTec falls 10% and hits your stop-loss. Your loss would be £1,000.

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