Will Convatec continue falling, or will it rise again back to 148p this week’s highs?

• Convatec shares -21% after reporting “disappointing results”.
• Medical company missed its full-year guidance.
• Shares trading all-time lows. Now trades 119p (at time of writing).
• Shares -19.5% from 2019 highs; currently trades 2019 lows; -15.4% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Convatec – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 146p recent highs. You decide to buy exposure to £10,000 worth of Convatec using a CFD, at the current price of 119p. To do this, you need £2,000.

Let’s assume Convatec recovers back to 148p this week’s highs (+24.3%). Your profit would be £2430, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Convatec falls 5% and hits your stop-loss. Your loss would be £500.

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