Will G4S continue falling, or will it rise again back to 211p yesterday’s highs?

• G4S fallen over 7.8% today, before bouncing +2.5% from the lows.
• The security company settled a class action suit for $100-130m in the US.
• Now trades 198p (at time of writing).
• Shares -10% from 2019 highs; +2% from 2019 lows; +0.66% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading G4S – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 211p. You decide to buy exposure to £10,000 worth of G4S using a CFD, at the current price of 198p. To do this, you need £2,000.

Let’s assume G4S recovers back to 211p yesterday’s highs (+6.5%). Your profit would be £650, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. G4S falls 3% and hits your stop-loss. Your loss would be £300.

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