Will Saga continue falling, or will it rise again back to recent 1725p September highs?

• Hiscox shares have fallen over 10% in the past month.
• Currently trading at 1530p (at time of writing).
• Shares -4.6% from 2018 highs; +28.3% from 2018 lows; +4.3% year-to-date.
• Recent share price range: Oct lows 1517p; Oct highs 1714p.
• Latest results disappointed, as the insurance company pointed to “moderate” growth through rest of year after natural catastrophes and large claims in North America and the Far East.
• Brexit preparations are expected to impact revenue by $15m in 2018.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Hiscox – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 1725p. You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price of 1530p. To do this, you need £2,000.

Let’s assume Hiscox recovers back to 1725p (+12.7%). Your profit would be £1270, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Hiscox falls 7% and hits your stop-loss. Your loss would be £700.

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