InterContinental Hotels
A trading opportunity for you?
Will InterContinental Hotels continue falling, or will it rise again back to 4,821p October highs?
- InterContinental Hotels shares have fallen over 18% in 3 weeks to trade 3,893p (at time of writing).
- Shares almost -16.5% from 2018 highs; +2% from 2018 lows; -17.5% year-to-date.
- Latest results disappointed, with revenue per available room missing market expectations.
- Occupancy in US fell due to lower demand after the hurricane season.
- Can the stock recover back to October highs?
- Source: Dow Jones, Bloomberg, FT, Company News
Trading InterContinental Hotels – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 4,821p. You decide to buy exposure to £10,000 worth of InterContinental Hotels using a CFD, at the current price of 3,893p. To do this, you need £2,000.
Let’s assume InterContinental Hotels recovers back to 4,821p (+23.8%). Your profit would be £2,380, 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. InterContinental Hotels 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.