A trading opportunity for you?

Will Serco continue falling, or will it rise again back to 104p August highs?

• The price has fallen over 7.6% in one week.
• Shares are down close to 15.6%% from 2018 highs, but bounced 10% from 2018 lows, -8.8% year-to-date.
• Outsourcing company has been under shadow ever since cutting revenue guidance in June.
• Recent contract with Australian military in August could help future cash flows.
• It has been as high as 104p in August, and as low as 89.7p. It is now at 90p.

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Trading Serco – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards August high of 104p. You decide to buy exposure to £10,000 worth of Serco using a CFD, at the current price of 90p. To do this, you need £2,000.

Let’s assume Serco recovers back to 104p (+15.5%). Your profit would be £1,550, 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. Serco 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.