A trading opportunity for you?

Will Sophos continue falling, or will it rise again back to 545p August highs?

• The price has fallen close to 7% in one week.
• Shares are down close to 30% from 2018 highs, but still +18.6% year-to-date.
• A rating downgrade from Deutsche Bank (17 Sept) contributed to the September fall.
• Analysts at Deutsche Bank say that competition is making it hard for Sophos to meet guidance.
• Latest Sophos trading update (26 Jul), however, noted strong demand and a double-digit increase in billings from new customers, though overall billings missed expectations.
• It has been as high as 545p in August, and as low as 469p. It is now at 475.3p.

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Trading Sophos – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 545p August highs again. You decide to buy exposure to £10,000 worth of Sophos using a CFD, at the current price of 475.3p. To do this, you need £2,000.

Let’s assume Sophos recovers back to 545p. Your profit would be £1,466, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Sophos falls 8% and hits your stop-loss. Your loss would be £800.

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