A trading opportunity for you?

Will Stobart continue falling, or will it rise again back to recent 251p September highs?

• Stobart shares have fallen over 15.7% in the past week to trade 198p (at time of writing).
• Shares -25% from 2018 highs; +2.9% from 2018 lows; -29% year-to-date.
• Transport infrastructure company reported a worsening pre-tax loss due to investments at London Southend airport.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Stobart – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 251p. You decide to buy exposure to £10,000 worth of Stobart using a CFD, at the current price of 198p. To do this, you need £2,000.

Let’s assume Stobart recovers back to 251p (+26.7%). Your profit would be £2,670, 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. Stobart 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.