Superdry
A trading opportunity for you?
Will Superdry continue falling, or will it rise again back to 1,231p August highs?
- Superdry shares have fallen over 30% in the past 4 weeks to trade 817p (at time of writing).
- Shares almost -52% from 2018 highs; +6.7% from 2018 lows; -58.5% year-to-date.
- Company’s shares hit by a profits warning, with Superdry expecting £18m lower 2019 profits.
- Hot weather conditions and FY headwinds contributing to lower profits.
- ource: Dow Jones, Bloomberg, FT, Company News
Trading Superdry – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 1,231p. You decide to buy exposure to £10,000 worth of Superdry using a CFD, at the current price of 817p. To do this, you need £2,000.
Let’s assume Superdry recovers back to 1,231p (+50%). Your profit would be £5,000, 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. Superdry 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.