Will Vectura continue falling, or will it rise again back to 80.4p?

• The price has fallen over 8.5% today after the drug manufacturer reported failure of its asthma treatment trial.
• It has been as high as 80.4p in November. It is now at 71.2p (at the time of writing).
• 8 Nov: Rival Hikma Pharmaceuticals announced a tie-up with Vectura to collaborate on the development of generic versions of GSK’s Ellipta  drugs.
• Shares -42.2% from 2018 highs; +6.3% from 2018 lows; -40% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Vectura – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards November highs of 80.4p again. You decide to buy exposure to £10,000 worth of Vectura using a CFD, at the current price of 71.2p. To do this, you need £2000.

Let’s assume Vectura recovers back to 80.4p (+12.9%). Your profit would be £1290, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Vectura falls 4% and hits your stop-loss. Your loss would be £400.

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