Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make Ophir Energy’s share price attractive?

• The chart shows Ophir’s share price movements since August.
• Shares +50.5% from 2018 lows; -9.1% from 2018 lows; -42.6% year-to date
• GMP upgraded Ophir to Speculative Buy (from Hold) and upped its target price to 70p (from 60p).
• Consensus summary: 4 Buys, 8 Holds, 0 Sell; Average target: 56.9p (Source: Bloomberg).
• Current share price 38.95p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 53.5p July highs?

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Trading Ophir – An Example

Let’s say you think that Ophir shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ophir using a CFD, at the current price of 38.95p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Ophir share price rises to 53.5p July highs (+37.4%). Your profit would be £3740 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Ophir shares continue their July downtrend, they fall 5% and hit your stop-loss. Your loss would be £500.

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