Will De La Rue continue falling, or will it recover to 440p?

• Shares -27% from yesterday’s highs; Now trading 335p (at time of writing).
• Can the stock recover to recent 440p highs?
• Shares -26.2% from 2019 highs; +0.0% from 2019 lows; -18.7% year-to-date.
• 30 May: Shares plunge after exceptional costs hurt profits
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading De La Rue – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 440p. You decide to buy exposure to £10,000 worth of De La Rue using a CFD, at the current price of 334p. To do this, you need £2,000.

Let’s assume De La Rue recovers back to 440p (+31%). Your profit would be £3100, 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. De La Rue falls 5% and hits your stop-loss. Your loss would be £500.

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