Does this present a Takeover opportunity for you?
Will RPC get yet another takeover offer? Could the shares benefit?
- RPC accepts new 793p offer from Berry Global
- Rejects previously accepted 782p offer from Apollo
- Shares now at 784p (at time of writing)
- Will Apollo come back with another offer? Could expectations drive RPC even higher?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading RPC – An Example
Let’s say you think that RPC is likely to rise further as a result of a takeover offer, towards recent highs of 834p. You decide to buy exposure to £10,000 worth of RPC using a CFD, at the current price of 784p. To do this, you need £2,000.
For the purpose of this example, let’s assume the RPC share price rises by 10%. Your profit would be £1000, 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. Sentiment towards a deal turns sour and RPC shares 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.