Does this present a Takeover opportunity for you?
Will anything come of this speculation? Could Vectura shares benefit?
- N+1 Singer says patent-infringement legal case (awarded $90m) against GSK could revive takeover interest
- Speculation last year that Vectura it could be a target for Glaxo and Novartis
- Shares jumped 12.5% yesterday on the above news
- Shares now 79.3p (at time of writing)
- Will this fresh speculation prove much ado about nothing, or could a deal emerge?
- If speculation intensifies could it drive Vectura shares higher?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Vectura – An Example
Let’s say you think that Vectura is likely to rise further as a result of a takeover offer, towards Dec 2017 highs of 127p. You decide to buy exposure to £10,000 worth of Vectura using a CFD, at the current price of 79.3p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Vectura share price rises by 30%. Your profit would be £3000, 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 the deal sours and Vectura 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.