DFS Furniture
Is this an opportunity to take a position ahead of the results?
DFS Furniture reports results tomorrow (Thurs, 4th Oct)
- The chart shows the price movement last time DFS reported (12 July).
- The shares opened -23.4p (-11.8%; lows of the day) and traded as high as +3.9p (+2%).
- The shares closed +1.4p (+0.7%), for a daily trading range of 27.3p or 13.7%.
- On 12 July DFS warned of the impact of hot weather on order intake
- Shares -14.8% from 2018 highs, +25.3% from 2018 lows, +7.5% YTD.
- Recent share price range: Sept lows 203p; Late-Aug highs 225p. Currently 210.75p (at time of writing).
- DFS reports Full year Results on Thursday (4 Oct). Will we see another big move?
Trading DFS – An Example
Let’s say you think that DFS results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of DFS using CFDs, at the current price of 210.75p. To do this, you need £2,000.
For the purpose of this example, let’s assume DFS reports strong results and the shares rise 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 4% below the current price. DFS results miss, it 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.