Ferguson
Is this an opportunity to take a position ahead of the results?
Ferguson reports full year results on Tues, 2nd October
- The chart shows the price movement last time Ferguson reported (19 June).
- The shares opened +110p (+1.9%), traded as high as +168p (+2.9%)
- They fell as low as +36p (+0.6%) and closed +110p (+1.9%), for a daily trading range of 2.2%.
- Q3 results beat market’s expectations, with both revenue (+10% YoY) and trading profit (+17% YoY) rising.
- US saw particularly strong growth (Source: DowJones)
- Shares +30.6% from 2018 lows, -0.3% from 2018 highs, +23% year-to-date.
- Recent share price range: Late-Aug lows 6015p; September record highs 6,577p. Currently 6,557p (at time of writing).
- Ferguson issues a full-year results on Tuesday (2 Oct). Will we see another big move?
Trading Ferguson – An Example
Let’s say you think that Ferguson results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Ferguson using CFDs, at the current price of 6,557p. To do this, you need £2,000.
For the purpose of this example, let’s assume Ferguson reports strong results and the shares rise 5%. Your profit would be £500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 3% below the current price. Ferguson results miss, it falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.