Genel Energy
Is this an opportunity to take a position ahead of the results?
Genel Energy reports results on Wednesday (10th Oct)
- The chart shows the price movement last time Genel Energy reported (7 August).
- The shares opened just 3p higher (+1.1%) and traded as high as +35p (+13.1%)
- The shares closed the session +23p (+8.6%), for a daily trading range of 32p or 12%.
- On 7 August Genel Energy reported 85% YoY increase in revenue, 516% increase in operating profit, as well as debt to $300m (from $422m a year before).
- Shares -23.7% from 2018 highs; +118.3% from 2018 lows; +124.5% YTD.
- Recent share price range: Oct lows 224.5p; Sept highs 260.5p. Currently 241.5p (at time of writing).
- Genel Energy issues a trading and operations update on Wednesday (10 Oct). Will we see another big move?
Trading Genel Energy – An Example
Let’s say you think that Genel Energy results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Genel Energy using CFDs, at the current price of 241.5p. To do this, you need £2,000.
For the purpose of this example, let’s assume Genel Energy reports strong results and the shares rise 15%. Your profit would be £1,500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss 10% below the current price. Genel Energy results miss, it falls 10% and hits your stop-loss. Your loss would be £1,000.
This is provided for information purposes only. It should not be taken as a recommendation.