RPC
Is this an opportunity to take a position ahead of the results?
RPC reports results on Monday (8th Oct)
- The chart shows the price movement last time RPC reported (18 July).
- The shares opened -10p (-1.3%) which was the high of the day.
- The shares fell as low as -61.2p (-7.9%) and closed -27.6p (-3.6%), for a daily trading range of 51.2p or 6.6%.
- On 18 July RPC reported Q1 revenues +5.8% and profits in-line with expectations.
- Private Equity Bain and Apollo have a deadline of Monday 8th October to make bids or walk away .
- Shares -6.0% from 2018 highs, +28.8% from 2018 lows, -6.3% YTD.
- Recent share price range: Sept lows 680p; Sept highs 858pp. Currently 825p (at time of writing).
- RPC gives a Q2 Trading Statement on Monday (8 Oct). Will we see another big move?
Trading RPC – An Example
Let’s say you think that RPC results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of RPC using CFDs, at the current price of 824.5p. To do this, you need £2,000.
For the purpose of this example, let’s assume RPC 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 3% below the current price. RPC 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.