Softcat
Is this an opportunity to take a position ahead of the results?
Softcat reports results on Wednesday (28 Nov)
- The chart shows the price movement last time Softcat reported (FY Results, 17 Oct).
- The shares opened -6p (-0.8%), which was the high of the day.
- The shares fell as low as -91p (-11.5%, low of the day), for a daily trading range of 85p or 10.7%.
- Shares fell despite a 35% profit jump after the company cautioned that it had benefited from exceptional market conditions during the year.
- Shares -32% from 2018 highs, +19.8% from 2018 lows, +14.2% YTD.
- Recent share price range: Nov lows 583p; Nov highs 683p. Currently 594p (at time of writing).
- Softcat issues a Trading Update on Wednesday (28 Nov). Will we see another big move?
Trading Softcat – An Example
Let’s say you think that Softcat results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Softcat using CFDs, at the current price of 594p. To do this, you need £2,000.
For the purpose of this example, let’s assume Softcat 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. Softcat 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.