A trading opportunity for you?
Will Kier continue falling, or will it rise again back to 777p recent highs?
- Kier share price as low as -7.7% today, close to -50% from last week’s highs.
- Now trading at 394p (at the time of writing).
- Shares falling after the construction company announced a £264m rights issue.
- 4 Dec: Canaccord Genuity says the rights issue will probably boost Kier’s balance sheet, though the company’s working-capital position may worsen.
- Due to the fall in capitalisation, Kier is likely to be relegated out of FTSE 250 mid-cap index.
- Shares are down over -66.2% from 2018 highs, now trading at 2018 lows, -63.6% year-to-date.
- Can the shares regain recent highs?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Kier – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 777p. You decide to buy exposure to £10,000 worth of Kier using a CFD, at the current price of 394p. To do this, you need £2,000.
Let’s assume Kier recovers back to recent highs of 777p (+97.2%). Your profit would be £9720, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Kier falls 8% and hits your stop-loss. Your loss would be £800.
This is provided for information purposes only. It should not be taken as a recommendation.