LONDON, July 16, 2012 /PRNewswire/ --
Security firm G4S suffered significant losses on the London Stock Exchange this morning as the staffing fiasco threatened to put a serious dent in the company's profit potential and investors confronted fears that the Olympics fiasco may impact the firm's long-term profit prospects.
Below, we look at the news surrounding G4S, how this has affected their share price and how you can trade with a Finspreads spread betting account today.
Profit Forecast Lowered £60m
Over the weekend, G4S chief executive Nick Buckles admitted that the staffing shambles might cost the company as much as £50 million of its high-profile Olympics contract. Following the announcement, brokerage firm Seymour Pierce removed its 'buy' rating for G4S and lowered its profit forecast by £60 million for the current year.
Mr Buckles, meanwhile, who has offered to 'consider resigning over the debacle', is due to appear before the home affairs select committee tomorrow.
Not surprisingly, G4S stocks plummeted nearly 10% during early trading today (Monday, July 16) as investors confronted fears that the company may struggle to find new work.
Will G4S shares continue to tumble?
The security firm is now bracing itself for the onslaught of the staff shortage fiasco and may have to significantly shore up its defences if it is to stop shares from sliding further in the coming days.
With this in mind, which way do you expect G4S shares to move in the coming days?
How to Spread Bet G4S Shares
As a spread betting investor, you can profit from any price movement in G4S shares, irrespective of whether you expect the company to weather the crisis and emerge stronger, or get swept away as the controversy deepens.
To profit, all you need to do is determine whether you anticipate G4S shares to rise or fall in the coming days and take a position accordingly.
If, for example, you expected G4S shares to rise, you would go long (or 'buy') G4S shares and your profits would rise in line with any increase in the company's share price.
Conversely, if you expected G4S shares to tumble further, you would go short (or 'sell') G4S shares and your profits would rise with any fall in the company's share price. You would profit so long as prices moved in the direction you had expected.
If, however, you expect G4S shares to rise but they fall instead, or if you expect G4S shares to fall further and they rise instead, you would make a loss.
Spread betting is a tax-free* alternative to conventional trading and is a great tool to speculate on volatile markets.
Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
*Spread betting is exempt from UK stamp duty and Capital Gains Tax (CGT). However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
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