As a cautious trader you may be in the habit of looking at Broker Views, after all brokers spend a lot of time constructing them.
As you can see there was no hint that the brokers covering Carillion were terribly concerned.
Clearly it was possible that this was a short term blip and in a few months everything would have been back to normal.
The drop was caused by an unexpected reporting of an expected reduction in revenue of £875m, this was not just jitters by spooked traders this was something fundamentally wrong.
If you hadn't got out before the drop and closure:
- If you had split your share holdings into five different companies then you would have lost 20% of your total capital.
- If you had split your share holdings into ten different companies then you would have lost 10% of your total capital.
If you have been following conventional thinking, holding long term and reinvesting your dividends then you have lost all of your dividend income as well.