Valspar (VAL) Down 1.7% On Friday But Still Trading Near Its 52 Week High

Posted: Monday, October 26, 2009 8:35 AM EDT

Valspar (NYSE: VAL) ended the last trading session at $26.45. So far the stock has hit a 52-week low of $14.47 and 52-week high of $28.60. Valspar stock has been showing support around 25.84 and resistance in the 27.40 range. Technical indicators for the stock are Bearish and S&P gives VAL a neutral 3 STAR (out of 5) hold rating. VAL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (VAL DE) for a net debit in the $23.85 area. That is also the break even stock price for this trade. This covered call has a 173 day duration, provides 9.83% downside protection and a 4.82% assigned return rate for a 10.17% annualized return rate (comparison purposes only). Valspar has a current annual dividend yield of 2.28%. [ABR-Seven Summits Research]

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