BHP Billiton PLC (BBL) Gets S&P 3 Star Hold Rating But Showing Bullish Technicals

Posted: Wednesday, October 28, 2009 9:15 AM EDT

BHP Billiton PLC (NYSE: BBL) closed yesterday at $57.71. So far the stock has hit a 52-week low of $21.06 and 52-week high of $61.69. BHP Billiton stock has been showing support around 56.73 and resistance in the 59.49 range. Technical indicators for the stock are Bullish and S&P gives BBL a neutral 3 STAR (out of 5) hold rating. BBL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Dec '09 55 covered call (BBL LK) for a net debit in the $52.71 area. That is also the break even stock price for this trade. This covered call has a 52 day duration, provides 8.66% downside protection and a 4.34% assigned return rate for a 30.50% annualized return rate (comparison purposes only). BHP Billiton has a current annual dividend yield of 2.74%. [WBA-Seven Summits Research]

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