LM Ericsson (ERIC) Shows Bullish Technicals With S&P 4 Star Buy Rating

Posted: Thursday, October 29, 2009 9:06 AM EDT

LM Ericsson (NasdaqNM: ERIC) closed yesterday at $10.33. So far the stock has hit a 52-week low of $5.49 and 52-week high of $10.92. Ericsson stock has been showing support around 10.21 and resistance in the 10.51 range. Technical indicators for the stock are Bullish and S&P gives ERIC a positive 4 STAR (out of 5) buy rating. ERIC appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at an Apr '10 10 covered call (RQC DB) for a net debit in the $9.08 area. That is also the break even stock price for this trade. This covered call has a 170 day duration, provides 12.10% downside protection and a 10.13% assigned return rate for a 21.75% annualized return rate (comparison purposes only). Ericsson has a current annual dividend yield of 1.55%. [THA-Seven Summits Research]

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