JM Smucker (SJM) 11/9/09 PriceWatch Alert Targets 35.04% Return

Posted: Monday, November 09, 2009 8:40 AM EDT

JM Smucker (NYSE: SJM) ended the last trading session at $52.68. So far the stock has hit a 52-week low of $34.09 and 52-week high of $55.36. JM Smucker stock has been showing support around 52.07 and resistance in the 53.21 range. Technical indicators for the stock are Bearish and S&P gives SJM a very positive 5 STAR (out of 5) strong buy rating. SJM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 55 covered call (SJM AK) for a net debit in the $51.63 area. That is also the break even stock price for this trade. This covered call has a 68 day duration, provides 1.99% downside protection and a 6.53% assigned return rate for a 35.04% annualized return rate (comparison purposes only). JM Smucker has a current annual dividend yield of 2.69%. [ABR-Seven Summits Research]

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