Brookfield Asset Management (BAM) 11/23/09 PriceWatch Alert Targets 19.21% Return

Posted: Monday, November 23, 2009 8:32 AM EDT

Brookfield Asset Management (NYSE: BAM) closed yesterday at $20.69. So far the stock has hit a 52-week low of $11.21 and 52-week high of $24.34. Brookfield Asset Management stock has been showing support around 20.24 and resistance in the 20.96 range. Technical indicators for the stock are Bearish and S&P gives BAM a neutral 3 STAR (out of 5) hold rating. BAM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Mar '10 20 covered call (BAM CD) for a net debit in the $18.84 area. That is also the break even stock price for this trade. This covered call has an 117 day duration, provides 8.94% downside protection and a 6.16% assigned return rate for a 19.21% annualized return rate (comparison purposes only). Brookfield Asset Management has a current annual dividend yield of 2.44%. [ABR-Seven Summits Research]

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