Fortune Brands (FO) Showing Bearish Technicals With Neutral 3 STARs S&P Rating

Posted: Monday, November 23, 2009 9:13 AM EDT

Fortune Brands (NYSE: FO) closed yesterday at $38.53. So far the stock has hit a 52-week low of $17.68 and 52-week high of $46.77. Fortune Brands stock has been showing support around 37.34 and resistance in the 39.34 range. Technical indicators for the stock are Bearish and S&P gives FO a neutral 3 STAR (out of 5) hold rating. FO appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Mar '10 35 covered call (FO CG) for a net debit in the $33.43 area. That is also the break even stock price for this trade. This covered call has an 117 day duration, provides 13.24% downside protection and a 4.70% assigned return rate for a 14.65% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.91%. [ABR-Seven Summits Research]

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