JM Smucker (SJM) 11/27/09 PriceWatch Alert Shows Bullish Technicals

Posted: Thursday, November 26, 2009 8:25 AM EDT

JM Smucker (NYSE: SJM) closed yesterday at $58.76. So far the stock has hit a 52-week low of $34.09 and 52-week high of $59.30. JM Smucker stock has been showing support around 57.92 and resistance in the 59.72 range. Technical indicators for the stock are Bullish 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 60 covered call (SJM AL) for a net debit in the $57.66 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 1.87% downside protection and a 4.06% assigned return rate for a 29.63% annualized return rate (comparison purposes only). JM Smucker has a current annual dividend yield of 2.48%. [FBB-Seven Summits Research]

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