Centex Corp. (CTX) NewsBite - CTX Rises On Analyst's Comments

Posted on Monday, January 28, 2008 1:20 PM

Centex Corp. (CTX) opened at $26.23. So far today the stock has hit a low of $25.01 and a high of $27.16. CTX is now trading at $27.34, up 0.96 (3.64%). After hitting a one-year high of $55.62 in February, the stock hit a one-year low of $17.77 in November. Shares of CTX are rising along with other homebuilders despite news that sales of new homes dropped by 26.4 percent last year to 774,000, the worst year on record. Analysts are speculating that the housing market may have bottomed out last year, and that lower prices might lead to a sales rebound. In a note to investors, Banc of America analyst Daniel Oppenheim wrote that lower home prices resulting from two years of decline in the housing market "will likely help to spur sales activity in coming months." Technical indicators for CTX are bullish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating. If you’re looking for a hedged play on this stock, consider a March bull-put credit spread below the $15 range. CTX hasn't been below 15 at all in the past year. The stock could lose up to 45.1% before this trade runs into trouble. [LHF- Seven Summits Strategic Investments NewsBite]