LG Display (LPL) NewsBite - LPL Sells Part of Stake in LG Display

Posted on Wednesday, March 12, 2008 10:42 AM

LG Display (LPL) opened at $23.22. So far today the stock has hit a low of $21.88 and a high of $23.44. LPL is now trading at $22.65, down 1.93 (-7.85%). After hitting a one-year low of $15.87 last March, the stock hit a one-year high of $31.29 in November. LPL shares are plummeting on news that Philips sold about $1 billion worth of its stake in LG Display. The company sold the shares at a discount of 4.8 to 8.1 percent, according to news reports, and the deal will reduce Philips stake in the company to 13.5 percent from 19.9 percent. Technical indicators for LPL are neutral and improving, 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 an April bear-call credit spread above the $25 range. LPL hasn't been above 25 since falling off by twenty percent at the beginning of the month. The stock could gain up to 10.3% before this trade runs into trouble. [LHF- Seven Summits Strategic Investments NewsBite]