Centex (CTX) NewsBite - Centex Rises on Government Mortgage Plan

Posted on Wednesday, March 19, 2008 1:28 PM
Centex Corp. (CTX) opened at 22.15. So far today, the stock has hit a low of 22.15 and a high of 23.47. CTX is now trading at 23.08, up 0.82 (3.69%). The stock hit its 52 week high of 49.85 in May and set its 52 week low of 17.77 in November. CTX fell through 2007, but has shown signs of rebound recently. Shares of housing stocks have been soaring today on news that the government made it easier for Freddie Mac (FRE) and Fannie Mae (FNM) to buy mortgages by lowering capital requirements. That could help lenders to increase business, which could spur demand for housing. Technical indicators for the stock are bearish and steady while S&P gives CTX a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a April bull-put credit spread below the $15 range. CTX stock could fall up to 35% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]
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