China Unicom (CHU) NewsBite - China Unicom Rallying on DT Earnings

Posted on Thursday, May 08, 2008 11:59 AM

China Unicom Ltd. (CHU) opened at 21.75. So far today, the stock has hit a low of 21.45 and a high of 21.84. CHU is now trading at 21.82, up 1.39 (6.39%). The stock hit its 52 week high of 25.13 in February and set its 52 week low of 13.71 in August. CHU has been moving upwards for the past year. China Unicom shares have been rallying after rival Deutsche Telekom AG (DT) said its first-quarter profit rose more than 33% on the sale of its media and broadcast unit and lower interest expenses. Technical indicators for the stock are bearish but slightly improving while S&P gives CHU a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a July bear-call credit spread above the $17.50 range. CHU stock could fall up to 19.8% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]