Arkansas Best (ABFS) NewsBite - Downgrade Puts Pressure on Arkansas Best

Posted on Thursday, May 08, 2008 1:51 PM

Arkansas Best Corp. (ABFS) opened at 37.48. So far today, the stock has hit a low of 36.94 and a high of 38.22. ABFS is now trading at 38.13, down 0.42 (-1.12%). The stock hit its 52 week high of 42.45 in May and set its 52 week low of 17.94 in January. ABFS fell in 2007, but has moved to the upside since the beginning of this year. Arkansas Best shares have been slipping after a Stifel Nicolaus analyst downgraded the stock "Hold" from "Buy," saying it is too expensive. Technical indicators for the stock are bullish and steady while S&P gives ABFS a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $45 range. ABFS stock could rise up to 18% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]