Sprint Nextel (S) NewsBite - Sprint Nextel Tumbles on Economy Concerns

Posted on Friday, May 23, 2008 12:55 PM

Sprint Nextel Corp. (S) opened at 8.84. So far today, the stock has hit a low of 8.47 and a high of 8.97. S is now trading at 8.56, down 0.34 (-3.85%). The stock hit its 52 week high of 23.42 in June and set its 52 week low of 5.48 in March. The stock has been dropping for the past year. Shares of telecom service providers have been falling today as the broader market declined following another negative report on housing. The National Association of Realtors said existing home sales fell 1 percent in April, better than what analysts were expecting but still worrisome to investors. Technical indicators for the stock are bullish and steady while S&P gives S a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a November bear-call credit spread above the $11 range. S stock could rise up to 28.5% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]