LM Ericsson Telephone (ERIC) NewsBite - ERIC Down on Sony Warning

Posted on Friday, June 27, 2008 10:46 AM

LM Ericsson Telephone Co. (ERIC) opened at 10.04. So far today, the stock has hit a low of 10.00 and a high of 10.22. ERIC is now trading at 10.20, down 0.65 (-6.48%). The stock hit its 52 week high of 21.70 in July and set its 52 week low of 8.52 in March. ERIC has been moving downwards for the past year. LM Ericsson Telephone shares have been taking a hit today after its joint venture, Sony Ericsson, announced it expects second-quarter sales and profit declines on market challenges. Technical indicators for the stock are bullish but deteriorating while S&P gives ERIC a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an October bear-call credit spread above the $12.50 range. ERIC stock could rise up to 22.5% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]