FCStone Group (FCSX) NewsBite - FCStone Surges on Analysts' Comments

Posted on Monday, June 30, 2008 12:32 PM

FCStone Group Inc. (FCSX) opened at 27.13. So far today, the stock has hit a low of 27.01 and a high of 30.23. FCSX is now trading at 29.16, up 1.99 (7.34%). The stock hit its 52 week high of 53.25 in January and set its 52 week low of 18.39 in March. FCSX rose through the second half of 2007, but has shown signs of weakness this year. FCStone Group shares have been soaring after analysts at BMO Capital recommended buying the stock despite worries about Midwest flooding, and concerns that the company's customers will not be able to fund their margins on hedge positions. Technical indicators for the stock are neutral but deteriorating. If you’re looking for a hedged play on this stock, consider an August bull-put credit spread below the $20 range. FCSX stock could fall up to 31.4% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]