Cogent Communications Group (CCOI) NewsBite - CCOI Tumbles on Downgrade

Tuesday, July 15, 2008 12:53 PM EDT

Cogent Communications Group Inc. (CCOI) opened at 10.86. So far today, the stock has hit a low of 10.05 and a high of 11.36. CCOI is now trading at 11.37, down 0.49 (-4.51%). The stock hit its 52 week high of 34.90 in July and set its 52 week low of 10.05 today. CCOI has been moving downwards for the past year. Shares of Cogent Communications Group have been plunging as a Friedman Billings analyst slashed his rating on the stock to "Underperform" from "Market Perform" and cut his price target on to $10 from $21. The broker said the company was at a higher risk of a lower 2008 revenue outlook on increased pricing pressure. Technical indicators for the stock are bearish and steady. If you’re looking for a hedged play on this stock, consider an October bear-call credit spread above the $15 range. CCOI stock could rise up to 31.9% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]

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