T.W. Telecom (TWTC) NewsBite - Downgrade Sinks T.W. Telecom

Posted on Wednesday, July 16, 2008 1:09 PM

T.W. Telecom Inc. (TWTC) opened at 14.11. So far today, the stock has hit a low of 13.61 and a high of 14.14. TWTC is now trading at 14.02, down 0.72 (-5.10%). The stock hit its 52 week high of 24.00 in October and set its 52 week low of 13.61 today. TWTC has been showing signs of weakness since October of last year. T.W. Telecom shares have been plunging today as a J.P. Morgan Securities analyst downgraded the stock to "Underweight" from "Overweight", saying enterprise trends are deteriorating in the weak economy and could have an impact on the company's core business. The broker also removed its price target of $25 a share for the company. Technical indicators for the stock are bearish and steady while S&P gives TWTC a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an October 17.50 bear-call credit spread above the $12.50 range. TWTC stock could rise up to 10.8% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]