Sun Microsystems (JAVA) NewsBite - JAVA Expects Q4 Earnings above Estimates

Posted on Wednesday, July 16, 2008 2:41 PM

Sun Microsystems Inc. (JAVA) opened at 9.17. So far today, the stock has hit a low of 8.71 and a high of 9.24. JAVA is now trading at 9.00, up 0.20 (2.18%). The stock hit its 52 week high of 25.04 in November and set its 52 week low of 8.63 in July. JAVA has been slipping since October of last year. Sun Microsystems issued yesterday evening a fourth-quarter guidance range largely above analysts' estimates. The company expects adjusted earnings of 25 cents to 35 cents per share, while analysts forecast a profit of 27 cents per share. Technical indicators for the stock are bearish and steady while S&P gives JAVA a negative 2 STARS (out of 5) sell rating. If you are looking for a hedged play on this stock, consider a January covered call at the $9 level. That stock would have to drop by more than 13.4% before we would start to lose money. [RHF - Seven Summits Strategic Investments