Telefonica (TEF) NewsBite - Downgrade Drags Down Telefonica

Posted on Tuesday, July 22, 2008 12:45 PM

Telefonica SA (TEF) opened at 76.65. So far today, the stock has hit a low of 76.32 and a high of 77.18. TEF is now trading at 77.05, down 5.33 (-6.95%). The stock hit its 52 week high of 103.50 in December and set its 52 week low of 67.32 in August. TEF has been slipping since November of last year. Shares of Telefonica have been plunging after a JP Morgan analyst downgraded the stock to "Neutral" from "Overweight." Technical indicators for the stock are neutral and improving while S&P gives TEF a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $85 range. TEF stock could rise up to 10.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]