ADC Telecommunications (ADCT) NewsBite - ADC Telecomm Slashes Outlook

Posted on Wednesday, July 23, 2008 11:25 AM

ADC Telecommunications Inc. (ADCT) opened at 10.15. So far today, the stock has hit a low of 9.70 and a high of 10.25. ADCT is now trading at 9.90, down 3.47 (-34.19%). The stock hit its 52 week high of 21.06 in July and set its 52 week low of 9.70 today. ADCT has been dropping for the past year. ADC Telecommunications slashed yesterday evening its earnings and sales expectations for the current fiscal year, citing lower demand. The company now expects earnings of 18 cents to 26 cents per share on sales in the range of $1.5 billion to $1.52 billion. Technical indicators for the stock are bearish and steady while S&P gives ADCT a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider a November bear-call credit spread above the $12.50 range. ADCT stock could rise up to 26.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]