Tenneco (TEN) NewsBite - Tenneco Plunges on Disappointing AXL Earnings

Posted on Monday, July 28, 2008 3:45 PM
Tenneco Inc. (TEN) opened at 13.14. So far today, the stock has hit a low of 12.10 and a high of 13.17. TEN is now trading at 12.20, down 1.01 (-7.69%). The stock hit its 52 week high of 37.73 in August and set its 52 week low of 11.47 in July. TEN has been slipping for the past year. Shares of Tenneco have been plunging today with other auto suppliers after American Axle & Manufacturing Holdings Inc. (AXL) posted on Friday evening a $644.3 million second-quarter loss. In addition, General Motors Corp. (GM) announced it will cut production by another 117,000 vehicles, citing continued weak in consumer demand for pickup trucks and sport utility vehicles. Technical indicators for the stock are bearish but slightly improving while S&P gives TEN a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $15 range. TEN stock could rise up to 23% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]
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