Sun Microsystems (JAVA) NewsBite - Weak Forecast Pulls Down JAVA

Posted on Friday, August 01, 2008 10:09 AM

Sun Microsystems (JAVA) opened at $9.75. So far today the stock has hit a low of $9.27 and a high of $10.02. JAVA is now trading at $9.17, down 1.46 (-13.73%). After hitting a one-year high of $25.04 in October, the stock hit a one-year low of $8.63 in July. JAVA shares are trading lower this morning after the company warned it will likely not turn a profit in the current quarter. JAVA executives said a weak financial sector has led to lower sales for the company. Technical indicators for JAVA are bearish and improving slightly, while S&P gives the stock a bearish 2 Stars (out of 5) Sell rating. If you’re looking for a hedged play on this stock, consider an October bear-call credit spread above the $11 range. JAVA hasn't been above 11 since early July, and could gain up to 19.9% before this trade loses money. [LHF- Seven Summits Strategic Investments NewsBite]