Republic Services (RSG) PriceWatch Alert Support Down To $22.16

Posted: Tuesday, November 18, 2008 8:07 AM EDT
By: Market Intelligence Center Staff

Republic Services (NYSE: RSG) closed yesterday at $23.37. So far the stock has hit a 52-week low of $18.25 and 52-week high of $36.52. Republic Services stock has been showing support around 22.16 and resistance in the 25.36 range. Technical indicators for the stock are Bearish and S&P gives RSG a positive 4 STAR (out of 5) buy rating. RSG appears on the Investors Observer Stocks In The News list. RSG lost $1.26 (-5.10%) Monday after the company's shareholders approved its merger with Allied Waste Industries Inc. (AW). The merger still requires Department of Justice approval, and is expected to close in the fourth quarter. For a hedged play on this stock, look at an Apr '09 20 covered call (RSG DD) for a net debit in the $18.77 area. That is also the break even stock price for this trade. This covered call has a 151 day duration, provides 19.68% downside protection and a 6.55% assigned return rate for a 15.84% annualized return rate (comparison purposes only). Republic Services has a current annual dividend yield of 2.95%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]