Pitney Bowes (PBI) 10/23/09 PriceWatch Alert Could Hit 9.00% Return
Posted: Friday, October 23, 2009 8:07 AM EDT
By: Market Intelligence Center Staff
Pitney Bowes (NYSE: PBI) closed yesterday at $26.36. So far the stock has hit a 52-week low of $17.62 and 52-week high of $27.46. Pitney Bowes stock has been showing support around 25.43 and resistance in the 26.87 range. Technical indicators for the stock are Bullish and S&P gives PBI a positive 4 STAR (out of 5) buy rating. PBI appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (PBI DE) for a net debit in the $23.96 area. That is also the break even stock price for this trade. This covered call has a 176 day duration, provides 9.10% downside protection and a 4.34% assigned return rate for a 9.00% annualized return rate (comparison purposes only). Pitney Bowes has a current annual dividend yield of 5.55%. [FBB-Seven Summits Research]
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