Fortune Brands (FO) 10/23/09 PriceWatch Alert Targets 14.24% Return
Posted: Friday, October 23, 2009 8:20 AM EDT
By: Market Intelligence Center Staff
Fortune Brands (NYSE: FO) closed yesterday at $43.13. So far the stock has hit a 52-week low of $17.68 and 52-week high of $46.59. Fortune Brands stock has been showing support around 40.88 and resistance in the 44.40 range. Technical indicators for the stock are Bullish and S&P gives FO a weak 2 STAR (out of 5) sell rating. FO appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Dec '09 40 covered call (FO LH) for a net debit in the $39.13 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 9.27% downside protection and a 2.22% assigned return rate for a 14.24% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.77%. [FBB-Seven Summits Research]
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