Forest Laboratories (FRX) 10/26/09 PriceWatch Alert Down To $26.43 Break Even
Posted: Monday, October 26, 2009 8:39 AM EDT
By: Market Intelligence Center Staff
Forest Laboratories (NYSE: FRX) ended the last trading session at $27.88. So far the stock has hit a 52-week low of $18.37 and 52-week high of $30.56. Forest Laboratories stock has been showing support around 27.05 and resistance in the 29.39 range. Technical indicators for the stock are Bearish and S&P gives FRX a neutral 3 STAR (out of 5) hold rating. FRX appears on the Investors Observer Stocks In The News list. Deutsche Bank upgraded FRX Thursday to a Buy rating, up from a previous rating of Hold. For a hedged play on this stock, look at a Dec '09 27.50 covered call (FRX LY) for a net debit in the $26.43 area. That is also the break even stock price for this trade. This covered call has a 54 day duration, provides 5.20% downside protection and a 4.05% assigned return rate for a 27.36% annualized return rate (comparison purposes only). Forest Laboratories does not pay dividends at this time. [ABR-Seven Summits Research]
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