Fortune Brands (FO) 10/27/09 PriceWatch Alert Shows Bullish Technicals

Posted: Tuesday, October 27, 2009 8:19 AM EDT

Fortune Brands (NYSE: FO) closed yesterday at $41.24. So far the stock has hit a 52-week low of $17.68 and 52-week high of $46.77. Fortune Brands stock has been showing support around 39.22 and resistance in the 45.24 range. Technical indicators for the stock are Bullish and S&P gives FO a neutral 3 STAR (out of 5) hold 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 $38.49 area. That is also the break even stock price for this trade. This covered call has a 53 day duration, provides 6.67% downside protection and a 3.92% assigned return rate for a 27.02% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.76%. [ATU-Seven Summits Research]

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