Oshkosh Truck (OSK) 11/6/09 PriceWatch Alert Shows Bullish Technicals

Posted: Friday, November 06, 2009 8:15 AM EDT

Oshkosh Truck (NYSE: OSK) closed yesterday at $36.70. So far the stock has hit a 52-week low of $3.85 and 52-week high of $37.19. Oshkosh Truck stock has been showing support around 35.49 and resistance in the 37.79 range. Technical indicators for the stock are Bullish and S&P gives OSK a very positive 5 STAR (out of 5) strong buy rating. OSK appears on the Investors Observer Stocks In The News list. OSK reported earnings Tuesday, posting a fourth-quarter profit of $140.3 million, or $1.68 per share. Excluding one-time items, OSK earned 27 cents per share on revenue of $1.48 billion, topping analysts' projections of 16 cents per share on revenue of $1.40 billion. For a hedged play on this stock, look at a Jan '10 30 covered call (OSK AF) for a net debit in the $28.60 area. That is also the break even stock price for this trade. This covered call has a 71 day duration, provides 22.07% downside protection and a 4.90% assigned return rate for a 25.16% annualized return rate (comparison purposes only). Oshkosh Truck does not pay dividends at this time. [FBB-Seven Summits Research]

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