Fortune Brands (FO) 11/13/09 PriceWatch Alert Targets 29.07% Return
Posted: Friday, November 13, 2009 8:26 AM EDT
By: Market Intelligence Center Staff
Fortune Brands (NYSE: FO) closed yesterday at $40.91. 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 40.18 and resistance in the 42.22 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 Jan '10 40 covered call (FO AH) for a net debit in the $38.06 area. That is also the break even stock price for this trade. This covered call has a 64 day duration, provides 6.97% downside protection and a 5.10% assigned return rate for a 29.07% annualized return rate (comparison purposes only). Fortune Brands has a current annual dividend yield of 1.85%. [FBB-Seven Summits Research]
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