Plum Creek Timber (PCL) 11/18/09 PriceWatch Alert With 16.57% Downside Protection
Posted: Wednesday, November 18, 2009 8:47 AM EDT
By: Market Intelligence Center Staff
Plum Creek Timber (NYSE: PCL) closed yesterday at $34.39. So far the stock has hit a 52-week low of $22.88 and 52-week high of $37.89. Plum Creek Timber stock has been showing support around 33.95 and resistance in the 35.07 range. Technical indicators for the stock are Bullish and S&P gives PCL a neutral 3 STAR (out of 5) hold rating. PCL appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a May '10 30 covered call (PCL EF) for a net debit in the $28.69 area. That is also the break even stock price for this trade. This covered call has an 185 day duration, provides 16.57% downside protection and a 4.57% assigned return rate for a 9.01% annualized return rate (comparison purposes only). Plum Creek Timber has a current annual dividend yield of 4.95%. [WBA-Seven Summits Research]
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