Universal (UVV) 11/20/09 PriceWatch Alert Could Hit 24.23% Return
Posted: Friday, November 20, 2009 8:31 AM EDT
By: Market Intelligence Center Staff
Universal (NYSE: UVV) closed yesterday at $45.06. So far the stock has hit a 52-week low of $25.35 and 52-week high of $46.54. Universal stock has been showing support around 43.56 and resistance in the 46.54 range. Technical indicators for the stock are Bullish and S&P gives UVV a positive 4 STAR (out of 5) buy rating. UVV appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Feb '10 45 covered call (UVV BI) for a net debit in the $42.41 area. That is also the break even stock price for this trade. This covered call has a 92 day duration, provides 5.88% downside protection and a 6.11% assigned return rate for a 24.23% annualized return rate (comparison purposes only). Universal has a current annual dividend yield of 3.99%. [FBB-Seven Summits Research]
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