I read a good bullish article on Foster Wheeler (FWLT) in the June 18th issue of Barron’s. It was actually a follow-up on a previous story they ran a while back. I forgot to bring it in to work to quote it exactly, but in short it said they have a lot more room to grow with gas prices up and even if gas prices dip some. One analyst gave a price target of 140. I mentioned FWLT last week when I said I bought my option back for a loss in January only to see the stock double within 5 months. I decided to stop missing out on the action and while FWLT was trading at $107.77 this morning, I sold one August 105 naked put (UFBTA) and received $549.25 after commissions. That puts my cost if assigned just under $100. It’s up a little this morning and if it does turn south I see support from two trend lines around 105 and climbing. If FWLT breaks through those lines, 100 should be the next support level. Schaeffersresearch.com rates FWLT 6 out of 10. That’s not as high as I’d like it to be, but it’s still on the bullish side of neutral.
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