Nokia (NOK) NewsBite - VOD Warning Pulls Down NOK

Nokia ADR (NOK) opened at $26.36. So far today the stock has hit a low of $26.26 and a high of $26.59. NOK is now trading at $26.59, down 0.73 (-2.67%). After hitting a one-year high of $42.22 in November, the stock hit a one-year low of $23.58 earlier this month. NOK shares are declining after competitor Vodaphone (VOD) warned that FY2008 sales will likely fall below the company's forecast between 39.8 billion pounds ($79.7 billion) and 40.7 billion pounds. VOD blamed widespread economic weakness for the lagging sales, which could be a bad sign for NOK. Technical indicators for NOK are neutral and improving, while S&P gives the stock a 4 STARS (out of 5) buy rating. If you're looking for a hedged play on this stock, consider an October bear-call credit spread above the $31 range. NOK hasn't been above $31 since April and has shown resistance around $27.50 recently. This trade could be risky if the economic situation gets better by October, but even if that happens, this position could be protected by resistance NOK might find around $30, where it topped out in May.

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Related terms: investment opinion, S&P, sales, trade